Why Peabody Energy Stock Plunged 23.1% on Tuesday
Shares of coal producer Peabody Energy (NYSE: BTU) fell as much as 23.1% in trading on Tuesday after some of the euphoria in the stock yesterday wore off. Shares of the stock were still down 20.4% at 3:30 p.m. EDT but were up 6.6% for the week.
The real story today is about giving back yesterday's gains. Shares of the coal energy stock jumped yesterday because warmer than normal weather is expected in the U.S., which caused a jump in natural gas prices on hope that supply would exceed demand. Logically, if demand for natural gas is up it seems like the demand for coal should be up as well.
Image source: Getty Images.
Source Fool.com
