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Utilities Dominated the Market for the Second Consecutive Day

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Utilities sector

The utilities sector has shown strength for five consecutive trading days. On February 23, 2017, the S&P 500 Utilities Sector surged and closed at its highest level since September 27, 2016.

NiSource (NI), FirstEnergy (FE), and Entergy (ETR) were the top performers in the utilities sector on February 23.

NiSource, one of the largest utility companies in the United States, surged 2.6% on February 23. According to the company’s financial results, its net income in the quarter that ended on December 31, 2016, surged 49% to $88.8 million, handily beating its net income of $59.4 million for the same period in 2015.

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NiSource’s non-GAAP (generally accepted accounting principles) operating earnings were $0.33 per share, lower than the estimated $0.34 per share. In addition, the company’s gross revenue rose 16% to $1.3 billion, compared to $1.1 billion a year earlier. On February 23, NiSource ended the day at $23.77, its highest close since September 29, 2016.

Industrials sector

After pulling back on February 22, the industrials sector lost strength and fell on February 23. The S&P 500 Industrials Sector fell 0.77% to its lowest level in a week. United Rentals (URI), Flowserve (FLS), and Arconic (ARNC) were the worst performers in the industrials sector on the day.

United Rentals, the largest equipment rental company in the world, fell 5.6% on February 23. On the day, it priced add-on offerings of $250 million of its 5.875% senior notes due in 2026 and $250 million of its 5.5% senior notes due in 2027. On February 23, it ended the day at $120.90, its lowest level in a month.

In the next article, we’ll discuss the performances of commodities in the early hours of February 24.

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