What's going on?

3M, the maker of Post-It Notes and Scotch tape, said that it�s going to make less money this year than it thought it would - and that next year it would also struggle to meet investors� expectations. The stock sold off 6% - a big move for one of America�s largest companies.

What does this mean?

When the global economy slows down, companies like 3M feel it. That�s what they told investors on Tuesday. It�s estimated that about two-thirds of 3M�s business comes from international markets; so as China and emerging markets slow down, so does 3M. Add in the stronger dollar (as the company is US-based) and sales for 3M become sluggish (because overseas sales are worth less when translated back into US dollars). �

Why should I care?

The Bigger Picture: It�s a potentially troubling signal for the world�s economy. 3M makes many different products for various industries (everything from hospital supplies to household goods) and, therefore, has a broad view of many parts of the global economy. It might be a sign of things to come when such a big and diverse company says that they are being hurt by the global economic slowdown. For the Stock: This is 3M�s second �profit warning� in as many months. Investors tend to get tired of a company repeatedly saying it�s going to make less than expected even if it�s the broader economy that is to blame. The stock got smacked today and it�s certainly conceivable that it could struggle going forward if the macroeconomic situation continues.