- Coal companies (KOL) continue their apparent short-covering rally, even as J.P. Morgan cuts its coal price forecasts, expecting excess production capacity built in recent years to keep downward pressure on prices in a mirror image of the late 2000s when capacity shortages drove prices higher.
- Even where capacity is forced to pause, much of it could be brought back quickly, which is acting as an overhang, the firm says.
- Arch Coal (ACI +19%) leads the gainers after extending its debt exchange through Sept. 23; the swaps originally had been scheduled to expire on Aug. 14 and then were extended through last Aug. 28.
- Also: BTU +8.8%, CLD +6.4%, WLB +3.1%.