The market, and the Dow in particular, had a bit of a retreat today after 3M (MMM) offered disappointing earnings and guidance when it reported before the session began. The Dow slipped 0.51% (134.97 points) before the market closed while the S&P 500 fell 0.04% (1.08 points) despite holding onto gains for most of the day. The Nasdaq was able to stay afloat today, though, as it edged up 0.21% (16.67 points).
Despite the Dow ending in the red, their were some companies that had a better day. Microsoft (MSFT) rose 3.31% after it reported its quarterly earnings Wednesday evening, showing that it had beat analysts’ expectations for its quarterly earnings. Visa (V) also reported after the market closed yesterday, and it beat estimates of $1.28 per share with the actual earnings coming in at $1.31.
The one component that really moved the index today, though, was 3M (MMM). This morning the company reported that its earnings missed the mark by quite a bit. They had earnings of $2.23 per share, a far cry from the $2.51 that Wall Street had been estimating. That wasn’t the only bad news. 3M also announced that it will be laying off 2,000 workers world-wide and lowered it guidance for revenue. Stock in the company crashed 12.95%.
In slightly more positive news, orders for durable goods beat expectations for March, rising 2.7% for the month despite an estimated rise of just 0.8%. Capital goods orders helped to move the reading, as those orders saw their biggest gain in 8 months. Michael Pearce, an economist with Capital Economics, noted, “The strong rise in durable goods orders in March was driven in part by a surge in underlying capital goods orders which, together with stronger retail sales last month, suggests the economy is carrying more momentum into the second quarter.”
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