Utilities were in favor Friday as skittish investors turned defensive even as the broader market rebounded from a selloff the day earlier.
Investors seemingly shrugged of the risk that raising government bond yield pose to bond proxies and piled into the utilities, a defensive corner of the market as it provides a constant dividends and stable earnings irrespective of the state of the overall stock market.
American Electric Power (NYSE:AEP) rose 2% ahead of its earnings next week, which is expected to reveal a year-over-year increase in profit on higher revenues.
Pinnacle West Capital (NYSE:PNW) rose 2% a day after the company said it would raise its quarterly dividend by 6.1%, or 17 cents a share annually.
Dominion Resources (NYSE:D) rose 2%, adding to gains for month, which had followed an upbeat reports from JPMorgan (NYSE:JPM) in early October on expectations for a "modest upside" from company's tie-up with Scana Corporation (NYSE:SCG).
"We see modest upside earnings potential from the Scana Corporation deal, any Blue Racer sale or successful conclusion of the CT clean energy procurement next year," JPMorgan said.
The S&P 500 utilities rose 1.60%.
