Dow Chemical shares jump after price increase

Shares of Dow Chemical Co. jumped Monday after the company said it's raising prices on the base products for products like plastics and paints, a move that will boost revenue.

Midland, Mich.-based Dow said it will raise prices for acrylic monomers by 3 cents per pound and prices for vinyl acetate monomers by 4 cents per pound.

Both chemicals are used in a wide array of products, like clothes, leather finishes and glues. Dow's price increase likely will mean higher costs for these and other products for consumers.

Dow blamed rising prices for raw materials _ like crude and natural gas _ for the price hike. Those fuels are some of the main building blocks for thousands of chemicals, and their prices have risen slowly and steadily in recent weeks, eating into profits.

The new prices will take affect on June 1, or when contracts with customers allow, the company said. The timing means the increase will not be reflected in second-quarter results.

A jump in prices will also translate into higher revenue, news that was well-received on Wall Street. The stock rose 97 cents, or 5.9 percent, to $17.44 in afternoon trading. In the past 52 weeks, shares have traded between $5.89 and $43.43.