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Energy stocks fall as GDP revision sets bearish mood
By Steve Gelsi, MarketWatch
Last Update: 10:16 AM ET Nov 24, 2009
NEW YORK (MarketWatch) -- Energy stocks fell Tuesday after the government revised its estimate of growth in gross domestic product for the third quarter down to a 2.8% annualized rate, matching economists expectations.
The NYSE Arca Oil Index XOI fell 0.3% in early action, as did the NYSE Arca Natural Gas Index XNG. The Philadelphia Oil Service Index $OSX fared worse, falling 0.7%.
Energy stocks tracked the action in the commodities trading pits, where crude-oil futures subtracted 90 cents to stand lately at $76.66 a barrel. Traders awaited data on U.S. inventories. See more on what's moving energy futures.
Individual decliners included shares of Rowan Cos. RDC, down 3.7%, and El Paso Corp. EP, off by 1.9%.
In the spotlight, shares of BJ Services BJS eased 0.9% to $18.63. The company reported fourth-quarter financial results on Monday. See article on BJ Services' results.
Analysts at Pritchard Capital Partners cut their fiscal 2010 earnings estimate to 40 cents a share from 43 cents a share based on near-term margin pressures. They also raised the company's profit forecast for fiscal 2011 to 91 cents a share from 75 cents previously, on a slightly higher revenue base.
"The quarter was modestly disappointing on weak margins," the Pritchard analysts said.
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