5 Sep

Eastman Chemical to Expand CHDM Capacity


Eastman Chemical plans to expand

On August 31, 2017, Eastman Chemical (EMN) announced its plan to increase its production capacity of cyclohexanedimethanol (or CHDM) through multiple projects at its Kingsport, Tennessee, manufacturing facility. EMN aims to increase the production capacity of CHDM to 15,000 metric tons spread over a period of 18 months. EMN expects the project to be completed by 2019.

Eastman Chemical to Expand CHDM Capacity

Eastman anticipates higher demand growth for its copolyesters, and the addition of the new capacity is expected to meet the demand. Vice president and general manager of Eastman’s Specialty Plastics business Burt Capel, said, “We are very excited to continue making investments to grow our copolyester business.”

Eastman Chemical’s stock performance

Eastman Chemical had a strong week last week. The stock closed at $87.31 with a rise of 2.9% for the week ended September 1, 2017. The gains in the stock price have resulted in the stock trading 6.0% above the 100-day moving average price of $82.39, indicating an upward trend in the stock. On a year-to-date basis, the stock has returned 15.8%. Analysts are still positive on the stock and have recommended a target price of $92.75, which implies a potential return of 6.2% over the next-12-month period. EMN’s relative strength index of 66 indicates that at present the stock is neither overbought nor oversold.

Investors looking for exposure to EMN indirectly can invest in the ProShares Ultra Basic Materials (UYM), which has invested 1.3% of its portfolio in EMN. The fund also provides exposure to Monsanto (MON), LyondellBasell (LYB), and Air Products and Chemicals (APD), which have weights of 5.4%, 3.1%, and 3.4%, respectively, as of September 1, 2017.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.