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.
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.