Fed cut, approach of Hurricane Dean catch sector's attention. Good news on U.S. interest rates trumped Hurricane Dean among energy stocks on Friday as the sector came roaring back on the heels of recent losses.
Oil and gas stocks took their cue from the overall market, with the Dow Jones Industrial Average ($DJ:12,997.71, +151.93, +1.2%) moving up as much as 300 points.
Oil and gas stocks took their cue from the overall market, with the Dow Jones Industrial Average ($DJ:12,997.71, +151.93, +1.2%) moving up as much as 300 points.
Among sector benchmarks, the Amex Oil Index (XOI:1,294.85, +25.49, +2.0%) jumped 2.5%, the Amex Natural Gas Index (XNG: 473.21, +4.42, +0.9%) advanced 2.4% and the Philadelphia Oil Services Index ($OSX:249.58, +6.55, +2.7%) rallied 2.5%.
The sector also kept an eye out for updated forecasts on Hurricane Dean, which is expected to head toward the Gulf of Mexico and the Yucatan Peninsula next week. In the energy pits at the New York Mercantile Exchange, crude oil for September delivery rose $1.16, or 1.6%, to $72.14 a barrel. Against this backdrop, shares of Exxon Mobil (XOM:83.35, +2.68, +3.3%) , part of the Dow Jones Industrial Average, rose 2.8%.
Bigger moves were seen in the other U.S. oil majors. Shares of Chevron (CVX: 84.00, +2.61, +3.2%) jumped 3.3%, while ConocoPhillips (COP: 79.16, +1.88, +2.4%) moved up by 3.4%. In oil services, shares of Baker Hughes (BHI:79.51, +2.91, +3.8%) jumped 5.3% and GlobalSantaFe (GSF: 64.90, +3.40, +5.5%) jumped 7%. Bear Stearns said Friday that investors should consider diving back into oil services. "We suggest buying the top-tier oil-service and offshore drilling stocks with high backlog visibility and strong free cash flow for share repurchases," Bear Stearns said.
Bear Stearns spotlighted GlobalSantaFe and suggested Halliburton (HAL: 32.68, +0.71, +2.2%) as a possible stock for investors based on its global growth in demand for its services.
Bear Stearns spotlighted GlobalSantaFe and suggested Halliburton (HAL: 32.68, +0.71, +2.2%) as a possible stock for investors based on its global growth in demand for its services. The Philadelphia Oil Service index remains up 21% for the year, but it's down 15% from its peak on July 23.
Via: MarketWatch
by Steve Gelsi
by Steve Gelsi
