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Shares of energy producers supplied a safe-haven commerce Thursday as traders rotated into defensive sectors after downbeat U.S. financial knowledge rekindled fears of a possible recession.
The Institute for Provide Administration reported its index measuring manufacturing unit exercise within the U.S. for July fell to 46.8%, down 1.7 share factors from June and beneath the Dow Jones estimate for 48.9%.
The U.S. S&P World manufacturing PMI for July dropped to 49.6 from a preliminary 51.6 studying in June, as new orders fell for the primary time in three months, and June building spending got here in decrease for a second straight month.
Following the batch of disappointing knowledge, the 10-year Treasury yield fell beneath 4% for the primary time since February.
The S&P Utilities Index jumped to its greatest degree in two-and-a-half years, with a number of energy firm shares to 52-week highs, as mounted earnings yields tumbled and traders sought the security of less-volatile shares providing regular dividends.
Amongst utility shares rallying to 52-week highs: Southern Co. (NYSE:SO) +4.8%, Pinnacle West (PNW) +3.9%, Dominion Power (D) +3.7%, American Electrical Energy (AEP) +3.2%, Duke Power (DUK) +3%, Consolidated Edison (ED) +2.7%, CMS Power (CMS) +2.4%, DTE Power (DTE) +2.3%, Edison Worldwide (EIX) +2%, FirstEnergy (FE) +1.9%, Sempra (SRE) +1.7%, NiSource (NI) +1.6%.
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