Ten companies pulled back on Wednesday, booking hefty losses during the trading session, with investor sentiment weighed down by a flurry of government policies and dismal earnings performance in the last quarter of the year.
Meanwhile, the Dow Jones fell by 1.91 percent, the S&P 500 declined by 1.61 percent, and the tech-heavy Nasdaq dropped 1.41 percent.
In this article, let us take a look at the 10 companies that led a poor performance during the day and explore the reasons behind their drop.
To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.
10. Phillips 66 (NYSE:PSX)
Oil refiner Phillips 66 dropped its share prices for a third consecutive day on Wednesday, shedding 7.54 percent to close at $111.78 apiece as investor sentiment was dampened by an ongoing battle within its corporate boardroom.
At an annual stockholders’ meeting on the same day, Phillips 66 (NYSE:PSX) and activist investor Elliott Investment Management each won two seats, following months of dispute over the company’s asset sales and performance.
“This vote reflects a belief in our integrated strategy and a recognition that our early results do not yet reflect the full potential of our plan or the value inherent in this business,” Phillips 66 (NYSE:PSX) CEO Mark Lashier said in a statement.
For its part, Elliott said that being one of the largest investors of Phillips 66 (NYSE:PSX), it will “continue to actively engage with the Company while holding management and the Board accountable for delivering on their commitment to improve shareholder value.”
9. Sunrun Inc. (NASDAQ:RUN)
Sunrun saw its share prices decline by 7.63 percent on Wednesday to finish at $10.66 apiece as investors sold off positions following news that a new House bill has been filed at the House of Representatives seeking to kill a number of consumer tax breaks tied to clean energy.
According to reports, the tax breaks on the chopping block include those for electric vehicle owners and renters, as well as households making their homes energy-efficient.
If passed into law, the bill could significantly curtail and dampen profit margins of clean energy businesses, including Sunrun Inc. (NASDAQ:RUN), which provides solar technologies and energy storage products primarily for residential customers.
In the first quarter of the year, Sunrun Inc. (NASDAQ:RUN) swung to a net income attributable to shareholders of $50 million from an $87.8-million net loss in the same period last year.
Revenues increased by 10 percent to $504 million from $458 million year-on-year.
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