U.S. markets got another punch in the gut from China Wednesday, as China hit the Yuan with its second currency devaluation within 24 hours. Macy’s, Inc. (NYSE:M) weak earnings report didn’t help matters either. M stock was down 5% intraday.
Markets began the day entrenched in negative territory, but the major indices pared earlier losses to finish slightly higher in the afternoon, as crude oil also found firmer footing.
Of the indices, the Dow Jones Industrial Average was flat, but the S&P 500 Index and Nasdaq Composite both gained 10 basis points. Most sectors were lower Wednesday, but energy, utility stocks and precious metals outperformed the market.
Some of the energy or commodity-related stocks that fared well included: SunEdison Inc (NYSE:SUNE), Cree, Inc. (NASDAQ:CREE) and Newmont Mining Corp (NYSE:NEM).
These, no doubt, are three of today’s best stocks, and here’s why:
SunEdison Inc (SUNE)
SUNE stock was rather energetic today after announcing a joint venture with TerraForm Power Inc (NASDAQ:TERP), creating the syndication of a $280 million, seven-year term loan facility, TerraForm Private Warehouse.
The warehouse was formed with $525 million in assets, and TerraForm will have exclusive rights over the warehoused operating assets to add them to their portfolio over time. Equity in the warehouse is being provided by several large investment companies.
Both SUNE and TERP are companies which operate within renewable energy niches. SUNE stock was up 7% on the day, while TERP stock darted up almost 8%.
Prior to today’s action, both stocks have been heavily battered over the past two months.
Cree, Inc. (CREE)
Despite posting a quarterly loss of 19 cents a share after the closing bell on Tuesday (coming in far worse than the 4 cent loss that Wall Street was looking for), CREE stock lit up more than 5% today.
Revenue of $382.2 million and current-quarter guidance met expectations, so the Street was in a forgiving mood for the earnings miss. For context, CREE’s earnings were 52 cents a share a year ago.
One of the reasons for the missed earnings was that CREE spent tens of millions of dollars on restructuring costs during the quarter. The company also noted there is much competition right now among LED makers, but also said it expects to see about a 10% rise in revenue in the current quarter.
Newmont Mining Corp (NEM)
NEM stock, up 6%, led a broad group of gold stocks higher on the day. Gold prices have risen for five consecutive days, and the Chinese devaluation of the Yuan has contributed to much of that, as equities and even the U.S. dollar have declined this week.
Gold is being seen as a safe haven right now, especially for investors worried that Yuan’s devaluation may lead to worldwide stock corrections.
Other winners on the day in the gold sector included Barrick Gold Corporation (USA) (NYSE:ABX), Goldcorp Inc (USA) (NYSE:GG), and Yamana Gold Inc. (USA) (NYSE:AUY), with Yamana surging 10% higher.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
