Energy Stocks Gain on Fed's Stimulus Reassurances

Jacob Harper |

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Following Fed Chairman Ben Bernanke’s comments that interest rates would be kept low and the $85 billion a month bond-buying program would continue for the “foreseeable future”, energy had a nice day on July 11. The S&P 500 Energy sector was up .93 percent to finish up trading at 602.11.

This gain also coincides with news that crude oil will top $105 a barrel. With it, West Texas Intermediate (WTI) oil futures have surged 14 percent this year. This has been great news for refineries like Valero Energy (VLO), which gained 2.95 percent to hit $34.54 a share, Phillips 66 (PSX), which was up 2.98 percent to hit $57.76, and big winner HollyFrontier Corp (HFC), which saw a robust 5.03 percent gain to finish up at $42.35.

ConocoPhillips (COP) gained 1.2 percent to hit $64.32 a share. Exxon Mobil Corporation (XOM) was up 0.5 percent to hit $93.27 a share. And Chevron Corporation (CVX), despite revealing on July 10 that production in the second quarter was off, gained 0.7 percent to hit $123.77 a share.

Some of the biggest gains on the day belonged to coal. Peabody Energy Corporation (BTU) jumped up 5.78 percent to finish up at $16.28 a share. Peabody is up 11.31 percent since July 5, and has appeared to rebound from a drop in June following comments from President Obama that painted a dim picture of coal’s future as a primary American energy source. Consol Energy Company (CNX) likewise had rebounded from a June drop, and rose 3.26 percent to hit $28.23 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CVX Chevron Corporation 115.81 0.64 0.56 5,771,551
VLO Valero Energy Corporation 68.00 -0.37 -0.54 5,124,518
PSX Phillips 66 87.16 -0.47 -0.54 1,512,953
COP ConocoPhillips 50.77 0.99 1.99 6,126,055
BTU Peabody Energy Corp n/a n/a n/a 0
HFC HollyFrontier Corporation 33.07 -1.03 -3.02 3,762,195
CNX CONSOL Energy Inc. 21.30 -0.48 -2.20 5,453,213
IBYNF Inmuebles Carso Sab Ord B n/a n/a n/a 0

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