Thomson Financial News reports on the winners and losers in the stock market thanks to progress in the Senate on an energy bill. Big winner: ethanol stocks. But the end of tax breaks for solar power isn’t likely to hurt solar stocks, analysts say.
Alternative-energy shares traded broadly higher Friday after the U.S. Senate passed an energy legislation bill that set a mandate for expanded use of biofuels and increased fuel-economy standards for new vehicles and energy-efficiency standards for appliances and buildings. Ethanol shares, in particular, got a boost from the bill, which includes a renewable-fuel standard of 36 billion gallons of biofuel by 2022 and set a mandate for nine billion gallons of blended biofuel in 2008.
The Powershares Wilderhill Clean Energy Portfolio (NASDAQ: CLNE), an exchange-traded fund, surpassed its annual high Friday by 4 cents, rising to $26.53, while the Global Alternative, another exchange-traded fund, traded near its annual high of $60.78 with a high Friday of $57.86.
Some analysts think ethanol stocks could potentially rise by 20% to 30% from their current level, if the legislation passes.
The American Coalition for Ethanol is pleased.
The House takes up the legislation next week.
