Several major companies saw significant stock movements as investors reacted to earnings updates, leadership changes, acquisitions, regulatory developments, and shifts in energy markets.
PG&E and Edison International Fall After Wildfire Liability Vote
Shares of Pacific Gas & Electric and Edison International declined sharply after California lawmakers blocked a proposal that would have limited the amount individuals could seek from utility companies whose equipment contributed to wildfires.
PG&E shares fell 19%, while Edison International dropped 24%. Following the vote, multiple Wall Street analysts downgraded the stocks, with some noting that investors may prefer utility companies with fewer wildfire liability concerns.
Apple Shares Drop Ahead of Leadership Transition
Apple shares declined nearly 2% after reports that Phil Schiller, the executive overseeing the App Store and product events, would step away from those responsibilities.
Schiller will remain at Apple and focus on other initiatives, while the leadership transition comes shortly before John Ternus is expected to take over as CEO, succeeding Tim Cook.
Science Applications International Raises Forecast
Science Applications International shares gained 4% after the defense contractor increased its full-year outlook following stronger-than-expected quarterly sales.
The company now expects adjusted earnings of $10.65 to $10.75 per share, compared with its previous forecast of $9.90 to $10.10 per share. Revenue expectations were also raised to between $7.2 billion and $7.3 billion.
Howmet Aerospace Falls After SpaceX Turbine Plans
Howmet Aerospace shares dropped more than 8% after Elon Musk said SpaceX plans to produce turbine blades and vanes internally to accelerate natural gas turbine production.
The announcement raised concerns among investors about potential competition for Howmet’s aerospace and industrial turbine component business.
Herbalife Shares Drop After CEO Departure
Herbalife shares declined 13% after the company announced that CEO Stephan Gratziani will leave effective October 31.
Finance chief John DeSimone will serve as interim CEO. Herbalife maintained its full-year outlook, expecting revenue growth between 2.5% and 5.5%.
Aon Drops Following $17 Billion USI Acquisition
Aon shares fell more than 7% after the insurance broker agreed to acquire USI Insurance Services from KKR for $17 billion.
Aon said the acquisition will create what it described as a leading U.S. middle-market insurance platform.
Energy Stocks Rise as Oil Prices Increase
Energy stocks moved higher after U.S. oil prices gained more than 2% following renewed tensions between the United States and Iran.
Shares of Halliburton, Chevron, Exxon Mobil, Valero Energy, and Occidental Petroleum all increased roughly 1% as investors reacted to concerns about potential supply disruptions.
Eli Lilly Continues Acquisition Strategy
Eli Lilly shares slipped more than 1% after the company announced plans to acquire Merida Biosciences for approximately $2.9 billion.
The acquisition strengthens Lilly’s immunology pipeline with experimental treatments targeting autoimmune conditions, including Graves’ disease and thyroid eye disease.
Pinterest Shares Decline After CFO Change
Pinterest shares fell 6% after the company announced that Chief Financial Officer Julia Brau Donnelly will leave at the end of October.
Vikram Naidu, Pinterest’s vice president of finance and business operations, was appointed interim financial officer.
GameStop Shares Rise After Preliminary Results
GameStop shares gained 3% after the company released preliminary second-quarter financial results.
Although sales are expected to decline year over year, GameStop expects operating income and net income to improve compared with the same period last year. Results include gains tied to eBay holdings and losses related to digital assets.
Deere and AGCO Benefit From Upgrade
Shares of Deere and AGCO rose more than 3% after Baird upgraded both companies to outperform from neutral.
Analysts believe agricultural equipment makers could benefit from improving farmer profitability and increased demand for new equipment as crop prices strengthen.
