There has been little movement in the market so far this morning. The Nasdaq is unchanged; the S&P 500 has moved little; and the Dow has been relatively flat. The energy sector is the category of stocks that relate to producing or supplying energy. This sector includes companies involved in the exploration and development of oil or gas reserves, oil and gas drilling, or integrated power firms. Performance in the sector is largely driven by the supply and demand for worldwide energy. Energy producers will do very well during times of high oil and gas prices, but will earn less when the value of energy drops. Furthermore, this sector is sensitive to political events, which historically have driven changes in the price of oil.
The Energy sector (XLE) has risen 0.7% despite little change in the market overall. Currently, the biggest movers in the sector are:
|Company||Market Cap||Percentage Change|
|Transocean (NYSE:RIG)||$16.62 billion||+3.3%|
|HollyFrontier (NYSE:HFC)||$9.47 billion||-3%|
|SM (NYSE:SM)||$3.61 billion||+2.8%|
|Alliance Resource Partners (Nasdaq:ARLP)||$2.23 billion||+2.6%|
|Cabot Oil & Gas (NYSE:COG)||$10.35 billion||+2.5%|
|Pioneer Natural Res (NYSE:PXD)||$13.52 billion||+2.5%|
|Diamondback Energy (Nasdaq:FANG)||$711.6 million||-2.3%|
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Transocean (NYSE:RIG) is up 3.3% to reach a current price of $47.75 per share. This morning, the company is trading a volume of 1.7 million shares.
Slipping 3%, HollyFrontier (NYSE:HFC) is currently trading at $45.19 per share. At 1.4 million shares, the company's volume so far today is 0.7 times its current daily average.
SM (NYSE:SM) has risen 2.8% and is currently trading at $56.15 per share. The company's volume is currently 309,361 shares. This is a sign that there will be less trading activity than there was yesterday.
Increasing 2.6%, Alliance Resource Partners (Nasdaq:ARLP) is trading at $62.03 per share. So far today, the company's volume is 31,460 shares, 0.2 times the average volume over the last three months.
Cabot Oil & Gas (NYSE:COG) has moved up 2.5% and is currently trading at $50.48 per share. The company is currently trading a volume of 915,157 shares.
Pioneer Natural Res (NYSE:PXD) has increased to a share price of $112.53, a 2.5% rise. So far today, the company's volume is 416,847 shares, consistent with its current daily average.
Diamondback Energy (Nasdaq:FANG) is down 2.3% to reach $18.79 per share. So far today, 34,179 shares of the company's stock have changed hands. At this rate, trading activity will likely be down from yesterday when 189,639 shares changed hands.
The Bottom Line No matter the economic climate, Wall Street will always have stocks that make major moves each week. Daily stock performance should be weighed against historical performance and put in context of the market overall. Tools like valuation ratios and profit margins, however, are only as useful as the context you put them in; remember to take historical data and competitor performance into account.