3 Basic Materials Stocks Dragging The Sector Down

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One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 16 points (-0.1%) at 16,836 as of Monday, June 30, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,605 issues advancing vs. 1,347 declining with 197 unchanged.

The Basic Materials sector currently sits up 0.2% versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include Valero Energy ( VLO), down 2.0%, Gerdau ( GGB), down 1.9%, Ultrapar Participacoes ( UGP), down 1.8%, China Petroleum & Chemical ( SNP), down 1.2% and Phillips 66 ( PSX), down 1.0%. Top gainers within the sector include PPG Industries ( PPG), up 2.5%, Linn Energy ( LINE), up 1.8%, Chesapeake Energy ( CHK), up 1.6%, Transocean ( RIG), up 1.2% and Apache Corporation ( APA), up 0.9%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Petroleo Brasileiro SA Petrobras ( PBR.A) is one of the companies pushing the Basic Materials sector lower today. As of noon trading, Petroleo Brasileiro SA Petrobras is down $0.17 (-1.1%) to $15.48 on light volume. Thus far, 3.1 million shares of Petroleo Brasileiro SA Petrobras exchanged hands as compared to its average daily volume of 9.7 million shares. The stock has ranged in price between $15.47-$15.85 after having opened the day at $15.84 as compared to the previous trading day's close of $15.65.

Petroleo Brasileiro S.A. - Petrobras operates as an integrated oil and gas company in Brazil and internationally. Petroleo Brasileiro SA Petrobras has a market cap of $102.8 billion and is part of the energy industry. Shares are up 6.5% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Petroleo Brasileiro SA Petrobras as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow. Get the full Petroleo Brasileiro SA Petrobras Ratings Report now.

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