Coal Stocks Fall As Natural Gas Prices Dip
NEW YORK (AP) ⿿ Coal stocks fell Wednesday as the price of natural gas dropped below $4, making the coal rival an attractive option to fire more power plants.
It's not easy to retool a power plant from one fuel to another, but many plants have both coal and natural gas burners, making it possible to switch back and forth depending on relative prices of the two fuels.
Historically, natural gas has been more expensive than coal, so it tends to be used mostly to meet electricity demand during peak hours. But if gas prices keep falling, power generators could decide to increase their use of gas.
In trading on the New York Mercantile Exchange, natural gas fell 16.5 cents to $3.874 per 1,000 cubic feet.
Shares of Peabody Energy Corp. fell 98 cents, or 2.3 percent, to close at $42.23, after earlier dropping as low as $40.79. Shares of Massey Energy Corp. dropped $1.02, or 3.4 percent, to finish at $29.14; Arch Coal Inc. lost 43 cents, or 2 percent, to $21.98; Alpha Natural Resources Inc. fell 89 cents, or 2.4 percent, to close at $36.44; and Consol Energy Inc. dipped 61 cents to finish at $32.15. Massey shares have continued to slide since the company disclosed earlier this week that it was cited by federal officials for improperly storing explosives in the West Virginia mine where 29 men died in an April explosion. The company has said there was no link between the explosives and the fatal accident.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
