MW: Energy stocks mixed in choppy trading, flat oil
NEW YORK (MarketWatch) -- Energy stocks traded mixed in choppy action on Friday as investors weighed the implications of a better-than-expected U.S. jobs report against flat oil prices.
Blue-chip shares sustained modest losses in the early going, then moved up to mixed trading at midday, with Exxon Mobil Corp. (XOM 73.05, +0.07, +0.10%) up 0.2% and Chevron Corp. (CVX 69.50, -0.29, -0.42%) down 0.2% at $69.65.
Among sector benchmarks, the Philadelphia Oil Service Index (OSX 181.32, +0.32, +0.18%) rose 0.2% to 181, the Amex Oil Index (XOI 983.08, -4.76, -0.48%) dipped 0.3% to 984 and the Amex Natural Gas Index (XNG 446.87, -0.19, -0.04%) rose 0.3% to 448.
Energy stocks initially moved up as the Labor Department reported a loss of 345,000 in payrolls for May -- less severe a contraction than had been expected and the least since September. See full story.
In energy trading, crude-oil futures rose 6 cents to $68.87 a barrel after momentarily spiking to the $70 mark on the payrolls data. See Futures Movers.
Among stocks in the spotlight, S&P on Friday cut its rating on Plans Exploration & Production (PXP 30.47, +0.48, +1.60%) to hold from buy, but lifted its price target for the stock by $5 a share to $32 a share. "The shares recently surpassed our 12-month target price amid gains in crude oil prices and strength in the overall energy sector," S&P said in a note to clients. Plans Exploration shares rose 1.9% to $30.56.
Noble Corp. (NE 36.30, +0.02, +0.06%) rose 3 cents to $36.31, as analysts at Pritchard Capital Markets reiterated their buy rating and a $38 a share price target.
The company said on Thursday that energy activity is increasing in the North Sea, and it's forecasting a need for jack-up rigs from Pemex, Mexico's state-run oil giant.
Noble also said it's moving into advanced talks with Exxon Mobil, Chevron and France's Total (TOT 58.26, -0.38, -0.65%) over long-term contracts in Angola.
Meanwhile, The Wall Street Journal reported the oil-and-gas industry is gearing up for a battle in Washington over fracturing wells with water and pumping out oil and gas.
Two Democratic lawmakers plan to introduce measures to regulate so-called "fracking" at the federal level for the first time amid concerns about tainted drinking water.
