Today DuPont (DD) suffered a 9.88% loss and is currently trading at $24.26. While the broader market was down 5% today, the reasoning behind the near 10% decline in DD was the sudden news that BASF SE, which makes such items as fertilizers, glues and cosmetic ingredients, said it would temporarily close 80 plants worldwide due to slumping demand and cut production at 100 more, including its major U.S. facilities in Louisiana and Texas. This led to a major sell off in chemical companies as a whole, but DuPonts percentage drop was one of the largest among them. Deutsche Bank analyst David Begleiter said the magnitude of the announcement was "unprecedented" and said the fourth quarter will likely be the chemical industry's toughest since the fourth quarter of 2001.
We are going to keep DD as a HOLD for today, and the materials group will be discussing future plans for DD at tomorrows meeting.
SOURCE: http://biz.yahoo.com/ap/081119/chemicals_sector_snap.html?.v=1
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