After a two-week absence, 3M Co. (NYSE: MMM) dropped once again into the Dow Jones industrials cellar. The industrial giant’s stock lost about 2.2% last week and is now trading down 11.7% for the year to date.
The second-worst Dow stock so far this year is Goldman Sachs Group Inc. (NYSE: GS), which is down 10%. That is followed by Procter & Gamble Co. (NYSE: PG), down 9%, Caterpillar Inc. (NYSE: CAT) down 8.5%, and McDonald’s Corp. (NYSE: MCD), down 6.6%.
The blue-chip index added 38.28 points last week to close at 26,154.67, up about 0.9% compared to the previous Friday’s close. For the third quarter to date, the Dow is up 8.2%, better than the S&P 500 (up 7.1%) and the Nasdaq Composite (up 6.8%). For the year to date, the index is up 5.4%, trailing both the S&P 500 (up 7.8%) and the Nasdaq Composite (up 14.3%).
3M didn’t generate any big news last week, but analysts and investors are wary of the whole industrials sector. The Trump administration on Friday imposed a new round of $200 billion in tariffs on China and threatened to add another $267 billion.
The industrial conglomerates, of which 3M is one, have been hardest hit by the trade battles, down about 10% for the year to date and more than 15% for the past 12 months. Even at that, the sector’s forward price-to-earnings (P/E) ratio is still a more than healthy 20.42.
3M is the second-largest holding in the Industrial Select Sector SPDR ETF (NYSEARCA: XLI) at 5.29%. Boeing is the largest with a 7.93% share of the fund, but even it’s 22% year-to-date share price increase isn’t enough to push the fund’s increase for the year even to the same level as the Dow’s gains. The sector is just stuck