Materials ETFs Slip as PPG Industries Sounds Warning Bell

The chief executive also stated that the raw material costs are expected to continue increasing for the current quarter but at a more modest pace compared to last year.

PPG shares plunged 10.1% on the Tuesday announcement, one of its worst daily declines in over two years.

The negative outlook from the materials provider was seen as a warning for the potential broad sector in the upcoming earnings season.

“If industrials and materials are weighed on because of concerns about global activity, it’s going to cast a pall over the market at large since S&P 500 companies generate about half of their business from overseas markets,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, told U.S. News.

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