Solar Stocks Benefit From Rising Price of Crude Oil
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Today, it appears as if the market will not be able to hold onto its popular "Santa Claus rally" which was supposedly kicked-off on Friday of last week. Despite relatively low trading volume, bulls can't seem to get any traction in order to continue Friday and Monday's rallies, leaving the Dow and Nasdaq indices down by about 0.25%.
Several industries are performing unusually well today, however; energy stocks are outperforming most of the market as the price of crude oil is rising this morning. The price gain reflects investor concerns surrounding crude oil inventory levels. Market players have driven the price of a barrel of oil up by $1.95 to $94.94 in the trading day before a weekly report by the U.S. Energy Department is released. Analysts forecast that crude oil supplies in the U.S. will fall by about 1.2 million barrels, marking the sixth straight weekly decline.
The solar power sub-sector appears to be greatly benefiting from today's rise in crude oil. As the price of crude oil rises, the demand for alternative forms of energy becomes much stronger. This is why oil and solar stocks, for example, often trade similarly.
Five solar stocks are up by at least 6% or more today: LDK Solar (NYSE: LDK) up 6%, Evergreen Solar (Nasdaq: ESLR) up 8.4%, DayStar Technologies (Nasdaq: DSTI) up 13.4%, Canadian Solar (Nasdaq: CSIQ) up 6.6%, and Solarfun Power Holdings (Nasdaq: SOLF) up 8.5%. Out of these stocks, Solarfun and Canadian Solar have set new 52-week highs at $37.85 and $31.44, respectively. First Solar (Nasdaq: FSLR) and JA Solar Holdings (Nasdaq: JASO), two other solar power companies, have also hit new 52-week highs today. Shares of First Solar have traded as high as $277.47 and JA Solar stock has moved as high as $76.50.
Several industries are performing unusually well today, however; energy stocks are outperforming most of the market as the price of crude oil is rising this morning. The price gain reflects investor concerns surrounding crude oil inventory levels. Market players have driven the price of a barrel of oil up by $1.95 to $94.94 in the trading day before a weekly report by the U.S. Energy Department is released. Analysts forecast that crude oil supplies in the U.S. will fall by about 1.2 million barrels, marking the sixth straight weekly decline.
The solar power sub-sector appears to be greatly benefiting from today's rise in crude oil. As the price of crude oil rises, the demand for alternative forms of energy becomes much stronger. This is why oil and solar stocks, for example, often trade similarly.
Five solar stocks are up by at least 6% or more today: LDK Solar (NYSE: LDK) up 6%, Evergreen Solar (Nasdaq: ESLR) up 8.4%, DayStar Technologies (Nasdaq: DSTI) up 13.4%, Canadian Solar (Nasdaq: CSIQ) up 6.6%, and Solarfun Power Holdings (Nasdaq: SOLF) up 8.5%. Out of these stocks, Solarfun and Canadian Solar have set new 52-week highs at $37.85 and $31.44, respectively. First Solar (Nasdaq: FSLR) and JA Solar Holdings (Nasdaq: JASO), two other solar power companies, have also hit new 52-week highs today. Shares of First Solar have traded as high as $277.47 and JA Solar stock has moved as high as $76.50.
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