XLE Rallies as Oil Services Stocks Surged

Published on Wednesday, 02 June 2010 23:43 Written by Danny Miller

New York, June 2^nd (TradersHuddle.com) – The Energy Select Sector Spider (NYSE:XLE) rallied 4.33% to $52.72, outperforming the broad market index.

The strength on the ETF, resulted after the sector received a strong bid as investors piled back in into the embattled sector and staged a relief rally on the oil services plays. Halliburton (NYSE:HAL) and Schlumberger (NYSE:SLB) the biggest oil services companies surged at least 8.8% higher as investors speculated the sell-off sparked by BP’s failure to capped the leaking well in the Gulf was overdone.

Market participants jumped on the sector as the earnings impact of BP’s oil disaster in the Gulf and Obama administration off shore drilling moratorium will likely not be as onerous as first feared.