Dow Chemical falls in middle of supply chain amid concerns over oil prices

Shares of chemical company Dow fell about 1% to close at a price of $ 59.26 per share on Thursday, despite announcing substantial earnings gains in its third quarter results.

Net sales increased 53% year-over-year and 7% from the previous quarter to $ 14.8 billion, while operating profit was $ 2.75 per share, from $ 0.50 one year ago. Dow even reported net income of $ 1.7 billion, down from a loss of $ 1 million last year in the comparable quarter.

While these numbers have exceeded analysts’ expectations, investors have focused more on high commodity prices and supply chain constraints that have limited profitability.


Dow supplies valuable commodity chemicals like silicone and polyethylene to create products related to commodities and crude oil.

The company’s stock is therefore closely tied to global supply chains, commodity prices, and trade relationships – all of which were highly volatile in the previous quarter, with little sign of it going down in the near to medium term.

Oil prices hit multi-year highs during the quarter and supply chains continue to be clogged with inactive vessels at sea awaiting ports to open.

“Despite the higher energy costs and industry-wide value chain disruptions from hurricanes on the US Gulf Coast, our proactive storm preparations have allowed us to keep our team safe. and our operations, and recover quickly, ”said Jim Fitterling, President and CEO, in a statement.

“In addition to our global presence, flexibility in raw materials and structural advantages in terms of costs, we continued to capture strong end market demand and price dynamics. “

Dow share performance

Dow Jones shares rose 9.66% on the year, but took a negative turn midway through the year as concerns over supply chain issues and oil prices began to rise. to augment.

The shares peaked at a price of $ 71.38 in May, but have since fallen more than 16%.

In 2019, DowDuPont split into three distinct companies: its chemical activity under Dow, its science activity under Dupont de Nemours and its agricultural activity called Corteva.

Read more: Oil giant Baker Hughes misses Street’s expectations

Difference between stocks and CFDs

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when trading an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you have chosen to trade. You can still benefit if the market moves in your favor, or suffer a loss if it moves against you.

However, with traditional stock trading, you enter into a contract to exchange legal ownership of individual stocks for cash, and you own that equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the total value of the CFD trade to open a position. But with traditional stock trading, you buy the stocks for the full amount. In the UK there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs come with overnight costs to hold trades (unless you use 1 to 1 leverage), which makes them more suitable for short-term trading opportunities. Stocks are more normally bought and held longer. You can also pay a commission or brokerage fees when buying and selling stocks.

Ready to start?


Capital Com is an execution-only service provider. The material provided on this website is for informational purposes only and should not be construed as investment advice. Any opinion that may be provided on this page does not constitute a recommendation of Capital Com or its agents. We make no representations or warranties about the accuracy or completeness of the information provided on this page. If you rely on the information on this page, you do so entirely at your own risk.

Previous The U.S.-Chinese tariff failure of 2019 - SupChina
Next Bursa suspends trading in Serba Dinamik securities from 2:30 p.m. Friday until further notice