Chemical Mc's Nuggets

Research evidence excerpt

Chemical Mc's Nuggets

June 5, 2026 | 14:07 ET~

US Chemicals

Chemical Mc's Nuggets US Chemicals

John P. McNulty, CFA Analyst

john.mcnulty@bmo.com (646) 946-8428

Bhavesh Lodaya Analyst

Bottom Line: bhavesh.lodaya@bmo.com (347) 274-1393

It was a busy week in the chemical space with the surprise of SHW/Nippon reversing Caleb Boehnlein Senior Associate

their attempt to buy Akzo (five days after posting it), as well as disappointing results caleb.boehnlein@bmo.com (347) 906-1860

in the May US chemical contract settlements (flat vs. down expectations). We also saw Margarita Margulis Associate

mixed Macro data with US PMI for May coming in a bit light (55.1 vs. 55.3 expectations) margarita.margulis@bmo.com (332) 257-0592

but ISM coming in better at 54 vs. 53.1. Finally, the US job report was a blow out, with Legal Entity: BMO Capital Markets Corp.

jobs up 172K (and prior months revised higher) vs. expectations for a mere 80K. With

all of this the chemical sector was down 1.2% and underperformed the broader market What's Inside

(which was up 0.3%). That said, there was significant variance within the group with a In our weekly review of the US Chemicals sector,

number of names down M/HSD while the top 10 performers were flat to up MSD. we analyze what drove stock moves this past week,

key news in the broader space, commodity updates,

Key Points and changes to key financial metrics (e.g., consensus

estimates, valuation, short interest, etc.)The News: There was a reasonable amount of news during the week with the most

notable being SHW/Nippon's announcement that they were pulling out of their attempt

to buy Akzo (after only unveiling the rejected bid a week earlier and implications that

they would linger around for a while)--this sent SHW and AXTA both solidly higher