Shares of Dow Inc.
dropped 4.2% in morning trading Tuesday, enough to make them the biggest decliners among its materials peers
and the Dow Jones Industrial Average
The selloff comes after the stock ran up 5.1% over the past two sessions. On Friday, BofA Merrill Lynch analyst Steve Byrne downgraded Dow to underperform from neutral, and slashed his price target to $41 from $55, saying that while the chemical company has been successful in controlling costs, that has largely been offset by “eroding fundamentals” across its polyethylene, methyl diphenyl diisocyanate, monoethylene glycol and Siloxanes products. Dow’s stock has now shed 12.8% over the past three months, while the SPDR Materials Select Sector ETF has gained 5.2% and the Dow has tacked on 1.7%.
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