Markets rose Thursday, Aug. 29, on renewed trade optimism after China's commerce ministry spokesman, Gao Feng, said the country opposed to escalating a trade war with the U.S.
U.S. Treasury Secretary Steven Mnuchin also said that talks between the two countries continued and that a visit by Chinese trade representatives to Washington, D.C., was being discussed.
The Dow Jones Industrial Average gained 1.25% to close at 26,362.25, and the S&P 500 advanced 1.27% to finish the day at 2,924.58.
Oil and gas stocks continued to outperform broader markets and other energy equities, as the S&P 500 Energy Sector advanced 1.45% to 421.74, and the Alerian MLP Index moved up 1.37% to 231.42.
Riviera Resources Inc. shares rose 12.77% in over-the-counter trading to conclude at $13.25, a day after the company announced that it will sell its remaining interest in properties in the Hugoton Basin to an undisclosed buyer for $295 million. Riviera said the exit from the basin will generate approximately $10 million in annualized general and administrative cost savings starting in the first quarter of 2020.
Encana Corp. shares moved up 3.94% on heavy volume to close at $4.49. The company expects to take up and purchase for cancellation 47,333,333 shares at $4.50 apiece, for a total price of about $213 million.
In a letter to Occidental Petroleum Corp. shareholders, activist investor Carl Icahn accused Occidental CEO Vicki Hollub and the company's board of directors of being unconcerned by the destruction of shareholder value through the acquisition of Anadarko Petroleum Corp.
Occidental shares were up 0.60% on light volume to settle at $43.37.
Targa Resources Corp. added 4.20% in light trading to finish at $35.51, after releasing its first sustainability report and highlighting plans to reduce greenhouse gas emissions.
Among other oil and gas companies, EQT Corp. saw a 5.50% increase on strong volume to close at $10.75; National Oilwell Varco Inc. climbed 4.85% on roughly average volume to end at $20.10; and Marathon Petroleum Corp. increased 4.81% in light trading to finish at $48.56.
In the electric and diversified utilities sector, PG&E Corp. shed 3.60% in active trading to close at $10.43. Most companies, however, saw gains. Otter Tail Corp. advanced 2.29% to $50.84 in below-average trading; Ameren Corp. increased 1.85% in strong trading to $77.15; AES Corp. added 1.75% in below-average trading to $15.12; and American Electric Power Co. Inc. closed 1.22% higher on light volume to $90.72.
Sunworks Inc. shares declined 9.43% on strong volume to end at 40.90 cents, following the announcement that the company will implement a 1-for-7 reverse stock split of its outstanding common stock to gain compliance with Nasdaq's listing requirements. Starting Aug. 30, the company's common stock will trade on a reverse stock split adjusted basis on the Nasdaq Capital Market under its current trading symbol SUNW.
The S&P Utilities Index was up 0.64% to 315.82.
In the coal sector, Peabody Energy Corp. launched cash tender offers for $1 billion of outstanding senior secured notes, as part of a refinancing initiative to accommodate the pending Powder River Basin/Colorado joint venture with Arch Coal Inc.
Peabody rose 3.22% to settle at $17.97, and Arch Coal added 1.73% to close at $75.34, both on light volume.
Market prices and index values are current as of the time of publication and are subject to change.
