3M Drops 6.3% After Disappointing Earnings Report

Indexes drifted between gains, losses
By Newser Editors and Wire Services
Posted Jan 24, 2023 3:31 PM CST
3M Drops 6.3% After Disappointing Earnings Report
The logo for 3M appears on a screen above the trading floor of the New York Stock Exchange.   (AP Photo/Richard Drew, File)

Stocks ended mixed on Wall Street Tuesday after drifting between gains and losses as more big US companies delivered their earnings reports for the last three months of 2022. Some of them came up short of what investors were expecting, leading to drops in their stock prices, the AP reports. The latest batch of earnings show that companies continue to struggle with the effects of inflation on consumers and supply chains. The S&P 500 fell 2.86 points, or 0.1%, to 4,016.95. The Dow Jones Industrial Average rose 104.40 points, or 0.3%, to 33,733.96. The Nasdaq composite fell 30.14 points, or 0.3%, to 11,334.27. Long-term Treasury yields slipped and crude oil prices fell.

Post-it notes and industrial coatings maker 3M fell 6.3% after reporting weak fourth-quarter earnings and announcing job cuts. The company, which is cutting about 2,500 manufacturing jobs worldwide, is the latest firm to announce layoffs as consumers get squeezed by inflation and worries grow about a bigger pullback in spending and a possible recession. Union Pacific fell 3.3% after reporting disappointing earnings and revenue. The government will release gross domestic product data for the fourth-quarter on Thursday. Economists expect less than 1% of growth, following 1.9% growth in the third quarter and a contraction during the first half of 2022.

Trading in more than a dozen companies was temporarily halted on the New York Stock Exchange after an apparent technical issue caused wide swings in their stock prices right as the market opened. Shares in Morgan Stanley, Wells Fargo, AT&T, and other companies moved sharply at the open, triggering a halt in trading. The prices corrected after trading resumed. The NYSE says it is investigating the "reported issues" and all systems are now operational. (More stock market stories.)

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