3M Stock Price Turns Lower On Attacks From The White House

Shares of 3M (NYSE:MMM) have turned lower today after the U.S. President Trump announced he invoked the Defense Production Act (DPA) to force the manufacturing giant to produce face masks.

Fundamental analysis: Trump blasts 3M over face masks

U.S. President Donald Trump blasted the manufacturing giant 3M today as his administration is trying to force the company to produce more face masks for the U.S. market. In his usual fashion, Trump used Twitter to voice his anger at 3M.

Yesterday, Trump invoked the Defense Production Act to force manufacturers sell their products to the US government if requested. This is the second time since the COVID-19 outbreak that Trump invoked the DPA, after the first order he signed last week was directed against General Motors (NYSE:GM)

The United States is in need of critical infrastructure to fight the COVID-19 outbreak, including ventilators and respirators.

Through the signed order, Trump authorized the Federal Emergency Management Agency (FEMA) to “acquire, from any appropriate subsidiary or affiliate of 3M Company, the number of N-95 respirators that the Administrator determines to be appropriate.”

White House has become increasingly agitated by 3M’s decision not to send millions of its N95 masks, produced in Singapore and intended for markets in Asia, to the US.

On the other hand, 3M hit back at Trump by saying that a request to stop exporting N95 masks could backfire and actually make the equipment less available in the United States.

Technical analysis: 3M stock turns negative

Shares of 3M opened around 1.5% lower today after gaining more than 3% yesterday. The 3M stock price currently trades 3.5% lower on the day, as it is threatening to return to recent multi-year lows.

Last week, the stock price touched the 200-MMA for the first time since 2009, which forced a rebound higher. However, the bulls have so far failed to build on this rebound and the price action looks like it wants to rotate lower again. Any close below the $120 mark would be a major bearish development.

Summary

Shares of 3M trade around 3.5% lower today after the U.S. President Trump invoked the DPA against the manufacturing giant, authorizing FEMA to acquire from 3M a number of N-95 respirators that the White House deems appropriate.