Exchange traded funds (ETFs) that invest in coal and miner stocks are on Monday’s radar screen as traders look to earnings from Massey Energy (NYSE: MEE).
“In terms of likely earnings beats, the key is the much stronger-than-expected export levels in the first quarter,” said Brean Murray, Carret analysts in an earnings outlook for the coal industry.
“With met coal spot prices remaining close to the $330/metric ton level, we would expect extremely bullish conference calls,” they wrote. “The bottom line (especially in light of the recent pullback in coal equities), is that we expect the space to move higher on solid earnings and optimistic forward met coal expectations.”
Massey accounts for nearly 5% of Market Vectors Coal ETF (NYSEArca: KOL). The ETF has traded flat this year but coal prices may get a boost from Japan’s nuclear crisis. [Coal ETFs are Heating Up.]