Here’s Why Basic Materials Stocks Are Getting Drilled Now
Basic Materials (NYSE:XLB) stocks are leading markets lower because the second quarter GDP number came in at 1.3%, below expectations of 1.8%. Q1 GDP was also revised downwards to 0.4%. More ugly numbers came in as the Commerce Dept. revised GDP numbers over the past decade, showing that GDP fell 5.1% between the fourth quarter of 2007 and the second quarter of 2009, upwardly revised from the 4.1% drop previously estimated. The only other contraction to the economy to rival that was a 3.7% decline between 1957 and 1958.
Basic materials stocks are reeling from the news. Here’s a look at how some of the most actively traded stocks in the sector are faring today: