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Avoid These 2 Dow Jones Stocks That Fell More Than 10% in Q3

Published 10/14/2021, 10:29 AM
Updated 10/14/2021, 11:02 AM
© Reuters.  Avoid These 2 Dow Jones Stocks That Fell More Than 10% in Q3

The major stock market indexes are expected to remain volatile for at least the near term, given inflation concerns and a continuing rise in COVID-19 cases that threatens the economy’s recovery. Furthermore, a proposed infrastructure spending bill in Congress is being delayed. So, given current market volatility, we think Dow Jones stocks Caterpillar (CAT) and 3M Company (NYSE:MMM), which retreated more than 10% in price in the third quarter, are best avoided now. Read on.The Dow Jones Industrial Average ended a volatile week last Friday, ending the week close to flat on October 8. The benchmark slipped 8.69 points, or less than 0.1%, to 34746.25. The market volatility is being driven primarily by rising inflation concerns and Congressional negotiations on the U.S. debt ceiling. In addition, U.S. consumer confidence fell to a seven-month low in September, owing to rising COVID-19 cases that threaten the global economic recovery.

A much-awaited infrastructure bill is expected to boost the U.S economy and benefit the industrial sector. However, the U.S. House of Representative delayed its planned vote on the bipartisan bill as democrats failed to come to an agreement.

Given the market volatility and delays in eagerly anticipated government spending, we think fundamentally weak Dow Jones stocks Caterpillar Inc. (NYSE:CAT) and 3M Company (MMM), which declined by more than 10% in price in the third quarter, are best avoided now.

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