US Dow Jones Industrial Average stocks rise 5%

16 October 2008 21:30  [Source: ICIS news]

HOUSTON (ICIS news)--US stocks on the Dow Jones Industrial Averaged closed on Thursday at 8,979, gaining  5% despite a host of bad economic news.

Earlier in the day, the Dow had dropped as much as 379 points before recovering, ending the day up 401 points.

Among US chemicals traded on the New York Stock Exchange, shares of Sherwin-Williams rose by some of the largest amounts. The stock hit $56.89/share ( €42.10), up 15%, following news that the company's third-quarter results beat expectations.

PPG Industries traded at $50.92/share, up 14%, after its third-quarter results also beat expectations.

Pigment producer Kronos was among the day's biggest losers, with shares trading at $10.14, down 9%.

Among the majors, Dow Chemical traded at $24.32/share, up 9%. DuPont traded at $33.83/share, up 5%.

For the most part, chemical stocks moved higher despite more troubling news from the US economy.

Confidence among the nation's house builders fell this month to a new low of 14, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

"Undoubtedly, today’s HMI reflects builder assessments of the recent events on Wall Street, the rapid deterioration in job markets and the corresponding weakness in consumer confidence,” according to a statement by David Seiders, chief economist for the National Association Home Builders.

In other news, US manufacturing activity will fall over the next six months, according to the Manufacturers Alliance. The group reported the lowest index of production expectation since 2001.

The nation's consumer prices remained mostly flat in September, the US Labor Department said.

London’s FTSE 100 index continued to fall, down 5.46% from Wednesday’s close to keep it below the 4,000 mark, its lowest point in five years. Germany's Dax index dropped 4.91%, while in Paris the CAC was down 5.92%.

In Japan, the Nikkei 225 index posted its biggest one-day drop since the 1987 crash, falling 11.41%.

Crude oil, meanwhile, continues to fall. US crude closed at $69.85/bbl, down $4.69.

($1 = €0.74)

To discuss how the financial crisis is affecting the chemicals industry visit this thread on ICIS connect

By: Al Greenwood
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