Energy stocks slipped , surrendering their earlier gains, with coal shares continuing their slide following a bankruptcy filing from Patriot Coal Corp. . James River Coal Co. wad trading down by over 20 per cent. On the up side, Duke Energy Corp. recovered some of its losses to gain 1 per cent with the Chief Executive of the firm remaining in the spotlight for the week.
By the closing bell for the day, Exxon Mobil Corp and Chevron Corp were down by 0.7 per cent and 0.6 per cent respectively. The two giants in oil sector are a part of the 30-stock Dow Jones Industrial Average which was down by 83 points. Among the benchmarks of energy sector equity, the NYSE Arca Natural Gas Index was down by 2.3 per cent and the Philadelphia Oil Service Index was also down by 2 per cent and the NYSE Arca Oil Index shed almost 1.2 per cent.
The Energy Select Sector SPDR Fund moved down by 1.6 per cent , which tracks the energy stocks on the S&P 500. Components on S&P, Denbury Resources and Chesapeake Energy Corp lost 5.4 per cent and 6.5 per cent respectively. Coals stocks were back in the red after gains in the early morning session , following a bankruptcy filing by Patriot Coal.
Analysts were of the opinion that the clients must proceed with caution as the coal segments were facing headwinds from leverage of heavy operating, and listed Consol Energy as the least risky option in this regard. Alpha natural Resources was down by 6.1 per cent and Consol Energy shed 2.3 per cent, while Peabody Energy Corp dipped by 3.7 per cent. Outside the S&P 500, Arch Coal Inc fell 8.4 per cent and James River Coal dropped as much as 25 per cent to $2.16. Walter Energy was also down by 4.3 per cent.