Duke Energy: market performance in 2016
As we’ve already discussed in this series, Duke Energy (DUK) rallied 9% in 2016, roughly tracking the Utilities Select Sector SPDR (XLU). Dominion Resources (D) rose 12% in 2016, while Peer NextEra Energy (NEE) rose 15%, and Exelon (EXC) managed to gain more than 25% in the same period.
But US utilities were mostly headed downward in 2H16, influenced by the Federal Reserve’s interest rate hike commentary. As the increased possibility of a rate hike heats up and hampers utilities, better-than-expected earnings may soothe investors in 2017.
For more details, check out Market Realist’s series Hawkish Fed or Helpful Weather: What Will Drive Utilities in 2017?
Continue to the next part for a look at dividend yields.