Dow Inc. (DOW) Jumps 2.6% on Petrochem Shortage

Dow Inc. (NYSE:DOW) is one of the 10 Stocks Leaving the Market in the Dust Today.

Dow Inc saw its share prices increase by 2.57 percent on Monday to close at $41.87 apiece, as investors digested news about the petrochemical shortage amid the ongoing tensions in the Middle East.

Speaking at the CERAWeek by S&P Global last week, Dow Inc. (NYSE:DOW) Chairman and CEO Jim Fitterling said that the shortages in petrochemical supplies that triggered higher prices could cause inflationary effects on construction materials, consumer goods, automotive, as well as aerospace industries, at least through the end of the year.

Photo from Dow website

“The die is being cast for the rest of the year for what’s going to happen in the markets,” Fitterling said. “It’s like the unwind we saw on supply chains during COVID.”

“You could be in the 250- to 275-day [range]. This is not going to be an instantaneous rewind.”

Investors, however, took the comment positively, loading portfolios while betting on higher profit margins for Dow Inc. (NYSE:DOW) amid the ongoing supply restrictions and price spikes.

Dow Inc. (NYSE:DOW) is a materials science company engaged in the production of plastics, coatings, and silicone-based products, among others.

Last year, it swung to a net loss attributable to shareholders of $2.6 billion from a $1.1 billion net income last year. Net sales were also down by 7 percent to $39.97 billion from $42.96 billion year-on-year.

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