3M Stock Skyrockets After Beat-and-Raise Report

Major U.S. equities indexes saw significant gains on the final day of a volatile trading week after the latest Personal Consumption Expenditure (PCE) data revealed price increases ticked downward in June.

The PCE is a preferred gauge of inflation monitored by the Federal Reserve, so the continuing cooldown in price pressures supports the expectation that the central bank will cut interest rates in the coming months.

The S&P advanced 1.1% in Friday’s session. The tech-heavy Nasdaq was up 1.0%, while the Dow jumped 1.6%, boosted by outsized gains from industrial conglomerate 3M (MMM).

In addition to notching the top performance among the 30 components of the Dow, 3M shares led the way for the S&P 500, skyrocketing 23.0% to reach their highest level since 2022. The leap higher for the stock came after the maker of Scotch tape, Scotch-Brite, and other well-known brands reported better-than-expected second-quarter profit and sales while boosting its forecasts for the full year. CEO William Brown, who took the reigns of 3M at the beginning of May, said the conglomerate is focused on organic revenue growth following the settlement of class-action lawsuits and the spinoff of its health care unit Solventum (SOLV).

Shares of Mohawk Industries (MHK) soared 19.5% after the residential and commercial flooring manufacturer beat earnings per share (EPS) forecasts for the second quarter and guided third-quarter earnings above consensus estimates. Following the strong quarterly results, Bank of America upgraded Mohawk stock from “underperform” to “buy” while significantly hiking its price target. Analysts expressed confidence in Mohawk’s ability to continue expanding its margins even as it navigates a difficult macroeconomic environment.

Cable and internet provider Charter Communications (CHTR) also outperformed top- and bottom-line expectations in its second-quarter earnings release, and its shares jumped 16.6%. Although Charter reported a decline in broadband subscribers amid stiff competition, the company achieved growth in rural markets, driven by its expansion in mobile phones as well as government programs aiming to improve internet access in more remote areas.

Dexcom (DXCM) shares suffered the steepest losses of any S&P 500 stock, plummeting 40.7% after the maker of glucose monitoring devices for patients managing diabetes missed second-quarter revenue estimates and cut its sales guidance for the current quarter and the full year. According to the company, a reshuffling of its sales team, slower-than-expected new customer additions and lower revenue per user contributed to the weak results and a more restrained outlook.

Biogen (BIIB) shares sank 7.2% after regulators in Europe rejected the Alzheimer’s treatment Leqembi developed by the biotechnology firm in coordination with Japan-based pharmaceutical company Eisai (ESAIY). Although the U.S. Food and Drug Administration (FDA) approved Leqembi last year, the European Medicines Agency’s human medicines committee did not recommend granting marketing authorization for the drug, arguing that the risk of serious side effects outweighs the treatment’s potential benefits. Eisai’s American depositary receipts (ADRs) dropped 12.9% on the day.

Shares of aerospace and defense contractor L3Harris Technologies (LHX) fell 5.7%. Although the company beat second-quarter profit estimates and boosted its full-year guidance, citing strong weapons demand amid elevated global tensions, Deutsche Bank downgraded the stock to “hold,” pointing to a high valuation following year-to-date gains heading into Friday’s session.