Shares of power-plant operators fell as investors fled the sector in light of recent increases in Treasury yields.
The SPDR Select Sector Utilities exchange-traded fund, which mirrors the performance of the Standard & Poor's 500 utilities sector, has fallen by more than 6% in the last month, as traders flee the sector considered the most adversely affected by higher interest rates. Utilities compete with the Treasurys market for the dollars of fixed-income investors while the utility corporations themselves often carry a relatively high level of debt, making higher rates something of a double whammy for the sector.
Berkshire Hathaway Energy said William Fehrman will become its new chief executive, replacing a potential Warren Buffett successor who was promoted to oversee more Berkshire Hathaway Inc. companies.
-Rob Curran, [email protected]