Shares of power-plant operators recouped some of their recent losses as Treasury yields ticked down. Jeffrey Pavlik, managing member of investment firm Pavlik Capital Management, said the risk of rising Treasury yields remains a threat to the utilities sector. "From a short-term perspective, clearly the ones [at risk] when yields start creeping up and it starts being a trade-off for dividend yields are sectors like utilities and staples, which historically have been dividend-driven stocks," said Mr. Pavlik. "Longer term view is as rates pick up sectors [including utilities] that have accumulated a lot of debt be impacted a little more from the negative side."
Texas regulators who had nixed two earlier deals for a major piece of the state's power infrastructure, Oncor, on Thursday gave the nod to Sempra Energy's $9.45 billion deal for a majority stake.
-Rob Curran, [email protected]