This morning, Dow Chemical reported that third-quarter earnings dropped 21% thanks to charges related to recent acquisitions and a change in German tax laws. The nation's top chemicals producer realized earnings of 42 cents per share, down from 53 cents per share a year ago. Sales for the quarter increased 10% to $13.6 billion from last year's $12.4 billion. Adjusted earnings totaled 84 cents per share, which fell from 98 cents per share a year ago. Expectations called for earnings of 90 cents per share on revenue of $12.7 billion. According to DOW, it took a $59 million pretax charge in the quarter for purchased in-process research and development related to recent acquisitions. In addition, net income included a $362 million charge thanks to a change in German tax law.

In early trading, DOW has shed slightly more than 1% in reaction to the earnings report. That said, the pessimism leveled toward DOW is intriguing. Yes, the stock hasn't been the greatest performer, but a Schaeffer's put/call open interest ratio (SOIR) percentile ranking of 96% is a tad high in my opinion. This pessimism could eventually unwind and push the stock higher. Furthermore, should the 7 analysts rating the stock a hold issue upgrades, the stock could be pushed higher.