By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) -- Bearish reactions to the latest economic data on jobless claims and lower crude oil prices took a bite out of energy stocks on Thursday, even as sector leader Royal Dutch Shell swung to a profit.
U.S. initial jobless claims rose 8,000 to 480,000, more than expected, while U.S. productivity climbed 6.2% in the fourth quarter.
Crude prices provided downward pressure to energy stocks as well, with the front futures contract down $1.02 to $75.96.
The NYSE Arca Oil Index (XOI 1,018, -24.84, -2.38%) retreated 1.7% to 1,024. The NYSE Arca Natural Gas Index (XNG 526.54, -13.17, -2.44%) dropped 1.7% to 531. The Philadelphia Oil Service Index (OSX 194.55, -5.80, -2.90%) retreated 2.5% to 196.
Royal Dutch Shell dropped 2.8% to $55.16 after its earnings update. The oil major swung to a fourth-quarter net attributable profit of $1.96 billion, from a loss of $2.8 billion.
On a current cost of supplies basis, profit dropped to $1.2 billion, from $4.8 billion recorded at the same point a year ago. Revenue was flat at $81.1 billion.
"We are not assuming that there will be a quick recovery, and the outlook for 2010 is uncertain," said CEO Peter Voser.
Other earnings from S&P 500 (SPX 1,080, -17.77, -1.62%) components failed to provide much of a lift.
Spectra Energy Corp. (SE 21.18, -0.52, -2.40%) said its fourth-quarter net profit rose 28% to $219 million, or 34 cents a share, from $171 million, or 28 cents a share, a year earlier. Operating revenue for the quarter rose 2.9% to $1.3 billion from $1.26 billion.
The group said the results reflect the effects of improving commodity prices, a stronger Canadian dollar and increased gathering and processing revenues. Analysts polled by FactSet had expected earnings of 32 cents a share on revenue of $1.26 billion. The company said it expects 2010 earnings of $1.42 a share.
Shares of Spectra Energy fell 1% to $21.48.
Diamond Offshore Drilling Inc. (DO 91.80, -3.98, -4.16%) said its fourth-quarter net income fell to $276.1 million, or $1.98 a share, from $293.3 million, or $2.11 a share, in the year-ago period.
Diamond Offshore's revenue dropped to $890.8 million from $903.2 million, in the year-ago period.
The company was expected to earn $2.32 a share on revenue of $890 million, according to a survey of analysts by FactSet Research. The company said its results were hurt by increased tax expense, foreign exchange differences, and an assessment by Brazil.
Shares of Diamond Offshore dropped 4% to $91.69 in recent activity.
Finally, Alliant Energy (LNT 31.39, -0.05, -0.16%) dipped 0.2% to $31.38. The company said its fourth-quarter net profit rose 5.9% to $53.6 million, or 49 cents a share, from $50.6 million, or 46 cents a share, a year earlier.
Revenue for the quarter fell 3.1% to $854.9 million as stronger electricity sales were more than offset by a decline in gas revenue. For 2010, the company said it expects to report earnings of between $2.45 and $2.75 a share.
