Dow Drops 32; Crude Rises

Rohm & Haas, Dow Chemical fall on scuttled Kuwait deal
By Nick McMaster,  Newser Staff
Posted Dec 29, 2008 3:27 PM CST
Traders work on the floor of the New York Stock Exchange in this undated file photo.   (AP Photo/Richard Drew)
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(Newser) – Stocks saw light losses today as news of trouble in Rohm & Haas’ acquisition of Dow Chemical hurt materials and crude staged a comeback on renewed Middle East tension, MarketWatch reports. The Dow closed down 31.62 points at 8,483.93. The Nasdaq fell 19.92 to close at 1,510.32, and the S&P 500 shed 3.38 to close at 869.42.

Israeli air strikes in the Gaza Strip pushed crude oil futures higher on anticipation of supply issues; the contract for February delivery climbed $2.31 to $40.02. Dow Chemical shares closed down 17.0% after Kuwait scuttled a joint venture with the firm, and the bad news sent shares of Rohm & Haas, which Dow plans to acquire, down 15.7%. DuPont, another materials leader, suffered collateral damage, falling 2.2%.