Utilities sector gains
Of the 41 utilities stocks we track, 30 gained during the week ended July 17. The Utilities Select Sector SPDR ETF (XLU) ended at $43.35 on July 17, a 0.9% gain over the closing price on July 10. During the same period, the SPDR S&P 500 ETF (SPY) gained 2.4%.
A positive Greek deal cheered markets globally. At the same time, dovish comments by Fed officials pushed mid-to-long-term bond yields down, benefiting utilities. The Iran deal pushed oil prices lower, giving markets lower inflation expectations.
While short-term treasury yields increased, yields on mid-to-long-term treasury securities dropped 1 to 12 bps (basis points). Utilities, a capital-intensive sector, have been a major beneficiary of low interest rates.
Teco Energy (TE), based in Tampa, Florida, was the biggest gainer during the week ended July 17. TE stock gained 15.4% to end the week at $21.28 with a $5.0 billion market capitalization. The company announced that it was looking for strategic options, including a possible sale.
ITC Holdings (ITC), based in Novi, Michigan, gained 2.7% to end the week at $34.06 with a market capitalization of $5.3 billion.
Dynegy Inc. (DYN) in Houston, Texas, gained 2.3% to end the week at $29.37 with a market capitalization of $3.8 billion.
Exelon (EXC) in Chicago, Illinois, also gained 2.3% to end the week at $33.49 with a market capitalization of $28.8 billion.
Duke Energy (DUK), based in Charlotte, North Carolina, lost 1.1% to end the week at $73.57 with a market capitalization of $50.9 billion. Duke Energy is the largest power company in the United States.
El Paso Electric (EE) in El Paso, Texas, lost a percent to end at $36.08 with a market capitalization of $1.5 billion.