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3M Co MMM shares are trading lower by 2.4% to $94.67 Monday afternoon. The stock is trading lower after 3M Belgium said it is evaluating whether there are options to restart its idled PFAS manufacturing processes, as well as other options to further accelerate discontinuance of its PFAS manufacturing at the company’s Zwijndrecht facility.

PFAS (per- and polyfluoroalkyl substances) have been associated with environmental and health concerns. Governments and regulatory agencies have been increasingly scrutinizing PFAS manufacturing and usage. If 3M is considering restarting PFAS manufacturing or accelerating its discontinuance, it might be in response to regulatory pressure or environmental concerns.

This could result in potential legal costs, fines and reputational damage for the company, which can negatively impact the stock price.

What Else?

Several consumer goods stocks are otherwise volatile in recent sessions with concerns about future rate hikes following last Wednesday’s FOMC statement and lower-than-expected initial jobless claims data.

3M stock is also known for its dividend payments, and it is often considered by income-focused investors. When interest rates rise, fixed-income investments like bonds become more attractive in comparison to dividend-paying stocks.

This can lead some investors to shift their investments away from stocks like 3M, potentially putting downward pressure on its stock price.

What’s Going On?

The Federal Reserve last week maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting in a unanimous move.

The September dot plot reveals the median preference for the fed funds rate at the close of 2023 remains unwavering at 5.6%. This figure mirrors projections made back in June, hinting at the possibility of one more rate hike during either of the last two meetings this year…Read More

According to data from Benzinga Pro, MMM has a 52-week high of $133.91 and a 52-week low of $92.38.

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