Why Energy Stocks Are Up Big on Tuesday Morning
Inflation data is once again the market's focus on Tuesday morning, but this time it's pushing the market higher. The U.S. consumer price index (CPI) rose 7.1% from a year ago, but the non-adjusted figure was actually down 0.1% from a month ago; both figures came in below expectations. For now, the market thinks that means inflation is under control.
Energy stocks have been helped as a result of the CPI data, and some big names are making unusual moves higher. Shares of Chevron (NYSE: CVX) were up as much as 2.8%, Kinder Morgan (NYSE: KMI) rose 2.7%, ExxonMobil (NYSE: XOM) increased 2.3%, and Cheniere Energy (NYSEMKT: LNG) was up 2.6% in early trading.
Inflation has been a key metric for markets for a couple of big reasons. One is that rising costs for goods and services can squeeze consumers to cut back in other areas. For energy companies, rising food or consumer staple prices may cause people to do less traveling or purchase a more fuel-efficient vehicle to save money.
Source Fool.com
