Uber, Lyft stocks surge after WSJ report California governor wants to keep negotiating regardless of A.B. 5 outcome

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Shares of ride-sharing companies Uber Technologies Inc. and Lyft Inc. rallied in morning trading Wednesday, after the California Governor Gavin Newsom reportedly said that regardless of what happens with AB5, he was committed to continuing negotiations with both companies. Uber’s stock rallied 4.5% and Lyft shares hiked up 7.1%. On Tuesday, the California Senate passed a bill, known as A.B. 5, that essentially classifies Uber and Lyft drivers as employees rather than independent contractors, which would give the drivers new wage and benefit protections. The vote sends the bill back to the state Assembly for final approval. The Wall Street Journal reported Wednesday that Governor Newsom said he it is in the best interest of the state to stay at the bargaining table, and still hopes to reach a deal with the ride-sharing companies. Uber’s stock has shed 17.5% over the past three months and Lyft’s stock has lost 16.1%, while the S&P 500 has gained 3.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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