COP reported earnings that were lower than expected. Their costs have gone up for E&P, and they have not been able to replace reserves fast enough. Here is more briefing.com:
Natural Resource Plays Hit with Selling Pressure
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11:30 AM ET 4/27/11 | Briefing.com
The major equity averages continue to hug the neutral line. It has lacked direction all morning.
Natural materials plays under sharp pressure today. As such, both thematerials sector and the energy sector have fallen to losses of 1.3%.
Only a handful of energy stocks have managed to shake free from the sector's weakness and move higher. Hess (HES 83.95, +3.28) and Baker Hughes (BHI 75.99, +1.93) are outperforming because of a positive response to their latest earnings reports.
Weakness among materials stocks is also widespread, but steel stocksare being hit with some of the hardest selling. In turn, AK Steel (AKS16.43, -0.53) has handed back some of the gain that it had made in theprior session. Meanwhile, U.S. Steel (48.21, -1.51) has extended itsprior session slide to set a new multi-month low. Following an earningsmiss yesterday, shares of X were downgraded by analysts at GoldmanSachs.