Power Producers' Shares Rise as Treasury Yields Fall
Southern Falls on Weaker Q4 Revenue, Constellation Energy Gains on License Renewal Application
Shares of power producers experienced a second consecutive day of gains amid a decrease in long-term Treasury yields. This upswing was prompted by mixed economic data. However, Southern shares saw a decline as the utility reported lower fourth-quarter revenue due to weaker fuel, wholesale electric, and natural gas sales. On the other hand, Constellation Energy saw a 2.2% increase after the company filed an application for license renewal.
Analyst comment
The news is mixed, with positive and negative components. The rise in power producers’ shares and the decline in long-term Treasury yields are positive, while the weaker performance of Southern shares due to lower revenue is negative. The overall impact on the market is likely to be neutral, with slight fluctuations in the power sector.
