Key Takeaways

• FirstEnergy said it has agreed to a $100 million settlement with the SEC to resolve charges from a bribery scandal.
• The Akron, Ohio-based utility was accused of paying some $60 million in bribes to state politicians for favorable legislation for FirstEnergy’s nuclear plants.
• Several politicians, former FirstEnergy executives, regulators, and lobbyists have been charged or sentenced to prison for their roles in the largest bribery scheme in Ohio history.

Ohio-based electricity provider FirstEnergy (FE) said that it has reached a $100 millin settlement into the Securities and Exchange Commission’s (SEC) investigation into the company’s bribery scandal.

“We are pleased to have reached a resolution with the SEC as we continue to turn a new chapter,” FirstEnergy Chief Executive Officer (CEO) Brian X. Tierney said. The company said in a previous quarterly report that it had set aside $100 million in anticipation of the settlement.

Settlement Follows Ohio’s Largest Corruption Scandal

The Akron-based utility was accused of paying some $60 million in bribes to Ohio politicians for favorable bailout legislation for its nuclear plants.

Several politicians, former FirstEnergy executives, regulators, and lobbyists have been charged or sentenced to prison for their roles in the largest bribery scheme in Ohio history.

The scandal also had other implications for FirstEnergy, which in April 2023 lost its naming rights deal for the stadium housing the NFL’s Cleveland Browns amid public pressure over the scandal. The venue reverted to its original moniker, Cleveland Browns Stadium, last season before being renamed following a deal with Huntington Bank (HBAN) earlier this month.

FirstEnergy shares edged lower to $44.01 about 45 minutes after markets opened Friday but have risen 20% this year.

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Shares Tumbled More Than 9% in Extended Trading on Thursday

Key Takeaways

• Adobe shares moved sharply lower in extended trading on Thursday after the digital multimedia software maker issued a disappointing current-quarter outlook that overshadowed better-than-expected results for its fiscal third quarter.
• The stock sits poised to break down below the lower trendline of an ascending triangle pattern, a move that could start a new trend lower.
• Investors should watch important support levels on Adobe’s chart at $500, $439, $386, and $333, while keeping an eye on the $550 area during a countertrend move.

Adobe (ADBE) shares tumbled in extended trading on Thursday after the digital multimedia software maker issued a disappointing current-quarter outlook that overshadowed better-than-expected results for its fiscal third quarter.

Although the San Jose, California-based company’s shares have gained around 28% over the past three months, they remain underwater for the year as enterprise customers continue to spend cautiously on premium software products against a backdrop of economic uncertainty and high interest rates.

Below, we’ll take a closer look at Adobe’s chart and use technical analysis to identify important post-earnings price levels to watch out for.

Ascending Triangle Breakdown

Adobe shares have oscillated within an ascending triangle since late February, with the stock’s price nudging above the pattern’s top trendline on the highest trading volume since late June ahead of the company’s quarterly results. Moreover, the 50-day moving average recently crossed above the 200-day MA to form a golden cross, a chart signal indicating a new uptrend.

Despite the bullish technicals, the shares sit poised to break down below the triangle’s lower trendline on Friday, a move that could start a new trend lower. The stock fell 9.1% to $533 in after-hours trading Thursday.

Watch These Key Support Levels

If Adobe shares continue to see post-earnings weakness, investors should monitor several key support areas on the chart.

The first sits around $500, a location on the chart where the shares could find support from the psychological round number and a horizontal line connecting multiple peaks and troughs from June 2023 to August this year.

A close below this level could see the stock decline to the $439 area, where investors may look for buying opportunities near a pre-gap consolidation period during the stock’s impulsive move higher between May and June last year. This region also closely corresponds with the prominent May 2024 swing low.

The next lower level to watch lies at $386, an area that may encounter support near several peaks that formed on the chart from early February to late April last year.

Finally, a longer-term correction in the stock could see a drop to the $333 area, where the price would likely find buying interest around the May 2023 swing low. This level also aligns with a measured move price target that calculates the distance between the ascending channel’s two trendline in points and subtracts that amount from the pattern’s lower trendline. ($550 – $217 = $333)

Key Resistence Level to Monitor

During a countertrend move in Adobe shares, investors should keep a close eye on the $550 area, where the price may face selling pressure on retests of the ascending channel’s lower trendline.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• GE Vernova shares closed at their highest level since being spun off from General Electric in April.
• The company said its offshore wind division should be profitable in the fourth quarter.
• Strength in its power and electrification segments led the company to reaffirm its full-year guidance.

GE Vernova (GEV) closed at a record high Thursday after the recent General Electric spin-off reaffirmed its full-year financial guidance. 

The energy company said Thursday at a Morgan Stanley investing conference that it expects revenue on the higher end of its previously disclosed $34 billion to $35 billion range, driven by strength in its power and electrification segments. Its offshore wind segment, which it projects to post a loss of $300 million in the third quarter, should be profitable by the fourth quarter. 

Record Close Reached Thursday

Shares of GE Vernova climbed 2.9%, reversing an early-session decline, to close at $215.27.

The company began trading in April after General Electric spun off its energy division from the aerospace division, with the entities becoming GE Vernova and GE Aerospace (GE), respectively. GE Vernova’s shares are up more than 50% since their trading debut. 

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KEY TAKEAWAYS

• Norfolk Southern fired CEO Alan Shaw over a relationship with the freight railroad’s legal chief.
• The company said Shaw had been fired because it found he broke company policies “by engaging in a consensual relationship” with Chief Legal Officer Nabanita Nag, who also has been let go.
• Shaw, who was terminated “for cause, effective immediately,” will be succeeded by CFO Mark George. 

Norfolk Southern (NSC) has fired Chief Executive Officer (CEO) Alan Shaw over a relationship with the freight railroad’s top legal officer.

The company had been investigating allegations of misconduct against Shaw, and said Wednesday he had been fired because it found he broke company policies “by engaging in a consensual relationship” with Chief Legal Officer Nabanita Nag, who also has been let go.

Shaw Will Be Succeeded By CFO Mark George

Shaw, who was terminated “for cause, effective immediately,” will be succeeded by Chief Financial Officer (CFO) Mark George. Nag also was terminated from her other roles as executive vice president corporate affairs and corporate secretary.

Shaw, who joined Norfolk Southern in 1994, worked his way up to marketing chief before taking charge as CEO in May 2022. But the company was involved in some controversies under his watch.

In April, Norfolk Southern announced a $600 million settlement to class-action litigation over a February 2023 train derailment in East Palestine, Ohio. And in July, the company was accused by the U.S. Department of Justice (DOJ) of illegally delaying Amtrak trains along a route from New York City to New Orleans.

Norfolk Southern shares slipped 1% to $250.86 soon after markets opened Thursday. They are up 6% this year.

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Key Takeaways

• First Solar shares jumped 15% on Wednesday, leading a broader rally for clean energy stocks, amid investor optimism about the sector in the wake of the previous night’s presidential debate between Kamala Harris and Donald Trump.
• Wednesday’s jump from a saucer pattern’s neckline occurred on the highest share turnover since late June and saw the price close above the closely-watched 50-day moving average, indicating conviction behind the buying.
• Investors should watch important overhead price levels at $235, $265, and $300, while monitoring key support around $215 during retracements.

First Solar (FSLR) shares soared on Wednesday, leading a broader rally for clean energy stocks, amid investor optimism about the sector in the wake of the previous night’s presidential debate between Kamala Harris and Donald Trump.

During the debate, Trump said Harris would “go back to solar,” if she wins the presidency, adding that he’s “a big fan of solar.” While Harris didn’t address solar energy during the debate specifically, she has been a proponent of the Biden Administration’s Inflation Reduction Act, which includes tax credits for rooftop solar and other clean energy initiatives. 

Growing optimism towards solar stocks comes at a welcome time for First Solar, which has seen its shares track mostly sideways over the past 18 months as elevated interest rates have weighed on demand, making it more expensive to finance and install solar panels and related energy products.

Below, we’ll take a closer look at First Solar’s chart and use technical analysis to point out important price levels that investors should watch out for.

Saucer Pattern’s Neckline Providing Support

First Solar shares broke out from a saucer in late May on above-average volume before topping out in mid June.

However, since that time, the stock retraced as much as 36% but has found support around the pattern’s neckline.

More recently, Wednesday’s jump from this important technical area occurred on the highest share turnover since late June and saw the price close above the closely-watched 50-day moving average, indicating conviction behind the buying. The stock rose 15% Wednesday to close at $239.84.

Overhead Price Levels to Watch

Looking ahead, investors should keep their eyes peeled on three key overhead price levels.

The first sits at $235. Although the stock closed slightly above this level on Wednesday, sellers could still seek exit points around a trendline that connects a range of narrow consolidation between early July and late August.

A decisive breakout above this level could power a move up to the $265 level, a location on the chart where the shares may encounter resistance near a series of comparable trading levels throughout June.

Further buying may see bulls make another attempt at the stock’s 2024 high around $300. Interestingly, this area also aligns with a measured move price target that calculates the distance from the saucer pattern’s low to neckline and adds that amount to the breakout point. For example, adding $85 to $215 projects an upside target of $300.

Retracement Level to Monitor

If the stock rereats, investors should monitor the $215 level, an area the shares are likely to attract strong support on another retest of the saucer pattern’s neckline, which has flipped from resistance into support.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• First Solar led gains on the S&P 500 Wednesday as solar stocks got a boost on the heels of Tuesday’s presidential debate between former President Donald Trump and Vice President Kamala Harris.
• During the debate, Trump said Harris would “go back to solar,” if she wins the presidency, and added he’s “a big fan of solar,” according to an ABC News transcript. 
• First Solar shares popped more than 15% Wednesday, while SolarEdge Technologies gained over 8%, and Enphase Energy added nearly 6%.

First Solar (FSLR) led gains on the S&P 500 Wednesday as solar stocks got a boost on the heels of Tuesday’s presidential debate between former President Donald Trump and Vice President Kamala Harris.

During the debate, Trump said Harris would “go back to solar,” if she wins the presidency, adding that he’s “a big fan of solar,” according to an ABC News transcript. 

First Solar shares popped more than 15% Wednesday, while SolarEdge Technologies (SEDG) gained over 8%, and Enphase Energy (ENPH) added nearly 6%.

Other green energy stocks also advanced as investors weighed the possibility of Harris continuing the Biden administration’s climate policies, with Polymarket still predicting a Trump win and PredictIt increasing its likelihood of a Harris one.

While Harris didn’t address solar energy during the debate specifically, she has been a proponent of the Biden Administration’s Inflation Reduction Act, which includes tax credits for rooftop solar and other clean energy initiatives. 

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Key Takeaways

• Arm Holdings was awarded its latest “Top Pick” rating by Morgan Stanley, which cited demand for the chip designer’s artificial intelligence (AI) products.
• The Morgan Stanley analysts pointed to Arm’s part in the technology industry shift to edge AI.
• Morgan Stanley has an “overweight” rating on Arm’s U.S.-traded shares, with a $175 price target.
• Arm’s stock soared Wednesday after the release of the report.

Arm Holdings (ARM) shares jumped Wednesday after Morgan Stanley analysts named the chip designer “Our New Top Pick” because of its reach into artificial intelligence (AI) products.

The analysts wrote Wednesday that they see Arm “as an important part to the shift to edge AI,” which is the use of AI data closer to its source, rather than centrally located in a cloud computing facility or data center. The Morgan Stanley research report pointed to this week’s launch of the Apple (AAPL) iPhone 16 and Arm’s architecture used in the phone’s A18 processor.

The analysts called the company their “favored play” on the emerging edge AI technology, adding that they expect mobile devices will fuel the initial upside for this deployment of AI, followed by infrastructure and autos.

Arm’s Key Growth Drivers

They also noted that Arm’s key growth drivers include increased use of the company’s v9 central processing unit (CPU) designs, more custom silicon demand, and greater use of CPU extensions.

Morgan Stanley rates the stock as “overweight,” with a price target of $175, which is more than 25% above its current level.

Arm Holdings American depositary receipts (ADRs), which have nearly doubled in value so far this year. Wednesday, were up 8.8% at $138.40 with about half an hour left in Wednesday’s session

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Key Takeaways

• McDonald’s is introducing a new format at a few U.S. stores where digital ordering stations will take cash and give change, bypassing the register completely.
• There isn’t yet a plan for a full roll-out of the new system, the company said.
• Cashiers at those stores will be redeployed to other jobs like curbside pickup and catering to table service.

McDonald’s (MCD) is introducing a new offering in some U.S. stores, with digital ordering stations now taking cash and giving change, bypassing the register completely.

The new kiosks will be deployed in a “small number of U.S. franchisees,” amounting to less than 2% of the total, McDonald’s USA said. There isn’t a plan for a full roll-out of the kiosk-based system, the company said.

Cashiers at those stores will be redeployed to other jobs like curbside pickup and catering to table service, according to the company. The news was first reported by Bloomberg.

Franchisees Would Improve ‘Speed, Accuracy’ With Digital Ordering

Instead of displaying a full menu, screens behind the counter at the fast-food giant using the new format will highlight just a few items. Customers will be encouraged to order at the kiosks or on the mobile app, allowing franchisees to improve “speed and accuracy,” McDonald’s USA said.

McDonald’s in late July posted a disappointing second-quarter earnings report as customers cut back spending amid inflation.

McDonald’s shares, down more than 1% in morning trading, are a few percentage points in the red so far this year.

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Key Takeaways

• Vice President Kamala Harris and former President Donald Trump faced off in their first debate Tuesday.
• The candidates reiterated their economic platforms and didn’t introduce new proposals.
• They sparred on economic topics including tariffs, inflation and student loans.

Vice President Kamala Harris and Former President Donald Trump met for the first time as presidential candidates Tuesday, and economic issues were a central topic of debate.

Investors and other market watchers tuned in as the pair debated for an hour and a half in Philadelphia. The economy was the first topic of the night, and both took the opportunity to repeat their platforms.

Here’s how the candidates sparred over three key economic topics Tuesday night.

Tariffs

Republican candidate Donald Trump doubled down on his tariffs plan at the beginning of the debate. 

Trump has called for a broad 20% tariff on all foreign goods and tariffs of 60% or higher on Chinese products. Most economists say tariffs would damage the economy more than they would help since merchants would pass the cost of tariffs along to consumers and give domestic manufacturers cover to raise prices.

He argued his tariffs would take in hundreds of billions of dollars and not cost the American people anything.

“Other countries are going to finally, after 75 years, pay us back for all that we’ve done for the world,” Trump said. “And the tariff will be substantial.”

For her part, Harris said the tariffs would equate to a “sales tax” and said it would cost the average person more money. She said his policies on trade with other countries put the economy at risk during his presidency.

“Well, let’s be clear that the Trump administration resulted in a trade deficit, one of the highest we’ve ever seen in the history of America,” Harris said. “He invited trade wars.”

Inflation

Each candidate blamed their opponent for inflation.

The cost of living has risen significantly since the start of the pandemic, up 21% on average, according to the Consumer Price Index. At the same time, wages grew more than 23%, according to the Bureau of Labor Statistics.

Economists largely say inflation was spurred by constraints in the supply chain during the pandemic and, to a lesser extent, relief programs such as stimulus checks enacted by former President Trump and his successor, President Joe Biden.

Trump said there was “virtually no inflation” during his presidency (prices rose 7.5% over the time he was in office) and inflation has been a disaster for people of every class. For her part, Harris laid out her economic policies and said Trump’s proposals would increase inflation.

Student Loans

Harris has supported Biden’s program of student loan debt forgiveness for federal borrowers, which has forgiven $168.5 billion in student debt, with other proposed relief blocked or delayed by Republican-led legal challenges. The legal challenges to these have left students in limbo as the cases wind their way through the courts.

While student loans weren’t a main focus of the debate, Trump did bring up Supreme Court rejections of Biden’s loan forgiveness plans. “So all these students got taunted with this whole thing. And how unfair that would have been, part of the reason they lost, to the millions and millions of people that had to pay off their student loans. They didn’t get it for free.”

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Key Takeaways

• The first presidential debate between Vice President Kamala Harris and former President Donald Trump is scheduled for 9 p.m. ET on Tuesday.
• Tuesday’s debate may not reshape the race the way June’s debate between Trump and President Joe Biden did. Nonetheless, market participants will be sensitive to each candidate’s performance and how it affects their chances come November.
• Meanwhile, a Comerica analysis found the performance of the S&P 500 between August and October has predicted the outcome of each presidential election since 1984.

Investors turned their attention to Philadelphia on Tuesday afternoon, as Vice President Kamala Harris and former President Donald Trump prepared on Tuesday to square off in their first presidential debate ahead of November’s election. 

The two are expected to spar on such issues as inflation, trade policy, taxes, and student loan debt. The debate, hosted by ABC, and will air and stream starting at 9 p.m. ET. 

How Could Tuesday’s Debate Impact Markets?

Tuesday’s debate may not bring new policy proposals, but it will give investors a fresh opportunity to assess how different the race is now that Harris has replaced President Biden atop the Democratic ticket.

June’s debate between Trump and President Biden, then the presumptive Democratic nominee, completely reshaped the race after Biden’s performance amplified calls for him to suspend his re-election campaign.

The resultant uncertainty was evident on Wall Street the next day. Stocks—including shares of Trump Media and Technology Group (DJT), owner of Trump’s social media platform Truth Social—rose toward record highs as markets digested Trump’s victory and an inflation report that showed price pressures abating. Both DJT and the S&P 500, however, gave up their early gains to close in the red. 

Tuesday’s debate may not generate the same drama. Still, market watchers will no doubt be sensitive to each candidate’s performance and how it affects their chances of winning in November. 

How Will the Election Results Affect Markets?

While there’s more to stock performance than who’s in the White House, historical evidence suggest that one-party rule in Washington is not optimal for markets. 

Historically, the S&P 500 has performed best with a Democrat in the White House, Democrats controlling the Senate, and Republicans controlling the House of Representatives, according to an analysis by Comerica Wealth Management. Under that configuration, the S&P 500 has returned an average of 15.7% a year.

The next-best performing configuration (average return of 13.7%) is the inverse: Republican control of the White House and Senate, and Democrats running the House. Granted, the S&P 500 has still performed relatively well when one party has helmed all three offices—with a 12.9% average return under Republicans and a 9% average return under Democrats. 

A divided Washington next year, in which the president must contend with at least one hostile legislative body, might revive debates about the debt ceiling, adding another element of uncertainty to markets.

The makeup of Congress next year will also likely determine what provisions of Trump’s Tax Cuts and Jobs Act (TCJA) will be extended past 2025. The Congressional Budget Office has estimated making the TCJA’s expiring provisions permanent—as Trump has proposed—would cost about $4 trillion over the next decade. Trump’s other tax proposals are generally considered business-friendly, but though economists generally believe his proposed tariffs would hurt multinational corporations. 

Democrats have proposed letting most of the TCJA expire while raising the tax rate on wealthy individuals and corporations. Comerica analysts note, however, that the market has not begun to price in higher corporate taxes, possibly reflecting Wall Street’s perception that such a plan faces steep odds without a Democratic sweep.

Can the Market Predict the Election?

There is, as Comerica’s analysts indicate, a correlation between stock returns and the outcome of presidential elections. The relationship is clearest when looking at the performance of stocks in the three months leading up to an election, which has lately been a reliable predictor of how America votes. 

The S&P 500’s performance from August to October has correctly predicted each presidential election since 1984. When the index declined in that period, the incumbent’s party lost the White House, and vice versa.

There are some plausible explanations for this phenomenon. First, equity performance tends to reflect sentiment, and a buoyant market likely indicates Wall Street—and voters—feel pretty good about the economy. Conversely, declining stocks reflect either a real deterioration in the economy’s health or widespread pessimism. 

Alternatively, stock performance and election results may be correlated because of the uncertainty generated by elections that appear likely to put a new party in power. Uncertainty encourages caution on Wall Street, subsequently weighing on stocks.

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