Price plunge shaves nearly 130 points off the Dow industrials’ price after lowered profit and sales outlook
3M Co. earnings report is shaping up to be the most disappointing for investors in over a decade, as the industrial and consumer products manufacturer’s stock plunged into bear-market territory. The company, which brands include Post-it, Scotch and Thinsulate, reported before Tuesday’s open first-quarter results that were in line with expectations. But the company trimmed its full-year guidance ranges for profit and revenue, citing softness in its automotive aftermarket, oral care and consumer electronics businesses. That sent 3M’s stock MMM, -7.85% tumbling 8.6% in afternoon trade, enough to pace the Dow Jones Industrial Average’s DJIA, -2.26% losers, as it heads for the first sub-$200 close since July 2017. The price decline of $18.60 was subtracting about 128 points off the Dow’s price, which was down 374 points. See Market Snapshot. The selloff is putting the stock on track to be the biggest one-day post-earnings percentage decline since Oct. 19, 2007, when it tumbled 8.6% following 3M’s third-quarter 2007 results. The stock has now shed 23.7% since its Jan. 26, 2018 closing record of $258.63. Many on Wall Street define a bear market as a decline of 20% or more from a bull-market peak. The last time 3M shares were in bear-market territory was January 2012. Although the magnitude of the stock’s decline may be a surprise, the fact that investors were disappointed with results is not. The company hasn’t missed earnings expectations since the first quarter of 2015, but the stock has declined on the day earnings were revealed in eight of the 13 quarters since then.