Entergy’s $2.1B Antitrust Settlement Plunges Shares 1.54% as $340M Volume Ranks 329th in U.S. Equities

Generated by AI AgentVolume Alerts
Tuesday, Oct 7, 2025 6:57 pm ET1min read
Aime RobotAime Summary

- Entergy's $2.1B antitrust settlement with the DOJ led to a 1.54% stock drop on October 7, 2025, with $340M in trading volume.

- The settlement includes a three-year compliance review, raising concerns over legal costs and reputational risks for the utility giant.

- Despite stable revenue growth, the stock's underperformance against peers amplified fears of operational risks beyond typical market cycles.

Entergy (ETR) closed 1.54% lower on October 7, 2025, with $340 million in trading volume, ranking 329th among U.S. equities. The decline followed a regulatory filing revealing a $2.1 billion settlement with the Department of Justice over alleged antitrust violations in wholesale energy markets. The announcement triggered immediate scrutiny from analysts, who highlighted the potential for prolonged legal costs and reputational damage to the utility giant's market position.

Market participants reacted cautiously as the settlement terms included a three-year compliance review period, during which

will face heightened regulatory oversight. This contrasts with recent earnings reports showing stable revenue growth, creating a mixed signal for investors. The stock's underperformance relative to peers in the S&P 500 utilities sector amplified concerns about operational risks beyond typical market cycles.

To run this test precisely we need to: 1. Define the "universe" • Which exchange(s) should the 500 stocks be drawn from – e.g., all NYSE + NASDAQ U.S.‐listed common stocks, or another market? • Should ADRs, ETFs, preferred shares and other non-ordinary shares be excluded? 2. Clarify trading convention • Buy at that day’s close and sell at the next day’s close (typical for a 1-day holding window), or another price point (open-to-close, close-to-open, etc.)? • Equal-weight each of the 500 names, or weight by volume/dollar volume? 3. Set practical details • Do we incorporate any transaction costs or slippage? • How to handle corporate actions (splits, dividends)? • Confirm the back-test period: from 2022-01-01 through today. The tool set currently available in this environment can back-test a single instrument or a set of dated "events," but it doesn’t natively build and re-weight a 500-stock portfolio each day. If you’re comfortable with some simplifying assumptions (e.g., U.S. common stocks only, equal-weight, close-to-close returns, zero costs) I can: • Generate the daily list of the top-500-by-dollar-volume; • Transform those lists into a daily "event" file; • Compute the equal-weighted index return series; • Feed that series into the engine for performance statistics. Please let me know: a) the market universe definition, b) your preferred price convention (close-to-close or other), and c) whether zero transaction costs are acceptable. Once I have these, I’ll proceed with the data pulls and calculations.

Comments



Add a public comment...
No comments

No comments yet