Markets rallied on Tuesday, Aug. 1, as investors gain confidence on broadly positive earnings from the energy and technology sectors so far.
The Dow Jones Industrial Average continued its streak, increasing 0.33% to 21,963.92, and the S&P 500 spiked 0.24% to close at 2,476.35. The SNL Energy Index closed 0.31% up, reaching 293.91 to kick off the month on a positive note.
CONSOL Energy Inc.'s share price fell 7.76% on brisk trading to $15.46 as the company released its quarterly earnings report. Although the company beat consensus estimates on expectations for the second quarter, investors fled the stock after the company failed to meet production growth expectations and unveiled a 14% increase in capital spending to finance gas volumes that will not yet appear in 2017.
Peabody Energy Corp. outperformed the market, gaining 7.35% to reach $30.10 on high volume after announcing plans to reduce debt and authorize a $500 million share repurchase program before the market opened.
Peabody reported second-quarter 2017 net income of $98.7 million in the second quarter, with adjusted EBITDA of $317.8 million. The company's net income per limited partner unit, however, was a loss of 21 cents during the quarter, missing the S&P Capital IQ consensus normalized EPS estimate of $1.05.
The SNL Coal Index decreased 1.38% to close at 66.49.
AES Corp. grew 1.27% on active trading to end the day at $11.20 following its close of the purchase of sPower from Fir Tree Partners through a joint venture with Alberta Investment Management Corp. for $853 million in cash plus the assumption of $724 million in nonrecourse debt.
Japan-based ORIX Corp. completed the purchase of a 22.1% ownership stake in Ormat Technologies Inc. from an investor group for $627 million. Ormat stock ticked up 1.43% to $60.15 on light volume.
In the renewables sector, Broadwind Energy Inc posted adjusted EBITDA of approximately $2.0 million in the second quarter of 2017, compared with an adjusted EBITDA of $2.1 million in the comparable quarter of 2016. Broadwind lost 3.85% to settle at $4.25 on above-average volume.
The SNL Merchant Generator Index added 0.47% to close at 101.00.
Energy Transfer Partners LP continued to rally Tuesday, adding 1.93% to close at $21.09 on nearly double average volume. The partnership's sale of a $1.57 billion stake in Rover Pipeline LLC to funds managed by Blackstone Energy Partners and Blackstone Capital Partners is attracting praise from industry analysts. However, the project has been beset by regulatory problems and delays.
Other midstream entities like CVR Refining, LP and Crestwood Equity Partners LP also made good on the first day of August. CVR Refining shares grew 8.11% on high volume to close at $8.00, and Crestwood Equity stock gained 5.89% on above-average volume to finish at $26.05.
Williams Partners LP, on the other hand, decreased 1.91% to $40.64 on normal volume.
The SNL Midstream Index inched into the positive territory, increasing 0.03% to finish at 116.25.
NYMEX September natural gas futures turned higher in bargain hunting at fresh lows and despite fundamental weakness. The contract settled the session with a 2.5-cent gain at $2.819/MMBtu, after sinking to a $2.761/MMBtu low.
Market prices and index values are current as of the time of publication and are subject to change.