Energy stocks end higher as deal in sight

SAN FRANCISCO (MarketWatch) — Energy stocks shook off early weakness to close higher on Monday, as investors hoped a solution for Washington's budget impasse was near.

The Wall Street Journal reported top Senate leaders on Monday said they are within "striking distance" of a deal to avert a government default and to reopen the government.

• Government shutdown: Track the latest news out of Washington »
/conga/story/2013/10/governmentshutdownstream.html 282136

Stocks finished higher, with Dow industrials and S&P 500 index gaining for a fourth straight session, after lawmakers appeared to inch closer to an agreement to raise the debt ceiling.

The president warned against the default and its impact on the U.S. and global economies.

Investors have been worried about the debt-ceiling deadline and the government shutdown and over the weekend global leaders urged the U.S. to solve its debt impasse.

Reuters Energy stocks end higher after Senate leaders say they are near a deal on debt crisis.

Top gainers among energy companies with the S&P 500 index were coal producer Peabody Energy Corp. (BTU) , with shares up 3.1%, and WPX Energy Inc. (WPX) , which rose 2.7%.

Decliners included The Williams Companies Inc. (WMB) , with shares off 1.1%, and Murphy Oil Corp., off 0.8%.

Chesapeake Energy Corp. (CHK)  was down 0.1%.

The company completed a round of layoffs last week, with about 800 employees let go, and Chief Executive Officer Doug Lawler told The Oklahoman the company is done with layoffs for the time being and ready to focus on being a "sustainable, strong, growing enterprise."

Blog: Energy Ticker
A blog about how to profit from the global energy market.
• Follow @EnergyTicker
/conga/story/misc/energy_ticker.html 281319

Major oil companies also reversed course, with shares of Exxon Mobil Corp. (XOM)  up 0.8%. Shares of Chevron Corp. (CVX)  advanced 0.8% as well, while shares of ConocoPhillips (COP)  gained 0.4%.

U.S.-listed shares of Royal Dutch Shell PLC (RDS.A)  advanced 0.6%.

The SPDR Energy Select Sector (XLE) , an exchange-traded fund focused on energy names, rose 0.7%.