Declinesamong energy equities outpaced the broader markets on Tuesday, Oct. 4, with theDow Jones Industrial Average falling 0.47% to 18,168.45, the S&P 500declining 0.50% to 2,150.49, and the SNL Energy Index dropping 1.97% to 274.52.
AES Corp.shares dropped 4.17% to $11.95 on more than double average volume after UBSSecurities LLC downgraded the company to "sell" from"neutral" with a target price of $11 in part because of theunderperformance of its holdings in Chile. Analyst Julien Dumoulin-Smith saidthe company was trading largely in line with U.S. independent power producerpeers.
retreated2.11% on strong volume to close at $31.60, after Williams Capital Group LPupgraded the companyto "buy" from "hold" with a target price of $35. WilliamsCapital analyst Christopher Ellinghaus said in an investor note that PNM'sshares represent an attractive point even if it is not trading at a deepdiscount compared to peer utilities.
"Whilewe are still cautious regarding the New Mexico regulatory environment with anew base rate case looming for December, we believe that the current totalreturn profile of the stock and the likely significant dividend increase inDecember will compensate investors well for the regulatory risk,"Ellinghaus said.
went down 0.99% inbrisk volume to settle at $13.00, after announcing to its executive management teamin anticipation of acquiring Engie's U.S. generating assets.
gave up0.21% to $13.96, while TerraFormGlobal Inc. gained 1.46% to $4.16, both in light trading, afterSunEdison Inc.confirmed that it isin talks with the yieldcos to resolve more than $3 billion in claims.
"OurChapter 11 process has been long and complex and we are now at a critical stageas it relates to the Yieldcos," SunEdison CEO John Dubel said. SunEdisonsaid it "disagrees with many" of the yieldcos' claims and is"reviewing and may assert" its own set of claims against itsaffiliates.
TheSNL Electric Company Index lost 2.01% to 415.16.
earned 0.13% on thin volume to close at $31.44, after completing its of a 49% interest inOdyssey Pipeline LLCand an additional 20% stake in Mars Oil Pipeline Co. from . The deal wasfunded with $50 million cash on hand and $300 million borrowings under thepartnership's five-year revolving credit facility.
S&PGlobal Ratings found that despite the mild upswing in commodity gas prices, oiland gas companies are still driving the overall increase in potential corporatedefaults. The oil andgas sector had the most firms on S&P's global list of 249 "weakestlinks," the rating agency said. "Weakest links" are companiesrated near the bottom of speculative grade, B-, with negative outlooks.
Recordingthe biggest losses in the gas utility sector for the day, declined 4.32% onstrong volume to settle at $65.57, New Jersey Resources Corp. dipped 3.48% in brisk tradingto end at $31.30 and Atmos EnergyCorp. retreated 3.34% in active trading to finish at $71.27. TheSNL Gas Utility Index ended 2.43% lower to 484.02.
Among coal stocks, Rhino Resource Partners LP fell 4.55% to end at $2.10,Westmoreland Coal Co.dropped 3.41% in light trading to finish at $9.07 and shed 2.01% in weakvolume to close at $3.91. The SNL Coal Index decreased 0.39% to 71.82.
November natural gas futures Tuesday, Oct. 4, in latebuying on weather forecasts that call for a near-term chill in the Northeastand a later return to above-average temperatures across the bulk of thecountry. The contract began the session on a downtick sinking to a $2.878/MMBtuintraday low, but reversed losses to a $2.968/MMBtu high and a settle 4.1 centshigher on the session at $2.964/MMBtu.
Market prices and indexvalues are current as of the time of publication and are subject to change.S&P Global Ratings and S&P Global Market Intelligence are divisions ofS&P Global Inc.