Duke Energy Corp (DUK): The Most Dangerous Sector in the S&P

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Worst of all, utilities face the uncertain environment of volatile energy-input costs and potential regulation. With The Southern Company (NYSE:SO) and Duke Energy Corp (NYSE:DUK) having made a big shift toward gas-fired power plants, rising natural gas prices could leave them with weak earnings. Meanwhile, anti-pollution regulations could force new capital costs on the industry, further hurting short-term prospects.

Longer to wait
As long as bonds suffer, utilities are likely to lag behind the overall market. At least for now, conservative investors shouldn’t count on utilities to provide their usual defense against falling stock markets.

The article The Most Dangerous Sector in the S&P originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends Exelon and Southern Company.

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