U.S. stock gauges rebounded to moderate losses Thursday, May 24, after slipping earlier in the day after President Donald Trump canceled a planned summit with North Korean leader Kim Jong Un.
Most energy indexes felt the same brunt. The Dow Jones Industrial Average closed down 0.30% at 24,811.76 and the S&P 500 dipped 0.20% at 2,727.76.
The midstream sector took a big hit on the decision from the White House. Major companies like Tallgrass Energy Partners LP, Energy Transfer Partners LP and Boardwalk Pipeline Partners LP saw sizable daily declines. Tallgrass Energy stock dropped 4.08% to close at $42.75 on light volume; Energy Transfer's units trimmed 4.00% to settle at $18.48 on robust volume; and Boardwalk Pipeline's shares slipped 3.74% to finish a slow session at $10.56.
Apache Corp.'s shares shrank 3.08% to $41.26 on below-average volume. The oil and gas producer committed 100% of its natural gas liquids production in the emerging Alpine High play of the Delaware Basin to Enterprise Products Partners LP under a long-term agreement. Enterprise Products Partners closed a slow session down 1.31% at $27.98.
Oil and gas major Royal Dutch Shell PLC saw its class A shares decline 1.66% to $69.72 on high volume and class B shares retreat 1.80% to $72.72 on below-average volume. The company's subsidiary, Shell Offshore Inc., made a discovery in the Gulf of Mexico near the new Appomattox platform.
The S&P 500 Energy Index decreased 1.67% to close at 562.44, and Alerian MLP Index declined 1.80% to finish the day at 263.29.
Electric and diversified utilities bucked the broader trend. In the power generation sector, NRG Energy Inc. shares climbed 3.86% to wrap an active day at $34.43 and Vistra Energy Corp. picked up 3.66% to $24.08, also on active volume, as they were seen as winners in the PJM Interconnection's latest auction for future resource needs.
Among renewable energy producers, Ormat Technologies Inc. shares hiked 1.10% to close at $52.21, and Sunrun Inc. stock gained 1.10% to end its session at $11.01, both on thin volumes. Canadian Solar Inc. shares lost 1.18% to settle at $16.72 on below-average volume.
The S&P 500 Utilities Index spiked 0.75% to finish at 253.57.
In the coal business, Contura Energy Inc.'s shares grew 2.21% to reach $66.95 on 10 times the average volume after recording net income of $58.3 million, or $5.66 per share, in the first quarter, compared with $31.0 million, or $2.89 per share, in the first quarter the previous year.
Among other big coal extractors, Alliance Holdings GP LP saw its shares slide 2.79% to $26.49 and Alliance Resource Partners LP's stock gave away 2.67% to close at $18.20, both on below-average volume.
Trading ahead of options expiration at the close of business May 26 and the June contract's roll off the board on the return from the Memorial Day weekend May 29, the front-month June natural gas contract added value, as inventory building efforts showed signs of slowing on early cooling demand. June futures settled 2.6 cents higher at $2.940/MMBtu while July futures, which will soon move into the lead position, gained 1.6 cents to settle at $2.971/MMBtu.
Market prices and index values are current as of the time of publication and are subject to change.
