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Energy & Utilities Roundup: Market Talk

9 Sep 2017 8:20 am

The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

2057 GMT - Officials at the Department of Homeland Security have signed a 7-day waiver of the Jones Act, a move that allows foreign vessels to fill in gaps from potential supply disruptions of petroleum products through areas impacted by Hurricanes Harvey--and potentially Hurricane Irma. Acting DHS Secretary Elaine Duke called the move "a precautionary measure to ensure we have enough fuel to support lifesaving efforts, respond to the storm, and restore critical services and critical infrastructure operations." The last waiver was issued in December 2012--for petroleum products deliveries--in the aftermath of Hurricane Sandy, DHS says. The waiver covers products such as gasoline, diesel and jet fuel shipped from New York, Pennsylvania, Texas, and Louisiana to South Carolina, Georgia, Florida and Puerto Rico. SeaRiver Maritime requested the waiver on September 2. (ezequiel.minaya@wsj.com)

2009 GMT - US stocks end mixed amid fears over Hurricane Irma and tensions between North Korea and the US. The Dow adds 13 points to 21798, the S&P falls 0.1% to 2461 and the Nasdaq slides 0.6% to 6360. Energy companies push the S&P lower, with Range Resources down 7.4% and Chesapeake Energy down 5.9%, and oil plummeting 3.1% to $47.56 on the possibility Irma could disrupt east-coast refineries. But insurers rebound from an Irma-related selloff earlier in the week and lead the financial sector higher, as XL gains 5.8% and Everest Re adds 5%. Haven assets rise slightly, with 10-year Treasury yields falling to 2.056% and gold gaining 0.1% to $1352. The WSJ Dollar Index falls 0.3%, close to lows last seen in May 2015. (jonathan.vuocolo@wsj.com; @jonvuocolo)

1606 GMT - Germany's DAX closes up nearly 0.1% at 12303.98, unable to retain earlier gains. Concerns about Hurricane Irma and geopolitical tensions put investors in a cautious mood ahead of the weekend, after statements by ECB President Mario Draghi Thursday did little to tame the euro. Thyssenkrupp topped the DAX, closing up 1.8% after news it completed the sale of its Brazilian steel operations Thursday, followed by HeidelbergCement, which ends up 0.9%. With little on the agenda for Monday, investors will be watching a Daimler investor event and the outcome of Irma's landfall in the US. (nikki.houston@wsj.com)

1437 GMT - The world's biggest oil companies have cut spending and sold assets enough to shore up their balance sheets and pay for dividends at a $50 a barrel oil price. But many of them will face major challenges boosting production in 2020 or after due to their relatively low level of spending, according to Tudor Pickering Holt. As a group, the free cash flow yield of the companies is expected to be 4.5% in 2018, a number that some investors may not find attractive with low growth, Tudor Pickering says. Companies such as Chevron (CVX) and Royal Dutch Shell (RDSA), which have a clearer path to growth in the coming years, remain favored names, Tudor Pickering adds. (bradley.olson@wsj.com; @bradnews).

1430 GMT - Hurricane Harvey's effect on oil and gas markets is continuing to be felt, with oil storage rising, crude imports and exports falling and significant storage reductions in refined products, according to Tudor Pickering Holt. US crude production outside Alaska was down 800,000 barrels a day, and Harvey also hurt natural-gas production, which was down 2B cubic feet a day. Considering adjustments for weather, the natural gas markets still seem undersupplied by as much as 3B cubic feet a day, Tudor Pickering says. (bradley.olson@wsj.com; @bradnews)

1026 GMT - The French government's sale of a 4.6% stake in Engie this week, which lowered its shareholding to 24.1%, won't affect the Engie credit rating, Moody's says in a note. But the rating company is just the latest soothing voice: UniCredit has already said the government stake reduction is neutral for corporate bond spreads, keeping its marketweight recommendation on Engie bonds. And the bond market also appears unfazed, with senior and hybrid bonds showing no signs of weakness this week. (tasos.vossos@wsj.com, @tasosvos)

(END) Dow Jones Newswires

September 09, 2017 04:20 ET (08:20 GMT)

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