Fall of chemical stocks exceeds rest of market

Abstract

During the stock market's steady retreat from its mid-May high, chemical company stocks have fared worse than the market in general—already starting their fall in mid-March. On May 22, the Dow Jones industrial average, composed of 30 major industrial companies, reached a high for the year of 5,778. But by July 17, it had dropped 7% from the peak to 5,377. And the market's price volatility and trading volume have been unprecedented. On July 15, the Dow average fell 161 points, or 3%, to 5,350. The next day, it fell 167 points more, rebounded 220 points, and ended the day 9 points higher than it had started. Some 680 million shares were traded on the New York Stock Exchange on July 16, a one-day record. On July 17, the Dow average gained 18 points. By contrast, C&EN's index of stocks of seven major chemical companies peaked on March 19. By July 17, that index had ...