Shares of 3M Company (NYSE: MMM) experienced a notable fluctuation in the stock market following the release of its latest earnings report. Initially, the stock surged over 5% in premarket trading, reaching a high of $131.39. This increase positioned 3M as a frontrunner among all S&P 500 constituents. The company’s positive earnings announcement and revised full-year guidance contributed to this initial rally. 3M raised the lower end of its earnings forecast from $7 per share to at least $7.2 per share, reflecting confidence in its financial performance.
Despite the promising start, the stock reversed its gains once the market opened, ultimately experiencing a decline of nearly 3%. However, the loss has since moderated. The earnings report highlighted that 3M’s earnings per share (EPS) came in at $1.98, surpassing Wall Street’s expectations of $1.90. Additionally, the company reported third-quarter revenue of $6.1 billion, slightly exceeding the anticipated $6.06 billion and marking a 1.5% increase from the previous year. These results are indicative of a strong performance trend, with 3M’s stock appreciating more than 50% year-to-date.
Bill Brown, who took over as CEO in May, attributed the growth to enhancements in on-time product delivery, which have positively impacted the company’s operational efficiency.
In a separate development, Starbucks (NASDAQ: SBUX) faced challenges as it reported a decline in sales for the second consecutive quarter. After-hours trading saw Starbucks shares dip following the announcement of $9.1 billion in revenue, which represented a 3% decrease from the previous quarter. The company’s comparable sales—a critical metric for retail performance—also fell for the second quarter, a stark contrast to the positive growth it had maintained since 2021. In light of these results, Starbucks has suspended its sales guidance for 2025.
This news comes on the heels of the appointment of Brian Niccol, the former CEO of Chipotle, as Starbucks’ new chief executive. His arrival had previously sparked a surge in the company’s stock price, but the recent earnings report has raised concerns among investors.
Meanwhile, the broader US stock market exhibited mixed signals, with the S&P 500 closing Tuesday with a slight loss of 0.1%. The Nasdaq 100, however, managed to gain 0.1%, while the Russell 2000 index, which focuses on small-cap stocks, fell by 0.4%. Treasury yields remained relatively stable, with the 10-year bond yield hovering around 4.2% after an increase of 11 basis points the previous day. Market participants are now pricing in an 8.9% likelihood of no interest rate cuts during the upcoming Federal Reserve meeting.
In the commodities market, oil futures experienced gains for the second consecutive session, recovering some of the losses incurred in the previous week. Gold prices also saw an uptick, reflecting a mixed performance across various sectors. The consumer staples sector led the gains, advancing by 0.6%, largely fueled by a significant increase in Philip Morris International’s (NYSE: PM) stock, which surged 10.5% following a robust earnings report. This made Philip Morris the top gainer within the S&P 500 on Tuesday.
Conversely, the industrial sector faced challenges, declining by 1.2% and becoming the biggest laggard of the day. General Electric Aerospace (NYSE: GE) experienced its worst daily performance in over two years, with shares plummeting 9.07% after a quarterly report that failed to meet Wall Street’s expectations.
In other notable corporate news, General Motors (NYSE: GM) emerged as the second-best performing stock in the S&P 500, with a notable increase of 9.79%. These developments illustrate the ongoing volatility and varied performance across different sectors in the current market landscape.
