Neither 3M (MMM) nor Boeing (BA) may catch a break. Their multi-year lows pulled the Dow Jones.
Negative sentiment is unlikely to ease from here. As markets discount shares further, add them to the
watch list.
Markets punished 3M stock because it is potentially liable for paying a settlement for more than its
market capitalization. Its subsidiary, Aearo Technologies, makes military-grade earplugs. It booked a
charge to cover litigation. It faces thousands of lawsuits that accuse the firm of hearing damage caused
by its ear plugs.
3M tried to isolate the unit from further losses. However, a judge will not let a bankruptcy filing stop the
230,000 earplug lawsuits.
At a nine-year low recently, the uncertainties create a potential long-term buy for value seekers.
Boeing is closer to the end of putting the 737 MAX crash behind it. It discussed returning the plane to
service with China’s aviation authorities. Still, investors are avoiding BA stock because it is signaling a
slowdown. On September 21, 2022, Wall Street Journal reported that it planned to cut 150 finance jobs.
It is also cutting IT (technology) positions.
In a bear market, investors are choosy. 3M and Boeing are among the most discounted stocks on the
Dow today.