This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sector Snap: Coal Stocks Rise On Positive Outlook

NEW YORK (AP) ¿ Coal companies will likely rebound once economic activity, fuel prices, dry bulk rates and currencies normalize, said an analyst on Monday as he recommended a number of coal stocks.

The coal sector lifted Monday as the broader market rallied on upbeat housing and banking news. All three major stock indices were up about 2 percent in mid-afternoon trading. A lift in economic activity signals good news for coal companies as a boost in manufacturing goods means demand for coal will return.

So far demand for coal has been weak, but that has led to US producer supply cuts, which have helped prices and bolstered the sector's stocks, said Jefferies & Co. analyst Michael Dudas. Further cuts will continue to push long-term contract coal prices higher than expected.

Demand for metallurgical coal continues to suffer as raw steel production, which uses met coal, has fallen 50 percent year over year. Still, the metallurgical coal market has adjusted quickly, he noted, with over 40 million tons of announced global supply cuts.

Thermal coal demand is also under pressure, driven by a pullback in energy consumption by industrial users, high utility stockpiles, lower exports and fuel switching, Dudas said.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ANR $0.85 3.60%
BTU $4.48 3.10%
JRCC $0.00 0.00%
AAPL $130.25 -1.80%
FB $80.74 -1.40%


DOW 18,110.14 +72.17 0.40%
S&P 500 2,114.76 +5.84 0.28%
NASDAQ 5,055.4220 -4.8240 -0.10%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs