MW: Energy stocks tap into optimism in broad market
By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) -- Energy stocks rose Thursday with the broad market, despite a dip in oil prices.
The Dow Jones Industrial Average (INDU 10,422, +25.24, +0.24%) rose 36 points, or 0.3%, setting the pace for gains in energy stocks. Sector leader Exxon Mobil (XOM 65.26, -0.17, -0.26%) rose a penny to $65.44. Chevron (CVX 73.21, +0.08, +0.11%) rose 0.3% to $73.37. Both oil majors are components of the Dow Jones Industrial Average (INDU 10,422, +25.24, +0.24%) .
Meanwhile, crude futures fell 34 cents to $80.53 as the dollar strengthened. See full story.
Energy stocks tapped into optimism in the broad market tied to better-than-expected February same-store sales figures from big U.S. retailers, as well as a drop in weekly jobless claims.
The NYSE Arca Oil Index (XOI 1,044, +0.39, +0.04%) rose 0.5% to 1,048 points. The NYSE Arca Natural Gas Index (XNG 546.62, -0.76, -0.14%) advanced 0.4% to 549. The Philadelphia Oil Service Index (OSX 209.01, -0.08, -0.04%) rose 0.3% to 210.
Among energy stocks in the spotlight, Western Refining (WNR 4.73, +0.04, +0.85%) said its fourth-quarter net loss widened to $97.6 million, or $1.11 per diluted share, against a loss of $12.8 million, or 19 cents a share in the year-ago period.
The fall was driven by the impact of a continued weak economy, reduced demand for transportation fuels and narrowing differentials between light and heavy crude oil prices, the company said.
Western Refining reported net sales of $2 billion for the fourth quarter against $1.66 billion in the year-ago period.
Jeff Stevens, Western's President and Chief Executive Officer, said the company has seen gradual improvement in refining margins during the period, which has continued into the first quarter of 2010. "We expect to see continued modest improvements in margins as we move into the driving season," he said.
Shares of Western Refining rose 2.3% to $4.80.
Among alternative energy stocks, Suntech Power (STP 14.38, +0.70, +5.12%) , one of the largest solar power companies in the world by market cap, saw its shares rise 7% to $14.63 after it beat Wall Street's earnings targets. See full story.
