GE’ stock tumbles after plan to exit the new-build coal power market

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Shares of General Electric Co. tumbled 9.1% in active midday trading Monday, after the industrial conglomerate said it plans to exit from the new build coal power market. Trading volume was 89.6 million shares, just under the full-day average of 91.0 million shares, but enough to make the stock the most actively traded on the NYSE. GE said it will continue to focus and invest in renewable energy and power generation business as it works to make electricity more affordable, accessible, reliable and sustainable. GE said its steam power business will work with customers on existing obligations as it exits the coal business, which may include divestitures, site closings and job cuts. “With the continued transformation of GE, we are focused on power generation businesses that have attractive economics and a growth trajectory,” said Russell Stokes, chief executive of GE Power Portfolio. GE’s stock selloff comes after it soared 15.6% last week, the best weekly performance since the week ended June 5, after upbeat comments from Chief Executive Larry Culp regarding GE’s free cash flow outlook for the rest of 2020. The stock was still down 43.9% year to date, while the Dow Jones Industrial Average was down 5.9%.
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