Energy Sector Weighed on the S&P 500 on Monday



Lower oil prices weighed on the energy sector

After regaining strength at end of last week, the energy sector pulled back on Monday. The fall in oil prices weakened the energy sector. The S&P 500 Energy sector fell 0.89% on February 6. TechnipFMC (FTI), Marathon Oil (MRO), and Devon Energy (DVN) were the top losers in the energy sector. The rise in the US oil rig count has been weighing on oil prices.

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Cabot rose due to solid earnings

Despite weakness in the sector, Cabot Oil & Gas (COG) rose on February 6. The upgrade from JPMorgan and Susquehanna supported the rally. JPMorgan upgraded Cabot from “neutral” to “overweight.” It also raised the profit target for the next 12 months from $26 to $27. Susquehanna upgraded the stock from “neutral” to “positive.” It raised the profit target from $23 to $26. The upgrades made Cabot rise 10.7%—the biggest intraday rise in five years.

FERC approves Atlantic Sunrise expansion project

After rising for two consecutive trading weeks, Williams Companies (WMB) regained strength. The stock gained strength as Williams Companies got approval for the Atlantic Sunrise natural gas expansion project from the Federal Energy Regulatory Commission. The project includes the expansion of the Transco natural gas pipeline. It supplies Marcellus gas to the southeastern US and Atlantic region. Williams Companies rose 1% on Monday and ended the day at $29.18.

Royal Dutch Shell (RDSA), an Anglo-Dutch multinational oil and gas company, fell 0.12% on Monday. The price weakened amid reports about the sale of Shell’s partnership Danish Underground Consortium—an offshore oil and gas joint venture. Shell owns 36.8% stake in Danish Underground Consortium that’s worth about $1 billion. Next, we’ll discuss how major stocks in the telecom services sector performed on Monday.


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