Sector Update: Energy
Energy stocks are higher with the NYSE Energy Sector Index rising 0.4% while shares of energy companies in the S&P 500 are advancing 0.7% as a group. Crude oil for February delivery added 62 cents to settle at $94.99 per barrel while February natural gas was up 11 cents to $4.43 per 1 million BTU.
In company news, Dow Chemical ( DOW ) rallied to a seven-year high Tuesday after activist investor Daniel Loeb took a major stake in the company and urged a fast spinoff of its petro-chemicals business.
Loeb and his Third Point LLC Tuesday said the hedge fund had acquired a significant stake in DOW, saying the company was now its largest investment. It did not, however, disclose exactly how many shares it owns.
DOW spokeswoman Rebecca Brantley told the Associated Press the company was aware of Third Point's investment stake, adding it welcomes constructive input and wants to continue a dialogue with shareholders. DOW also said the company constantly reviews its strategy.
DOW shares rose as high as $46.69 each, hitting their best levels since 2007. The stock was up 6.7% at $45.97 a share in recent trade.
In other sector news,
(+) CCJ, (+1.6%) TD upgraded shares of the uranium miner to Buy from Hold and raised its price target by C$1 to $C32 a share, explaining the expected restart of more reactors in Japan should support higher prices for the radioactive element.
(-) CEO, (-6.4%) Sets net production target of between 422 mln to 435 mln barrels of oil equivalent this year, up at least 5.5% over 2013 levels. The Chinese oil and gas company's 2014 capital budget is projected to be around $17.35 bln to $19.83 bln.
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