Nabors weighs on energy stocks
Sector hit by lower oil prices; Nabors draws analyst downgrade 09/25 09:29 AM
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NEW YORK (MarketWatch) -- Energy stocks moved down Tuesday on losses by Nabors Industries (NBR:$14.375,0$-0.705,0-4.68%) and Peabody Energy Corp. (BTU:$22.41,00$-0.53,00-2.31%) , as crude oil prices reversed course and dropped.
Crude-oil for November delivery slipped 0.4% to $91.55 a barrel in recent trades.
Among big cap oil stocks, Exxon Mobil Corp. (XOM:$91.97,00$0.09,000.10%) edged up fractionally, but Chevron Corp. (CVX:$117.0701,$-0.7049,-0.60%) lost 0.5%. The two companies are components of the Dow Jones Industrial Average , which fell 19 points.
The Energy Select Sector SPDR Fund dipped 0.4% after rising earlier in the session. The fund includes energy stocks in the S&P 500. Among that group, Nabors Industries (NBR:$14.375,0$-0.705,0-4.68%) dropped 4.6% as one of the worst decliners in the index.
Analysts at Global Hunter Securities Inc. lowered their rating on Nabors Industries (NBR:$14.375,0$-0.705,0-4.68%) to neutral from accumulate to reflect lower profit estimates for the company.
"Activity across most business lines is tracking below our prior forecast and is unlikely to meet such expectations ... given the current fundamental headwinds impacting its product lines," analysts said.
Also moving lower, Peabody Energy Corp. (BTU:$22.41,00$-0.53,00-2.31%) lost 2.3% and Helmerich & Payne (HP:$47.12,00$-1.10,00-2.28%) declined by 1.9%.
Among the major benchmarks in the energy sector, the NYSE Arca Oil Index dipped 0.4%, the NYSE Arca Natural Gas Index fell 0.5%, and the Philadelphia Oil Service Index moved down by 0.6%.
Among energy stocks on the move, Emerald Oil Inc. (EOX:$0.80,00$-0.09,00-10.11%) fell 10.8% to 79 cents a share after it priced 93.8 million shares at 80 cents a share.
Key Energy Services (KEG:$7.195,0$-0.955,0-11.72%) dropped % to $7.14 after the company issued a profit warning. Analysts at Tudor Pickering Holt said Key Energy expects a third-quarter loss of about 13 cents a share, compared to the Wall Street estimate for earnings of 24 cents a share.
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