Tuesday, July 10, 2012

First Solar Leads Advance in Energy Stocks

First Solar Inc. led a rebound in energy stocks Friday, jumping as much as 13% during the trading session on news it would resume work on a major project in California.

First Solar said it has sorted out permitting problems that halted work on the 230-megawatt Antelope Valley solar power station it is building for the Los Angeles County Department of Public Works. The $1.3 billion project is slated to go on line next year.

First Solar FSLR +1.83% shares rose 9.2% to close at $15.88 after trading as high as $16.42. The stock has rallied 39% since hitting a 52-week intraday low of $11.43 on June 4.

In the fossil fuels sector, shares of independent refiner Valero Energy Corp. VLO +0.80% climbed 2.2%, among the gainers in the NYSE Arca Oil Index XX:XOI +1.17% . Valero, with no oil production of its own, benefits from lower oil prices.

July crude-oil futures settled up $1.56 at $79.76 a barrel in New York, clawing their way back from the previous session’s steep losses. Prices closed Thursday at their lowest since early October as the slowing global economy continues to weigh on energy demand. Read the latest on oil prices.

The oil sector index closed up 0.8% for the session, but down 3% for the week.

The NYSE Arca Natural Gas Index XX:XNG +0.43% rose 2%, with Southwestern Energy Co. SWN +0.42% among the leading percentage gainers in the group on a 5.8% advance to $29.02. For the week, the index is down about 1.2%.

The Philadelphia Oil Service Sector Index OSX +1.16% lost 0.1%, to suffer a 5.2% retreat for the week. Drillers and other oil-field-service companies have been among those hardest-hit in the industry by discouraging economic data and fears tied to the European debt crisis.

Separately, Arch Coal Inc. ACI +0.49% announced late Thursday it is idling three of its mines and laying off 750 workers. The company said weak commercial and industrial power demand necessitated the move. Coal, used extensively in power generation, is also facing stiff competition from cheap, abundant natural-gas supplies.

Arch Coal shares declined 1.1% to $6.13. The stock has tumbled nearly 58% year to date.

Source: http://www.marketwatch.com/story/first-solar-leads-modest-energy-stocks-rally-2012-06-22

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