Procter & Gample (NYSE: PG) and 3-M (NYSE: MMM), both big multinationals are not exactly moving in the same direction raising questions about the global economy, the jobs front, and the U.S. dollar.



Chart Courtesy of StockCharts.com

3-M made a new high on 12-28, while P & G has been struggling of late. That's significant since both are big multinational companies who tend to rally with a weak dollar.

The new high in 3-M is most interesting, as it suggests that investors are betting on an industrial recovery that seems to be strong enough to withstand a stronger dollar.

For P & G, though, the news is not as good. If the market is willing to bet on more construction and technology but not as much on toothpaste and soap, it suggests that the market is betting against the consumer.

And that has broad implications. For one thing, consumers need jobs. And if those, especially in the U.S. aren't likely to find steady work, it could affect their purchasing patterns.

That sets up a scenario where contruction and expansion of the Chinese economy could boost 3-M more than P & G. To be sure, P & G may have found support at its 50-day moving average. And if it can rally from here, it may be a sign that the dollar rally could be close to ending.

That means that the action in the big multinationals is worth watching very carefully. Something to think about as the new year approaches.

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