Utilities sector exchange traded funds jumped Monday, leading market gains after companies like Southern Co. (NYSE: SO) and Dominion Resources (NYSE: D) revealed strong third quarter results on strong summer electricity demand to beat the heat.
The Utilities Select Sector SPDR (NYSEArca: XLU) rose 2.3% Monday, surging back above its short-term 50-day simple moving average.
Supporting the utilities sector, the earnings season revealed utility companies generated high revenue and profits on warmer weather demand, which drove up power demand.
For instance, Southern Co. revealed total electricity sales volume increased 5.7% with retail electricity sales up 3.2% and wholesale volume was 18% higher, reports Austen Hufford for the Wall Street Journal.
Southern Co. revealed better-than-expected profit of $1.16 billion, compared to $970 million a year prior, with per-share earnings up to $1.18 from $1.05 and revenue surging 16% to $6.26 billion.
SO shares gained 2.7% Monday.
Additionally, Dominion Resources also revealed better-than-expected third quarter results on higher power demand during the warm summer months. Dominion showed earnings per share of $1.14, compared to $1.03 in the third quarter of last year, along with profits of $716 million, compared to $611 million last year.
D shares advanced 2.5% on Monday.