Abbott Labs (NYSE: ABT ) stock is falling more than 4% after a St. Louis jury found its premature infant baby formula responsible for a potentially fatal bowel disease. As of this writing, ABT stock is trading around the $100 mark.
U.S. stock futures were higher this morning, with the Dow futures gaining around 150 points on Monday.
Shares of Abbott Laboratories and U.K.-listed Reckitt Benckiser both drop after a Missouri jury rules against the American healthcare company.
U.K. consumer-products giant Reckitt saw its share price slump after a jury awarded $495 million in a key baby-formula case.
Reckitt Benckiser Group PLC (LSE:RKT, ETR:3RB) shares tumbled 7.5% on Monday morning after a litigation decision in the US against Abbott Laboratories (NYSE:ABT) on Friday, where investors are reading across to the potential impact on the FTSE-listed company. Abbott was ordered to pay almost $500 million over allegations that it hid the risks around its premature infant formula feed, with the case alleging that the formula risks causing a potentially fatal bowel disease.
A jury found that Abbott Laboratories' specialized formula for premature infants caused an Illinois girl to develop a dangerous bowel disease, ordering the healthcare company to pay $495 million in damages.
A jury on Friday found that Abbott Laboratories' specialized formula for premature infants caused an Illinois girl to develop a dangerous bowel disease, ordering the healthcare company to pay $95 million in compensatory damages.
Abbott (NYSE: ABT) recently reported its Q2 results, with revenues and earnings exceeding our expectations. The company reported revenue of $10.4 billion and earnings of $1.14 on a per-share and adjusted basis, compared to our estimates of $10.3 billion and $1.10, respectively.
Healthcare stocks are generally good bets, thanks to a rapidly growing population of older adults in the U.S. and other developed economies. Abbott Laboratories is growing sales at a high-single-digit annual percentage and offers a quarterly dividend.
Abbott's diverse business and low beta value make it one of the safest dividend stocks you can own. Home Depot doesn't expect much growth this year, but that likely won't remain a long-term problem.
Abbott (ABT) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
The concept of safe stocks arguably couldn't be timelier. Recently, the technology sector encountered significant turmoil, with many experts questioning the sustained success of artificial intelligence and related innovations.