Why NextEra Energy, NextEra Partners, Hawaii Electric, and Brookfield Renewable Rose Today
Shares of utilities NextEra Energy (NYSE: NEE), NextEra Partners (NYSE: NEP), Hawaii Electric (NYSE: HE), and Brookfield Renewable Corporation (NYSE: BEP) were rallying today, up 5.6%, 6.6%, 6.1%, and 8.6%, respectively, as of 3:22 p.m. ET.
These stocks have been beaten down this year in a rare volatile year for utilities, which are often seen as defensive stocks. Hawaii Electric had its own company-specific disaster after the fatal wildfires in Maui this summer and potential liability stemming from that. However, the entire utility sector -- especially those companies with high exposure to renewable projects -- has been especially depressed due to surging interest rates this year.
But this morning, the Bureau of Labor Statistics released October inflation data, showing a softer-than-expected reading. That could pave the way for lower interest rates, thereby reversing the massive rate headwinds investors have seen this year.
Source Fool.com
