A nice start for oil and energy after a brutal year:
TechTraderDaily: Energy names are the biggest gainers this morning, with the Select Sector SPDR exchange-traded fund rising 3.27% as light sweet crude contracts rose from the previous close by 32 cents to $44.92 a barrel, well above the high-30s range earlier in the week. Among the ETF member stocks, Apache was up $3.95, or 5.3%, at $78.48, Schlumbergerwas up $2.18, or 5.15%, at $44.51, Transocean was up $2.87, or 6%, at $50.12, and XTO Energy was up $1.79, or 5%, at $37.06.
Alt energy is getting helped along, too. Sunpower (SPWR) is up 10%, while First Solar is up about 7.5%. The big winners are the uber-volatile shipping stocks, like DryShips, which is up 18%. That one is now up about 4x since its November lows. As we’ve noted, these companies have a natural leverage on this stuff since their day rates are so volatile. A modest improvement in demand expectations could afford them significantly more pricing power.
Remember when higher oil prices were always spun as bad news? Sure, nobody wants to pay more at the pump, but if energy is a tell on global economic activity, then we like it.
Business Insider Emails & Alerts
Site highlights each day to your inbox.