BCPC - Materials Sector Weekly Round-up: Quaker tops list on earnings beat; Balchem at bottom

The S&P 500 Materials index closed this trading week with a slight dip of 0.58%. The Materials Select Sector SPDR (NYSEARCA:XLB) also registered a similar drop.

A look at the sector's YTD price performance against S&P 500:

Copper price rose on Friday following a strong US jobs report suggesting the economy may not be in a recession. Copper ( HG1:COM ) for delivery in September grew 2.8% on the Comex market in New York, reaching $3.58 per pound. Prices recovered from three consecutive days of losses driven by weak global factory data and flaring U.S.-China tensions after U.S. House of Representatives Speaker Nancy Pelosi's visit to Taiwan.

Gold futures finished sharply lower on Friday, as the U.S. jobs report was "bad news for gold bulls," showing employers hired far more workers than expected in July, which propelled U.S. Treasury yields and the dollar higher. Comex gold for December delivery ( XAUUSD:CUR ) closed -0.9% to $1,791.20/oz, but gold gained 0.5% for the week based on the front-month contract, while Comex silver ( XAGUSD:CUR ) settled -1.8% for the week at $19.842/oz.

Other base metals had a mixed run, with LME aluminium, nickel, tin showing modest gains, while zinc and lead contracting on Friday.

Lumber futures ( LB1:COM ) tumbled 10% for the week, settling at a new 2022 low of $479.20 per thousand board feet. The commodity has fallen close to its 52-week trading low as the housing market showed continued signs of cooling.

Take a look at this week's top gainers among basic material stocks ($2B market cap or more):

• Quaker Chemical ( KWR ) +18.66% ; Quaker posted better-than-expected Q2 results and raised its dividend this week.
• Mp Materials ( MP ) +15.11% ; MP's Q2 adjusted earnings comfortably beat expectations and revenues nearly doubled as demand and prices rose for rare earth materials.
• Sigma Lithium ( SGML ) +13.68%
• Summit Materials ( SUM ) +11.05% ; Summit's Q2 earnings beat estimates, but revenues fell short.
• Cemex ( CX ) +9.02% ; Shares continued their rally this week after Q2 results beat estimates despite higher energy costs and supply chain headwinds.

Here are the top decliners for the week:

• Balchem ( BCPC ) -6.84%
• Scotts Miracle-Gro ( SMG ) -6.33% ; Scotts swung to a loss in its Q3 results this week, and it issued mixed guidance for the full year.
• Sociedad Quimica y Minera de Chile ( SQM )-6.08%
• Innospec ( IOSP ) -5.90% ; Shares fell even as the company posted Q2 earnings and revenues that beat estimates.
• SSR Mining ( SSRM ) -5.19% ; SSR reported its Q2 numbers , revising its cost guidance higher even as its production guidance remained unchanged.

Other materials ETFs to watch: iShares Global Timber & Forestry ETF ( WOOD ), Materials Select Sector SPDR ETF, Vanguard Materials ETF ( VAW ), iShares Global Materials ETF ( MXI ), SPDR S&P Metals and Mining ETF ( XME ), VanEck Vectors Gold Miners ETF ( GDX ), iShares MSCI Global Gold Miners ETF (NASDAQ:RING), Global X Copper Miners ETF ( COPX ).

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