Stocks To Watch: Johnson & Johnson [NYSE: JNJ] is in the green in pre-market trading. At the time of writing, this stock was up by 2.93% to trade at $132.90. This follows positive news from the company about its baby-powder. The company has stated that tests had found no asbestos in its FDA-tested baby powder.
Earlier in the month, the company had announced that a government test on its baby-powder had tested positive for asbestos. The company has now stated that after sending the same samples to other laboratories, they had found no traces of asbestos. The results that had turned positive for asbestos were done by AMA Analytical Services Inc, a company that is run by a person who has previously been an expert witness for J&J in court.
In spite of the announcement by Johnson & Johnson, the FDA has stated that it stands by the results it got from the AMA lab. The FDA further stated that the results from Johnson & Johnson were not surprising. They stated that contaminants are not dispersed in a uniform manner in the talc. The FDA also stated that different testing methods can lead to variations in results.
Last week, the FDA posted the report about Johnson & Johnson’s baby powder online. The report indicated that the lab found 6 chrysotile asbestos fibers in a sample weighing less than a gram. According to the World Health Organization asbestos has no safe levels. It is known to trigger cancer and even though it may not happen immediately, it can still happen later in life.
Looking at its price action, Johnson & Johnson is bullish pre-market. In Tuesday’s trading session, this stock was largely flat. It opened at $129.70 and traded between highs of $129.97 and lows of $128.56 before closing the day at $129.12. In the day, the key level to watch will be yesterday’s low of $128.56. Opening above yesterday’s low would be a signal of a possible uptrend in the short-term.
About Johnson & Johnson
Johnson & Johnson researches, makes and sells pharmaceutical, consumer and medical devices all across the world. The company has its headquarters in Brunswick, New Jersey.