Why PG&E, Dorman Products, and AngloGold Ashanti Slumped Today
Wall Street had a good session on Monday, as major benchmarks climbed toward record highs. Investors remained confident about the market's long-term trajectory, especially given their expectations that the Federal Reserve will do whatever it takes to keep the economy from slipping into a recession. Earnings season also kept going forward, but although many company reports have been positive, there was still some bad news for shareholders to digest. PG&E (NYSE: PCG), Dorman Products (NASDAQ: DORM), and AngloGold Ashanti (NYSE: AU) were among the worst performers. Here's why they did so poorly.
Shares of PG&E plunged another 24% as the utility fought to sustain and restore power for California customers in the wake of another round of massive fires. Wildfires are currently spread across the state, and PG&E has had to cut power to large numbers of customers in an effort to avoid having its power lines potentially spark new blazes. Even efforts to restore power might prove to be too little, too late for investors. With the utility already being cited as possibly having caused the Kincade fire in the northern part of California, analysts are raising the likelihood that PG&E's bankruptcy plan might not result in any recovery for current shareholders.
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Source Fool.com
