U.S. Oil Producers, Solar Stocks Gain after Congressional Spending Bill
Oil producers' shares rose while refiners fell in premarket trading on Wednesday after U.S. lawmakers approved a spending bill that would lift a 40-year-old ban on domestic crude exports.
At the same time, shares of solar companies jumped as Congress extended investment tax credits beyond 2016.
Shares of Exxon Mobil (XOM) rose 0.4 percent to $79.75, while Chevron (CVX) gained 1 percent to $93.70 in premarket trade. Lifting the ban could increase revenues for oil producers since it allows them access to overseas markets and refiners.
Stocks across the energy sector have been hit hard this year by falling crude oil prices. The S&P 500 energy sector is down more than 21 percent year to date.
In the solar industry, shares of Sunrun Inc and SunEdison Inc jumped on the extension of the federal tax credits, which boost residential and commercial installations. Sunrun shot up 12.2 percent to $10.65 before the opening bell while SunEdison surged 13.5 percent to $5.62. First Solar climbed 6.3 percent to $63.59 and SolarCity jumped 10.1 percent to $44.09.
"We commend members of Congress in both parties for taking this bold step and we look forward to delivering on the promise that this policy now offers all Americans for clean, affordable and reliable energy," said Rhone Resch, president and CEO of the Solar Energy Industries Association in a statement.
(By Caroline Valetkevitch, Additional reporting by Sinead Carew and Chuck Mikolajczak)
