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Oil and Gas Stocks Surge as Renewable Energy Shares Decline

The S&P 500 edged higher as the Fed Chair showed optimism on declining inflation. Energy topped the sectors as Trump's election chances rose.

Key Takeaways

  • The S&P 500 edged higher on Monday, July 15, 2024, as investors weighed the shifting political environment and the Fed chair reiterated optimism on declining inflation.
  • Energy was the top-performing sector as increased odds of a Trump election victory boosted the outlook for policies favorable to oil and gas companies.
  • SolarEdge Technologies announced workforce reductions as it deals with excessive inventory, pressuring shares across the solar power industry.

Major U.S. equities indexes moved higher to start a new trading week that will feature earnings reports from key financial institutions and companies like Netflix (NFLX) and UnitedHealth (UNH).

Monday’s stock-market strength came as Federal Reserve Chair Jerome Powell struck an optimistic tone about recent indications of slower inflation in comments at the Economic Club of Washington.

The session coincided with the opening day of the Republican National Convention, with investors evaluating the possible market implications of Saturday’s attempted assassination of GOP presidential candidate Donald Trump and the announcement of Ohio Sen. JD Vance as the party’s vice-presidential nominee.

The S&P 500 added 0.3%, just below its record closing high on Wednesday. The Dow gained 0.5%, setting a closing record for the first time since May 17. The tech-heavy Nasdaq was up 0.4%.

Political violence over the weekend boosted stocks related to security and companies that could benefit from a second Trump administration. Shares of Axon Enterprise (AXON), a manufacturer of law enforcement devices, surged 5.5%, leading the S&P 500.

Shares of cloud-based HR software provider Paycom Software (PAYC) jumped 5.2% after positive comments from Zacks Equity Research. Analysts highlighted the company’s attractive value, dividend payouts, and lack of debt.

Energy was the top-performing sector on Monday amid higher probabilities of a Trump election victory, boosting expectations for favorable policies for oil and gas companies. Shares of oil exploration firm APA Corp. (APA) rose 5%. Shares of oilfield services companies also posted notable gains.

Greater confidence in Trump retaking the White House lifted some energy companies, though the shifting political landscape pressured renewable energy companies. Shares of green energy utility AES Corp. (AES) plunged 10%, suffering the steepest losses of any S&P 500 constituent.

Beyond the unfavorable political outlook for renewables, losses spread across the solar power industry after Israel-based SolarEdge Technologies (SEDG) announced it would lay off 400 employees due to excessive inventory and a slowdown in Europe’s solar markets. SolarEdge shares plummeted 15%, while shares of U.S.-based solar panel manufacturer FirstSolar (FSLR) sank 8.5%.

Shares of luxury lifestyle firm Ralph Lauren (RL) fell 5.8%. Although the apparel designer has been focusing on enhancing its digital and direct-to-consumer sales, the company faces macroeconomic challenges and elevated operating expenses.

Original Story at www.investopedia.com

Trending News

Mississippi River Faces Persistent Saltwater Intrusion, Region Seeks Long-Term Solutions



For the third consecutive year, the Mississippi River is experiencing significant saltwater intrusion, prompting local communities and environmental experts to search for sustainable solutions. This recurring issue arises as the river’s flow decreases, allowing saltwater to move upstream and threaten drinking water supplies. The U.S. Army Corps of Engineers is actively involved in addressing this problem, employing temporary measures like saltwater barriers to mitigate the impact on affected areas.



Saltwater infiltration poses serious risks to public health and agriculture, as freshwater sources become compromised. The situation is exacerbated by prolonged periods of drought, which have reduced freshwater flow in the Mississippi River. According to the National Weather Service, drought conditions have worsened due to climate change, increasing the frequency and severity of saltwater intrusion events.



Local authorities are collaborating with federal agencies to explore permanent solutions. Among the proposed strategies are enhanced levee systems and improved water management techniques. The U.S. Army Corps of Engineers is evaluating the feasibility of long-term infrastructure projects to prevent further saltwater encroachment. Additionally, community leaders are advocating for increased funding to support these initiatives and safeguard the region’s water resources.



The impact of saltwater intrusion extends beyond drinking water concerns, affecting local ecosystems and agricultural productivity. Farmers in the region have reported crop damage due to elevated salinity levels in irrigation water. The Natural Resources Conservation Service is working with farmers to implement adaptive practices, such as planting salt-tolerant crops and improving soil management techniques.



As the Mississippi River continues to face challenges from saltwater intrusion, stakeholders emphasize the importance of collaborative efforts and innovative solutions. The ongoing threat underscores the need for comprehensive planning and investment to protect one of America’s most vital waterways from the impacts of climate change and environmental stressors.

November 19, 2024



Environmental activists have raised concerns over the fossil fuel sector’s significant impact on COP29, the latest United Nations Climate Change Conference. Activists argue that the industry’s presence diverts focus from critical climate actions.



The conference, designed to promote global climate agreements, faces criticism for allowing fossil fuel companies to participate extensively. Environmental groups claim these companies undermine efforts to reduce carbon emissions and transition to renewable energy sources.



According to Climate Action Network, fossil fuel representatives have increased their lobbying activities, aiming to weaken climate policies. These industries allegedly influence negotiations, leading to watered-down commitments that fail to address the urgency of climate change effectively.



Experts suggest that the influence of these companies stems from financial contributions and longstanding relationships with decision-makers. Critics argue that this affects the conference’s ability to enforce meaningful climate change regulations.



During the event, several protests highlighted the need for transparency and a stronger focus on sustainable energy solutions. Activists are calling for increased participation of renewable energy stakeholders in future conferences.



The controversy surrounding fossil fuel involvement at COP29 underscores the ongoing challenge of balancing industrial interests with the global imperative to combat climate change.



November 19, 2024