Baker Hughes Leads Gains by Oilfield Contractors After Upgrade by Analyst
Baker Hughes Inc. led oilfield- services and equipment providers higher in New York trading after JPMorgan analyst J. David Anderson raised his rating of the company’s shares to “overweight” from “neutral.”
Baker Hughes jumped $4.07, or 11 percent, to $42.42 as of the 4 p.m. close of New York Stock Exchange composite trading. Before today, the stock had tumbled 24 percent since an April 20 rig explosion in the Gulf of Mexico that triggered a record U.S. oil spill and led to a moratorium on deepwater drilling permits.
Every energy stock in the Standard & Poor’s 500 Index rose today, helped by encouraging economic reports and a gain in oil prices. U.S. Interior Secretary Ken Salazar told a Senate committee yesterday the drilling moratorium may end sooner than the six months planned.
“Maybe investors are looking at anything that might come out from the political standpoint that could soften the stance,” said Kurt Hallead, an analyst at RBC Capital Markets in Austin, Texas.
Houston-based Baker Hughes is the world’s third-largest oilfield contractor. Schlumberger Ltd. and Halliburton Co., the companies that rank ahead of Baker Hughes, both rose more than 6 percent in New York trading.
Other oilfield contractors, drillers and equipment makers that rose 4 percent or more included Transocean Ltd., owner of the rig that exploded, Weatherford International Ltd., Noble Corp., Diamond Offshore Drilling Inc., FMC Technologies Inc., Pride International Inc., Cameron International Corp. and National Oilwell Varco Inc.
The S&P 500 climbed 3 percent. Crude-oil futures in New York gained 2 percent.