Kinder Morgan and Other Big Movers In Utilities on October 16, 2012

The market is having a good day so far: the Nasdaq has moved up 1.1%; the S&P 500 is trading up 1%; and the Dow has risen 1%. The utilities sector is a category of stocks for utilities such as gas and power. It contains companies such as electric, gas and water firms and integrated providers. Because utilities require significant infrastructure, these firms often carry large amounts of debt. With a high debt load, utilities companies become sensitive to changes in the interest rate. As interest rates rise or drop, the debt payments will increase or decrease. The utilities sector performs best when interest rates are falling or remain low.

The Utilities sector (XLU) is up 0.2%, underperforming the market overall. The biggest movers in the sector are currently:

Company	Market Cap	Percentage Change
Companhia Energetica Minas Gerais (NYSE:CIG)	$10.54 billion	+4%
Huaneng Power International, Inc (NYSE:HNP)	$10.13 billion	+2.6%
Atlas (NYSE:ATLS)	$1.81 billion	+2.5%
National Fuel (NYSE:NFG)	$4.34 billion	+2.3%
Targa (NYSE:TRGP)	$2.12 billion	+2.1%
Kinder Morgan (NYSE:KMI)	$19.79 billion	+1.8%
Covanta (NYSE:CVA)	$2.36 billion	-1.3%

Broker Summary: Fidelity Online Brokerage

Companhia Energetica Minas Gerais (NYSE:CIG) has risen 4% to hit a current price of $12.85 per share. The company's volume is currently 2.5 million shares. At this rate, trading activity will likely be down from yesterday when 6.6 million shares changed hands.

Huaneng Power International, Inc (NYSE:HNP) has moved up 2.6% and is currently trading at $29.58 per share. So far today, the company's volume is 23,329 shares, 0.4 times the current daily average.

Rising 2.5%, Atlas (NYSE:ATLS) is currently trading at $36.06 per share. This morning, the company is trading a volume of 51,826 shares.

National Fuel (NYSE:NFG) is up 2.3% to reach a current price of $53.26 per share. At 121,878 shares, the company's volume so far today is 0.4 times the average volume over the last three months.

After rising 2.1%, Targa (NYSE:TRGP) is currently trading at a share price of $50.98. So far today, 74,006 shares of the company's stock have changed hands. At this rate, trading activity will likely be down from yesterday when 203,910 shares changed hands.

After an increase of 1.8%, Kinder Morgan (NYSE:KMI) has reached a current price of $35.53. So far today, the company's volume is 3.5 million shares, in line with the current daily average.

Slipping 1.3%, Covanta (NYSE:CVA) is currently trading at $17.52 per share. The company is currently trading a volume of 90,663 shares.

The Bottom Line The nature of the market is such that stocks will have good days and bad days. Paying close attention to the previous ratios will help you identify key times to adjust your strategy. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.