Edison International (EIX) and PG&E (PCG) slide roughly 20%–23% as California wildfire liability protections fail to pass, signaling a regulatory-risk revaluation rather than a routine utilities pullback.

EIX falls about 7.4% in pre-market trading after Mizuho cuts its rating to Neutral and lowers the target to $70 from $86 on the back of the wildfire-liability reform not meeting the August deadline.

Senate Bill 492 passing without wildfire liability protections leaves Edison exposed to future claims, even as its Q2 FY26 earnings appear solid.

Full-year 2026 guidance remains in the roughly $5.90 to $6.20 per share range, with analysts averaging around $6.13, suggesting expectations of solid profitability despite regulatory headwinds.

Disclaimer note: data reflects market prices and sentiment at publication time and is not investment advice.

The macro backdrop—Brent above $91 and US 10-year yields near 4.78%—weighs on growth stocks; higher oil supports energy names like SLB and inflation-driven valuation concerns, making company-specific momentum more informative for select names.

Trading activity shows a split, with downside hedges in September 2026 puts and upside bets via a Jan 2027 $50/$65 call spread, indicating mixed sentiment on risk and recovery.

Analysts see internal Democratic leadership tensions and question Newsom’s political strength, though he remains a powerful governor during a lame-duck period.

Upcoming reports from cybersecurity, AI-infrastructure, and enterprise software names—PANW, DELL, CRDO, MDB, GTLB—are expected to bring volatility as investors weigh results.

Market outlook remains tilted to downside risk from regulatory headwinds, with volatility likely to stay elevated if key supports break.

Amazon faces advertising-regulatory risk as the FTC and states sue over alleged ad-auction manipulation, raising questions about profitability in that segment.

BofA points to PG&E’s investor update as the next catalyst, with potential implications for capital spending, growth targets, and shareholder returns that could steer the stock.