Despite a lot of movement, the market pretty much ended the week where it left off. Oddly enough, the price of oil did the same. After bounding higher midweek following oil inventories, crude settled right around $45 a barrel, which is pretty much where it started the week.
This scenario led to some really strange moves among energy stocks, with dozens up double digits, while others fizzled out. In fact, there was little, if any, news driving these huge moves other than market movements. As such, the biggest percentage moves made this week had no news of substance. Still, the three largest movers this week, according to S&P Capital IQ data, present an interesting case study. That's why we'll still venture closer to see why EXCO Resources (NYSE:XCO), Peabody Energy (NYSE:BTU), and W&T Offshore (NYSE:WTI) went on such a wild ride this week.
Peabody Energy had the only "news" this week, though it's not anything thesis altering. The company announced on Wednesday that it was planning on a 1-for-15 reverse stock split. All that means is that Peabody Energy investors will own a lower number of shares, though their fractional ownership in the company won't change one bit. Still, there was some other recent news that is much more thesis driving than the stock split.
Meanwhile, the moves in EXCO Resources and W&T Offshore were likely entirely due to the rally in oil prices earlier this week. That, and probably a healthy dose of short covering as investors buy stock to cover their short positions. That being said, there was some other recent news that's more important to the futures of EXCO Resources and W&T Offshore that's worth mentioning.
To learn even more about why those catalysts are more important than what actually drove these stocks to move so sharply this week, check out the following slideshow.