President Trump's reported decision to pull the U.S. out of the Paris climate pact hurt solar energy shares and - a sector expected to benefit - coal stocks. Fred Katayama reports.
President Donald Trump's reported decision for the U.S. to withdraw from the Paris climate accord hurt solar energy shares. First Solar and SunPower shares fell more than 2 percent in morning trading. The accord aims to curb global warming partly by slashing carbon dioxide emissions from the burning of fossil fuels. But one sector expected to benefit -coal - also fell. Shares of the largest publicly-traded U.S. coal company, Peabody Energy declined, as did Arch Coal. And the VanEck Coal exchange traded fund also lost ground. Technical analyst Mark Newton of Newton Advisors. SOUNDBITE: MARK NEWTON, TECHNICAL ANALYST, NEWTON ADVISORS, (ENGLISH) SAYING: "I'm not one to necessarily use the news today of the accord as being all that important as to why energy's down. I think it's more of a supply-demand issue and just an on-going technical issue where most of these stocks just continue to be more sellers than buyers, and the stocks have just been drifting lower." Trump has previously called global warming a hoax. He had vowed to "cancel" the climate deal to bolster the U.S.' oil and coal industries. But some big oil companies like Shell and Exxon Mobil back the Paris pact. So did some coal companies which saw the deal as a way to help protect the industry's mining interests overseas. First Standard Financial's chief market economist Peter Cardillo on the impact of a U.S. withdrawal: SOUNDBITE: PETER CARDILLO, CHIEF MARKET ECONOMIST, FIRST STANDARD FINANCIAL, (ENGLISH) SAYING: "It isolates the United States from the rest of the world. We saw China saying they would stick to the agreement. Russia would stick to the agreement. Of course, all of Europe would stick to the agreement. I kind of think it has its plusses and its minuses. I would kind of think it has more minuses than pluses but nevertheless, it's a question of leadership." Backers of the climate deal worry that a U.S. pullout could lead other nations to weaken their commitments or also withdraw.