Johnson & Johnson's stock surge lifts the Dow into positive territory after baby powder tests show no asbestos

Shares of Johnson & Johnson JNJ, -0.60% rallied 2.5% in midday trading, enough to lift the Dow Jones Industrial Average DJIA, -0.52% into positive territory, after the consumer and healthcare products company said new tests on baby powder from a recalled bottle found no asbestos. The stock’s $3.24 price gain added 22 points to the Dow’s price, which was up 20 points. J&J said late Tuesday that it conducted 15 new tests on the same bottle that a previous test by the U.S. Food and Drug Administration found “sub-trace levels” of asbestos, and found none. And an additional 48 laboratory tests, conducted by two third-party laboratories, on the single lot of baby powder that the company recalled on Oct. 18 confirmed that the powder did not contain asbestos. The stock had tumbled 6.2% on Oct. 18, and the stock was still down 2.7% since the recall. “Rigorous and third-party testing confirms there is no asbestos in Johnson’s Baby Powder,” the company said in a statement. “We stand by the safety of our product.” The stock has gained 2.6% year to date, while the Dow Jones Industrial Average DJIA, -0.52% has advanced 16.1%.

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