Wall Street and the energy sector saw gains on Tuesday, March 26, unshaken by the 10-year Treasury yield remaining near its lowest level since 2017.
The Dow Jones Industrial Average gained 0.55% to close at 25,657.73, while the S&P 500 rose 0.72% to settle at 2,818.46.
Dominion Energy Inc. picked up 1.24% on light volume to end at $76.88, after announcing plans to permanently shut down more than 2,000 MW of oil-, gas- and coal-fired capacity including nine units that were idled in 2018.
TransAlta Corp. climbed 0.85% in brisk trading on the Toronto Stock Exchange to close at C$9.51. A group of activist investors holding approximately 10% of TransAlta stock said the company should preserve its ability to terminate Brookfield Renewable Partners LP's C$750 million strategic investment should a potentially superior offer arise.
The U.S. SEC permitted PNM Resources Inc. to block a shareholder resolution that calls for the utility to nominate to its board at least one expert on climate change and environmental issues relevant to electricity generation and transmission. PNM Resources was up 0.80% in active trading to finish at $47.69.
Among other electric and diversified utilities, Edison International saw a 1.21% increase to close at $65.07, AES Corp. added 0.93% to finish at $18.41, while PG&E Corp. shed 1.43% to settle at $17.95, all in light trading.
The S&P 500 Utilities Sector edged up 0.70% to 299.08.
Most oil and gas majors also closed the day with gains, as Concho Resources Inc. advanced 3.11% on slim volume to $108.42, Anadarko Petroleum Corp. rose 3.07% on strong volume to $44.94, and Occidental Petroleum Corp. added 2.99% in robust trading to close at $67.08.
Magellan Midstream Partners LP said the Permian to Gulf Coast oil pipeline project is unlikely to proceed as initially announced. Analysts say the increased likelihood that the plans will be shelved is positive news for shareholders of Delek US Holdings Inc.
Magellan Midstream Partners dropped 0.51% in below-average trading to close at $60.26, while Delek saw a 2.55% increase on light volume to end at $36.55.
NGL Energy Partners LP dipped 0.21% on below-average volume to finish at $13.94, after launching an underwritten public offering of an undisclosed amount of its class C preferred units at $25.00 per unit. The proceeds will be used for revolver debt repayment.
The S&P 500 Energy Sector gained 1.45% to 491.84, while the Alerian MLP Index picked up 0.36% to 254.13.
In the coal sector, Ramaco Resources Inc. said Yorktown Energy Partners IX LP made an in-kind distribution of 1 million shares of the coal producer's common stock, or about 2.4% of outstanding shares, to its general and limited partners. Ramaco Resources lost 6.35% on roughly 5x average trading volume to close at $5.75.
American Resources Corp. was up 1.22% on average volume to close at $4.15. The company has resumed the development of its Carnegie 2 underground coal mine in Pike County, Ky.
Market prices and index values are current as of the time of publication and are subject to change.