James River Coal tumbles as energy stocks ebb
NEW YORK (MarketWatch) -- Energy stocks fell back Tuesday, surrendering earlier gains, as coal shares continued their slide after a bankruptcy filing from Patriot Coal Corp., with
On the up side,
At the closing bell,
Coal stocks fall into the red
Coal stocks fell back into the red after initial gains earlier in the day, on the heels of a bankruptcy filing by Patriot Coal. See story about Patriot Coal.
Analysts at Houston-based energy research firm Tudor Pickering Holt said clients should "proceed with caution" because the coal segment faces headwinds from heavy operating leverage, but it listed
Separately, analysts at Howard Weil terminated coverage of Patriot Coal because of the company's Chapter 11 bankruptcy.
Duke Energy CEO schedule to testify
Also Tuesday, analysts at Bernstein Research reiterated their outperform rating on Charlotte-based Duke Energy despite questions surrounding the surprise ouster of Bill Johnson as chief executive.
"We expect Duke to face a months-long legal and regulatory quagmire during which its stock price will be materially discounted," said Bernstein analysts, who added the company's shares would be "attractively priced" below $63. Shares of Duke Energy rose 1.3% to $66.14 on Tuesday.
"We doubt that Duke's board would have replaced Johnson and assumed the consequent legal risks, without a compelling and legally defensible reason," Bernstein analysts said. "If so, the drop in Duke's stock price could make the stock of interest to investors."
Duke Energy CEO Jim Rogers told the North Carolina Utilities Commission that the board had doubts about Johnson as the merger deal approached closure and that directors asked him to lead the company.
Separately, Roy Cooper, the state's attorney general, has launched an investigation into the leadership change.
Norwegian government averts Statoil production cut
U.S.-listed shares of
The state-owned oil company had planned to turn off its oil spigot on the Norwegian continental shelf because of a deadlock over contract talks with its workers.