uploads/2019/02/power-station-3431136_1280.jpg

Last Week’s Movers and Shakers among Utilities

By

Updated

Utilities gained

Last week was one of the utility sector’s best this year. The Utilities Select Sector SPDR ETF (XLU) rose ~2%, and the S&P 500 rose 1.6%. Meanwhile, the ten-year Treasury yield fell from 2.74% to 2.69%. Utility stocks and Treasury yields usually trade inversely.

XLU % change

Article continues below advertisement

Stock performance

PG&E (PCG), which filed for Chapter 11 bankruptcy on January 29, is facing ~$30 billion in potential liabilities associated with wildfires in 2017 and 2018. Surprisingly, PCG stock surged more than 16% after the filing, which we’ll discuss further in the next part of this series.

The third-largest utility by market cap, Dominion Energy (D), reported its fourth-quarter and fiscal 2018 earnings last week. In fiscal 2018, Dominion Energy’s EPS rose ~13% year-over-year to $4.05, and its stock rose 2.6% last week.

According to The Wall Street Journal, Duke Energy (DUK) faces a $10 million fine for not complying with federal rules designed to protect its electric system from physical and cyber attacks. Its stock rose 2.3% last week, and it is set to release its fourth-quarter and fiscal 2018 results on February 14.

NextEra Energy (NEE) and Southern Company (SO) rose more than 2% each last week, and AES (AES), Exelon (EXC), and CenterPoint Energy (CNP) hit 52-week highs. AES and EXC have rallied in the last year, by 45% and 26%, respectively.

Advertisement

More From Market Realist