May 26 (Bloomberg) -- Massey Energy Co., the sixth-biggest U.S. coal company, led producers higher after a report showed orders for durable goods increased for the fourth time in five months, signaling strength in manufacturing.
Massey rose 83 cents, or 2.6 percent, to $32.09 as of 11:39 a.m. in New York Stock Exchange composite trading. Patriot Coal Corp., the fourth-largest eastern U.S. coal producer, climbed 74 cents, or 54.7 percent, to $16.27. Consol Energy Inc., the coal and natural gas company, jumped 63 cents, or 1.8 percent, to $35.44.
The Commerce Department said bookings for goods meant to last at least three years gained 2.9 percent in April, the most in three months, and followed little change in March. Coal, a barometer for the economy, is used to generate electricity and manufacture steel.
Peabody Energy Corp., the largest U.S. coal producer, advanced 98 cents, or 2.6 percent, to $38.27. Alpha Natural Resources Inc., the third-biggest coal company, added 25 cents, or 0.7 percent, to $35.80. Arch Coal Inc., the second-biggest, increased 29 cents, or 1.4 percent, to $20.79.
Massey, the owner of the West Virginia mine where 29 people died in an explosion last month, also gained on speculation that its shares, which have fallen 41 percent since the accident, make it a target for acquisition.
“There’s always rumors,” said Pearce Hammond, an analyst at Simmons & Co. International in Houston. “Number one, Massey has attractive assets, and number two, the stock has fallen quite a bit. Yes, it could, but I personally don’t think it’s likely at the moment.”
Hammond said he would be “very surprised” to see a buyer step in because of pending investigations of the accident.
--Editors: Charlotte Porter, Joseph Link
To contact the reporters on this story: Mario Parker in Chicago at mparker22@bloomberg.net;
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.
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