Blue-chip benchmarks took a sharp downturn Friday, Aug. 23, as the trade war between the U.S. and China intensified after China imposed tariffs on $75 billion of U.S. imports and President Donald Trump asked U.S. companies to look for "an alternative to China."
Early in the day, stocks were mostly unchanged after Federal Reserve Chairman Jerome Powell indicated a federal interest rate cut in September.
The Dow Jones Industrial Average was down 2.37% to 25,628.90 at market close, and the S&P 500 shed 2.59% to 2,847.11.
The S&P 500 Energy Index was down 3.37% to 410.68, and the Alerian MLP Index retreated 2.34% to 224.94 as oil prices declined. Brent Crude Oil declined 1.34% to $59.12 per barrel.
EQT Corp. stock slid 8.81% to $10.35; Hess Corp. shares slipped 6.86% to $59.56; and Devon Energy Corp. units shed 5.86% to $21.68, all on active volume.
Patterson-UTI Energy Inc. saw shares drop 5.50% to $7.90 in below-average trading. The oil and gas driller has entered into a $150 million senior unsecured term loan agreement maturing in June 2022.
Kinder Morgan Inc. stock fell 3.12% to close an active session at $19.57. Kinder Morgan co-founder and executive chairman Rich Kinder is ready to wrap the C$4.35 billion sale of Canadian operations almost 14 years after he made his first big buy up North.
Antero Resources Corp. shares lost 2.40%, closing an average session at $3.26. S&P Global Ratings has lowered its ratings on the Appalachian shale driller by one notch after it dropped its price assumptions for natural gas and NGL prices in the years ahead.
MPLX LP plans to exchange up to $3.25 billion of senior notes issued by its subsidiaries Andeavor Logistics LP and Tesoro Logistics Finance Corp. for new MPLX notes. MPLX units gave away 1.90% to wrap an average session at $27.33.
In the electric and diversified utilities sector, Covanta Holding Corp. shares settled 1.91% lower at $16.42 in average trading. The company has raised $50 million from the issuance of new tax-exempt bonds to fund eligible green expenditures at certain of its facilities in Pennsylvania.
FirstEnergy Corp. shares ticked off 1.55% to $44.99 in active trading. A federal bankruptcy court has delayed a decision to confirm the reorganization plan of FirstEnergy Solutions Corp., ordering the company to continue to negotiate with unions at its nuclear plants.
Entergy Corp. shares retreated 1.32% to $109.84 on low volume. The U.S. Nuclear Regulatory Commission has approved the transfer of licenses for Entergy's shuttered 683-MW Pilgrim Nuclear Power Station to decommissioning specialty company Holtec International Inc.
Among large entities in the sector, PG&E Corp. shares slid 5.48% to 11.04, and AES Corp. stock wrote off 2.70%, closing at $14.79, both on below-average volume, and NRG Energy Inc. shares settled 2.32% lower at $35.02, in active trading.
Tesla Inc. stock shrunk 4.84% to $211.40 on below-average volume. Walmart Inc. and Tesla are in discussions to address all issues surrounding fires at several Walmart stores, allegedly sparked by solar panels installed by Tesla Energy Operations Inc.
Vivint Solar Inc. stock lost 6.56% to $7.84 on above-average volume. Sunrun Inc. shed 5.24% to $14.66 and Canadian Solar Inc. trimmed 4.33% to $22.74, both on below-average volume.
The S&P 500 Utilities Index decreased 1.05% to 310.52.
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Market prices and index values are current as of the time of publication and are subject to change.
