Shares across multiple sectors swung midday as investors reacted to a mix of regulatory decisions, corporate leadership changes, updated forecasts, and deal activity. Utility stocks fell sharply after California lawmakers blocked a wildfire-related liability proposal, while consumer tech and defense names moved on reports about management transitions and earnings guidance. Energy prices climbed after the U.S. and Iran exchanged strikes, lifting select oil and gas equities.
Key takeaways
- Utilities slide: PG&E shares dropped about 19% and Edison International fell roughly 24% after California lawmakers blocked a proposal limiting payouts from wildfire-related utility liability, prompting multiple Wall Street downgrades.
- Apple weak on leadership report: Apple shares eased nearly 2% after Bloomberg reported the head of the App Store and product events would step down, ahead of a planned leadership transition.
- Forecast lift supports SAIC: Science Applications International shares rose about 4% after the company increased its annual adjusted earnings and revenue outlook.
- Energy firms gain: Oil prices rose more than 2% after the U.S. and Iran exchanged strikes for the first time since July, helping lift several large oil and gas names.
- M&A and CEO changes ripple through markets: Aon slid after agreeing to buy USI Insurance Services, while Herbalife fell on CEO succession changes; GameStop climbed on preliminary results.
What drove the move
Wildfire liability decision hits utilities. Shares of PG&E and Edison International tumbled after California lawmakers blocked a proposal that would have capped the amount individuals could seek from utility companies in cases where equipment ignited wildfires. After the vote, several analysts downgraded the stocks, with Mizuho arguing that investors are better positioned in utilities with fewer wildfire liability exposures.
Apple declines on App Store leadership change. Apple shares slipped nearly 2% after Bloomberg reported that the leader of the company’s App Store and product events would step down. Bloomberg said Phil Schiller would remain at Apple and work on other, unspecified initiatives, with the leadership adjustment arriving ahead of John Ternus taking over as CEO after Tim Cook.
SAIC lifts guidance following strong quarter. Science Applications International rose about 4% after increasing its full-year forecast. The defense contractor raised its expected adjusted earnings range to $10.65 to $10.75 per share, compared with a prior outlook of $9.90 to $10.10. The company also increased its revenue outlook to $7.2 billion to $7.3 billion, above the prior range of $7.0 billion to $7.2 billion.
Howmet drops on turbine supply plan. Howmet Aerospace shares fell more than 8% after SpaceX CEO Elon Musk said the company would cast turbine blades and vanes in-house to accelerate the rollout of natural gas turbines. The statement linked to the expected timeline of turbine deployment, adding to market concerns about supply chain implications for third-party components.
Herbalife weakens on management transition. Herbalife shares fell about 13% after the company announced CEO Stephan Gratziani will depart effective Oct. 31, with finance chief John DeSimone serving as interim CEO. Despite the leadership change, Herbalife reaffirmed full-year guidance for revenue growth of 2.5% to 5.5%, slightly below FactSet consensus of 4.4%.
Market reaction across major corporate headlines
Aon retreats after deal agreement. Aon shares declined more than 7% after agreeing to acquire USI Insurance Services from KKR for $17 billion. Aon said the merger would create a leading U.S. platform focused on middle-market customers, but investors appeared to weigh execution risk and deal valuation against near-term momentum in the insurance brokerage industry.
Energy shares rise as oil prices firm. U.S. oil prices gained more than 2% after the U.S. and Iran exchanged strikes in the Middle East for the first time since July. The move boosted several energy equities, including Halliburton, Chevron, Exxon Mobil, Valero Energy, and Occidental Petroleum, which were described as rising roughly 1%.
Eli Lilly eases as it expands biotech pipeline. Eli Lilly shares fell more than 1% after the company said it will acquire Merida Biosciences, a privately held biotech firm, for $2.9 billion in cash. Lilly said Merida’s experimental biologic therapies are designed to target autoimmune diseases such as Graves’ disease and thyroid eye disease, supporting Lilly’s focus on immunology.
GameStop climbs on preliminary quarter. GameStop shares rose about 3% following preliminary second-quarter results. The company expects net sales to decline year over year, but projected that both operating and net income would increase versus the same period a year ago. GameStop said net income will include about $238 million of gains related to holdings tied to eBay, partially offset by an approximately $75 million loss on digital assets and related receivables.
Pinterest drops after CFO exit announcement. Pinterest shares fell about 6% after the company said its CFO, Julia Brau Donnelly, will leave at the end of October. The company named Vikram Naidu, vice president for finance and business operations, as interim financial officer.
Deere and AGCO gain on upgrade and farm outlook. Deere and AGCO rose more than 3% after Baird upgraded the stocks to outperform from neutral. Baird analysts described the companies as a way to gain exposure to potential higher demand for agricultural equipment, tied to farmers benefiting from wider profit margins as crop prices stay elevated.
Bigger picture: what investors are watching next
Midday moves reflected how quickly markets are repricing risk and expectations around regulation, corporate leadership, and guidance. The utility selloff underscores investor sensitivity to wildfire liability frameworks, while Apple’s move highlights how leadership shifts ahead of CEO transitions can become immediate price catalysts. For oil and gas, geopolitical escalation continues to feed directly into crude prices, influencing sentiment even before company-specific news.
Investors will likely monitor upcoming earnings releases, management updates tied to leadership transitions, and additional commentary on guidance and deal execution—along with continued developments in U.S.-Middle East tensions that can keep a short-term bid under energy prices.
