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Commodities

Commonwealth Fusion Systems Secures $1 Billion in Equity Funding Round

Commonwealth Fusion Systems said Thursday it has raised $1 billion in fresh equity financing to accelerate commercialization, specifically supporting the final assembly of its Sparc fusion demonstration machine in Devens, Massachusetts.The new funding brings its total capital raised to $4 billion.The company already submitted an interconnection application to PJM Interconnection. CFS remains on track to deliver commercial fusion power to the grid in the early 2030, it added.This timeline is further underpinned by strategic partnerships and power purchase agreements with major buyers, including Dominion Energy (D), Google (GOOG), and Eni (E).

$D$E$GOOGL
Commodities

NWS Warns of Extreme Heat Across Southern US This Week

The US National Weather Service on Wednesday said it expected parts of the southern US to continue experiencing dangerous and extreme heat this week.Parts of the Mid-Atlantic and Northeast are likely to face significant flash flooding through the night due to heavy rains, while additional flash flooding concerns remain for New England on Wednesday, the agency said.Flash flood risks were also forecast for the Four Corners region, especially its burn scar areas.The NWS issued an extreme heat warning early Wednesday for Arizona's Yuma, Parker, Lake Havasu City, Bullhead City, Kingman, Ajo, Gila Bend, Phoenix, Wickenburg, Dateland, Prescott, Payson, Globe, Casa Grande, Tucson, Globe, San Carlos, Oracle, Oro Valley, Green Valley, Nogales, Sierra Vista, Bisbee, Sells, Willcox, Benson, Safford, Bisbee, Page, Chinle, and Grand Canyon Village.Arizona is The state is primarily served by Pinnacle West Capital (PNW) unit Arizona Public Service Company, and UNS Energy subsidiaries Unisource and Tucson Electric Power.In Nevada, a similar warning was raised for Tonopah, Beatty, Las Vegas, and Caliente, primarily served by Berkshire Hathaway Energy unit NV Energy.Affected areas in California include Blythe, El Centro Imperial, Palm Springs, Twentynine Palms, Campo, El Cajon, Mount Laguna, Julian, Borrego Springs, Indio, Escondido, Temecula, San Clemente, San Bernardino, Hemet, Beaumont, Victorville, Barstow, Baker, Death Valley, Tehachapi, Bishop, Anaheim, Ontario, Chino, Los Angeles, Anaheim, Santa Ana, Burbank, Palmdale, Santa Clarita, Long Beach, Oxnard, Malibu, San Luis Obispo, Ridgecrest, Santa Maria, Paso Robles, Edwards AFB, and Riverside.PG&E (PCG) subsidiary Pacific Gas and Electric, Edison International's (EIX) Southern California Edison, and Sempra Energy (SRE) unit San Diego Gas & Electric are the major electricity service providers in these places.Also placed under a similar watch were Oklahoma's Bartlesville, Tulsa, Muskogee, Hugo, McAlester, and Oklahoma City. OGE Energy (OGE) subsidiary Oklahoma Gas & Electric and American Electric Power's (AEP) Public Service Co. of Oklahoma are the major service providers in Oklahoma.The NWS issued an extreme heat warning for Mississippi's Cleveland, Greenville, Grenada, Greenwood, Vicksburg, Jackson, Brookhaven, Clarksdale, and parts of Gulfport. Southern Co (SO) unit Mississippi Power and Entergy's (ETR) Mississippi subsidiary are among the major power suppliers in the state.In Florida, a similar warning was issued for Marianna, Apalachicola, Panama City, Tallahassee, Perry, Lake City, Cross City, Jacksonville, Gainesville, and parts of Pensacola and De Funiak Springs. NextEra Energy (NEE) subsidiary Florida Power & Light and Duke Energy (DUK) are among the major suppliers in these places.Also placed under an extreme heat warning watch were Louisiana's Hammond and New Orleans, served by Entergy's local subsidiaries; Hilton Head Island and Beaufort in South Carolina, where Dominion Energy (D) is the primary service provider, Mobile in Alabama, served by Southern Company's Alabama Power; and Bainbridge, Valdosta, Waycross, Savannah, and Hinesville in Georgia, which primarily falls under the service area of Southern Company's Georgia Power.The NWS issued flash flood warnings for areas near Dalton and Blairsville in Georgia, parts of New Jersey, New York, and small pockets in Pennsylvania. A flood warning was raised for Cotulla and George West in Texas, and small pockets of New York.

$AEP$D$DUK$EIX$ETR$NEE$OGE$PCG$PNW$SO$SRE
Commodities

NextEra Energy Posts Higher Segment Revenues in Q2

Electric power and energy infrastructure company NextEra Energy (NEE) on Friday reported an increase in Q2 revenue across all segments, mainly the energy resources unit and Florida Power & Light.The energy resources segment generated $2.53 billion in revenue during the quarter, up from $1.91 billion a year earlier.Its backlog expanded to 35.1 gigawatts after adding 3.6 GW of renewables and storage projects during the quarter, according to the report.New battery projects account for about 2 GW, while solar projects account for 900 megawatts, and wind projects 700 megawatts.Meanwhile, FPL generated $4.90 billion in revenue, an increase from $4.71 billion in the year-ago period, results showed.The utility unit added over 90,000 customers over the year, the company said. Its large load interests expanded to 21 GW, driven by strong demand from hyper-scalers and other large customers.Of the total volume, 12 GW is already in advanced discussions, the company said, with potential delivery as early as 2028.NextEra Energy said it has advanced the proposed merger with Dominion Energy (D) and is now awaiting regulatory approvals. The transaction is expected to close in H2 of 2027.Price: $88.94, Change: $-0.85, Percent Change: -0.95%

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Commodities

NextEra, Dominion File for Approval to Combine Operations

NextEra Energy (NEE) and Dominion Energy (D) have filed for approval to merge their operations to create a larger energy provider capable of meeting surging electricity demand across the US, the companies said on Wednesday.The combined entity, which they hope to form by 2027, aims to leverage shared best practices in grid modernization, storm restoration, and data analytics to improve overall reliability, they said in a joint press statement.The proposed combination will unite Dominion's regional expertise in Virginia and the Carolinas with NextEra's massive financial scale, supply chain network, and experience in building and operating renewable energy infrastructure.The new organization will serve roughly 10 million customers, utilizing a diverse generation mix that includes nuclear, natural gas, solar, and battery storage, it said.The companies also said that merger-related expenses will not be charged to customers.Operationally, Dominion's utilities will remain locally led and separately regulated, ensuring that state commissions maintain oversight of rates and service quality.The transaction remains subject to approval from various state and federal regulators, including the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission.

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Commodities

NWS Warns of Severe Thunderstorms in Central & Southern High Plains, Kansas, Missouri

The US National Weather Service said central and southern High Plains and the region stretching from eastern Kansas into Missouri could experience severe thunderstorms, with risks of large hail and damaging wind gusts.Meanwhile, the Mid-Mississippi, Ohio and Tennessee Valleys, and the Appalachians are likely to encounter heavy rainfall and potential scattered flash flooding due to a slow moving frontal boundary and a round of storms on Friday.The NWS issued a red flag warning for Oregon's Chemult, Crater Lake, Chiloquin, Bly, Klamath Falls, Lakeview, and Silver Lake, primarily served by PacifiCorp's Pacific Power.A red flag warning was also raised for Gerlach, Reno, Carson City in Nevada, where Berkshire Hathaway Energy's NV Energy is a major service provider.A similar warning was also issued for California's Cedarville, Bieber, Susanville, Canby, Alturas, and Likely. Meanwhile, an extreme heat warning was raised for Palm Springs, Blythe, and El Centro Imperial. These places are primarily served by Pacific Power, Edison International's (EIX) Southern California Edison, and PG&E (PCG) subsidiary Pacific Gas and Electric Company.In Utah, a red flag warning was raised for Cedar City, St. George, Zion National Park, and parts of Milford. Milford and Zion National Park were also covered under an extreme heat warning along with Bluff, Blanding, Escalante, Moab, Capitol Reef National Park, Price, Manti, Delta, Nephi, Provo, Vernal, Green River, Duchesne, Wendover, Logan, Brigham City, Provo, Tooele, Park City, Ogden, and Salt Lake City. The state primarily falls under the service area of PacifiCorp's Rocky Mountain Power.In Arizona, an extreme heat warning was issued for Parker, Yuma, Phoenix, Wickenburg, Grand Canyon Village and Page. The state is primarily served by Pinnacle West Capital (PNW) unit Arizona Public Service Company, and UNS Energy subsidiaries Unisource and Tucson Electric Power.Affected areas in Idaho included Pocatello, Malad City, Preston, Twin Falls, Burley, and Blackfoot, served by Idacorp's (IDA) Idaho Power and Rocky Mountain Power.Colorado's Craig, Rangely, Meeker, Rifle, and Grand Junction, served by Xcel Energy (XEL) and Black Hills (BKH) unit Black Hills Power; and Wyoming's Sheridan, served by Rocky Mountain Power, were also covered under an extreme heat warning watch.In Montana, an extreme heat warning was raised for Glasgow, Glendive, Miles City, Billings, Red Lodge, Livingstone, Broadus, Bozeman, Plentywood, Malta, Harlowtown, Terry, Jordan, Winnett, Circle, and Sidney. Northwestern Energy (NWE) and MDU Resources (MDU) unit Montana-Dakota Utilities are among the primary service providers in these places.Also covered under an extreme heat warning watch were North Dakota's Crosby, Williston, Bowman, Elgin, Beulah, Ashley, Bismarck, Jamestown, Harvey, Bottineau, Rugby, and Minot. Xcel Energy, Montana-Dakota Utilities and Otter Tail's (OTTR) Otter Tail Power are among the major electric service providers in the state.The NWS also issued extreme heat warnings for Charleston, Summerville, Moncks Corner, Georgetown, Conway, and Myrtle Bridge; and North Carolina's South Port, Burgaw, and Wilmington. Duke Energy (DUK) and Dominion Energy (D) are the primary service providers in the Carolinas.In Illinois, the NWS issued a flood warning for Peoria, Canton, Havana, and Pekin, while a flash flood warning was raised for Carbondale and Chester. Ameren's (AEE) Illinois unit and Exelon subsidiary ComEd are among the major service providers in Illinois.The NWS issued a flash flood warning for Missouri's Cape Girardeau, Centerville, and Rolla; a flood warning for Farmington; and a severe thunderstorm warning for Sikeston. Evergy (EVRG), Ameren's Missouri unit, and Algonquin Power & Utilities (AQN) subsidiary Liberty are the major service providers in Missouri.A flood warning was also issued for Iowa's Decorah, Clinton, and Charles City. Berkshire Hathaway Energy unit MidAmerican Energy and Alliant Energy are primary service providers in the state.Meanwhile, Paducah in Kentucky was covered under a flash flood warning watch, while a flood warning was raised for Petersburg in Indiana.Electric output in the US touched an all-time peak, exceeding the 100,000 gigawatt-hours levels, for the first time during the week ended July 4, the Edison Electric Institute said Thursday.US electricity generation hit a record 100,996 GWh for the week, surpassing the previous high of of 99,445 GWh set in July 2022, while total output over the past 12 months rose 2.3% to 4.35 million GWh.

$AEE$AQN$BKH$D$DUK$EIX$EVRG$IDA$MDU$NWE$OTTR$PCG$PNW$XEL
Commodities

NWS Warns of Thunderstorms in Northern, Central Plains, Lower Missouri, Lower Ohio Valleys, Mid-Atlantic

The US National Weather Service said parts of northern and central Plains, the region stretching from Lower Missouri to Lower Ohio Valleys, and the Mid-Atlantic are expected to experience severe thunderstorms, with risks of strong gusts and/or large hail on Thursday.Mid-Mississippi and Ohio Valleys, and Mid-Atlantic are likely to face flash and urban flooding due to excessive rainfall.The NWS issued a red flag warning early Friday for Utah's Milford, Cedar City, Escalante, Bryce Canyon National Park, Zion National Park, parts of Bluff and Capitol Reef National Park. PacifiCorp unit Rocky Mountain Power is the main electricity provider in the state.An extreme heat warning was issued for Arizona's Parker, Yuma, Phoenix, Gila Bend, Dateland, Ajo, Globe, Casa Grande, Tucson, Page, Grand Canyon Village, Wickenburg, and Safford. The state is primarily served by Pinnacle West Capital (PNW) unit Arizona Public Service Company, and UNS Energy subsidiaries Unisource and Tucson Electric Power.A similar warning was raised for California's Blythe, El Centro Imperial, Palm Springs, Beaumont, Palm Springs, Indio, Borrego Springs, Julian, Mount Laguna, and areas near Campo. These places are primarily served by Sempra (SRE) unit San Diego Gas & Electric and Edison International's (EIX) Southern California Edison.Also placed under an extreme heat warning were Savannah and areas near Hinesville in Georgia, which primarily falls under the service area of Southern Company (SO) unit Georgia Power.The NWS also issued extreme heat warnings for South Carolina's Hilton Head Island, Beaufort, Charleston, Summerville, Moncks Corner, Georgetown, Conway, and Myrtle Bridge; and North Carolina's South Port, Burgaw, and Wilmington. Duke Energy (DUK) and Dominion Energy (D) are the primary service providers in the Carolinas.In Illinois, the NWS issued a flood warning for Peoria, Canton, Havana, and Pekin. Ameren's (AEE) Illinois unit and Exelon (EXC) subsidiary ComEd are among the major service providers in Illinois.A similar warning was raised for Iowa's Cedar Rapids, Clinton, and Charles City. Berkshire Hathaway Energy unit MidAmerican Energy and Alliant Energy (LNT) are primary service providers in the state.The NWS also issued flood warnings for small pockets of Minnesota and Indiana.

$AEE$D$DUK$EIX$EXC$LNT$PNW$SO$SRE
Commodities

NWS Forecasts Dangerous Heat in Eastern US Through Holiday Weekend

Dangerous, record-breaking heat will continue across parts of central and eastern US through Friday before shifting its focus across the entire eastern US through the Independence Day holiday weekend, the US National Weather Service said.Temperatures could potentially reach a peak of nearly 115 degrees Fahrenheit.The region stretching from the northern/central Plains into the Midwest, Ohio Valley, and Mid-Atlantic is likely to experience severe thunderstorms in places on Friday.The NWS early Friday issued a red flag warning for Colorado's Montrose, Gunnison, Nucla, Buena Vista, Cortez, Durango, Lake City, Alamosa, Telluride, Leadville, Creede, Wolf Creek Pass, Saguache, South Fork, Salida, San Luis, Trinidad, Canon City, Colorado Springs, Pikes Peak, Fairplay and Woodland Park.Pueblo and Westcliffe were placed under an evacuation immediate watch.Xcel Energy (XEL) and Black Hills (BKH) unit Black Hills Energy are the primary electricity service providers in Colorado.The NWS issued an extreme heat warning for the entirety of Ohio and Kentucky. The Ohio-based subsidiaries of American Electric Power (AEP) and AES (AES), FirstEnergy (FE) units Ohio Edison, Toledo Edison, and The Illuminating Company, and Duke Energy (DUK) are among the major service providers in Ohio.Kentucky is primarily served by PPL (PPL) subsidiary Louisville Gas and Electric & Kentucky Utilities, AEP unit Kentucky Power, and Duke Energy among others.An extreme heat warning was also raised for the entirety of New Jersey, Rhode Island, Delaware, Massachusetts, and Connecticut.Eversource Energy (ES), National Grid (NGG), Exelon (EXC) unit Delmarva Power, Public Service Enterprise Group (PSEG) unit Public Service Electric & Gas, FirstEnergy subsidiary Jersey Central Power & Light, Avangrid unit The United Illuminating Company, Unitil, PPL subsidiary Rhode Island Energy are among the major service providers in these states.Almost all of Maryland, except for Oakland and parts of Cumberland, were also placed under an extreme heat watch.The state is primarily served by Exelon units Baltimore Gas and Electric and Potomac Electric Power Company, First Energy subsidiary Potomac Edison and Delmarva Power.An extreme heat warning was also raised for almost all of Indiana, except for South Bend, Warsaw, Plymouth, Angola, and Gary; and for a majority of Illinois barring Princeton, Freeport, Rockford, Dixon, Ottawa, Joliet, Delkalb, Waukegan, Aurora, and Chicago. Also in Illinois, Aurora and Delkalb were placed under a flash flood warning, while a flood warning was raised for Canton, Havana, Jacksonville, areas near Carlinville, and Olney.Indiana is primarily served by Duke Energy, AEP subsidiary Indiana Michigan Power, NiSource (NI) unit Northern Indiana Public Service Company, AES unit AES Indiana, and CenterPoint Energy (CNP). Ameren's (AEE) Illinois unit and Exelon subsidiary ComEd are among the major service providers in Illinois,Also covered under an extreme heat warning watch were Missouri's Rockport, Grant City, Maryville, Bethany Trenton, Kirksville, St. Joseph, Plattsburg, Chillicothe, Carrollton, Moberly, Macon, Boonville, Sedalia, Centerville, Poplar Bluff, Sikeston, Cape Girardeau, Jefferson City, Clinton, Buttler, Harrisonville, Warrensburg, Kansas City, Columbia and St. Louis. Evergy (EVRG), Ameren's Missouri unit, and Algonquin Power & Utilities (AQN) subsidiary Liberty are the major service providers in Missouri.In New York, a similar warning was used for Geneva, Ithaca, Elmira, Syracuse, Binghamton, Utica, Oneonta, Monticello, Poughkeepsie, Middletown, Newburgh, New York, Peekskill, Saratoga Spring, Glens Falls, Albany, Herkimer, and Plattsburgh. Consolidated Edison (ED) units Consolidated Edison Company of New York and Orange & Rockland, National Grid (NGG), Avangrid subsidiaries New York State Electric & Gas and Rochester Gas and Electric, and Fortis unit Central Hudson Gas & Electric are among the major suppliers in New York.Michigan's Detroit, Ann Harbour, Fort Huron, and Flint, primarily served by CMS Energy (CMS) unit Consumers Energy, and DTE Energy (DTE), were also covered under an extreme heat warning.Affected areas in Pennsylvania include Clarion, Butler, Pittsburgh, Indiana, Altoona, Gettysburg, Lancaster, York, Harrisburg, Williamsport, State College, Lock Haven, Scranton, Reading, Allentown. The state is primarily served by Exelon unit PECO Energy, PPL subsidiary PPL Electric Utilities, Duquesne Light Company and FirstEnergy through its various subsidiaries.In West Virginia, Moorefield, Kaiser, Martinsburg, Huntington, Charleston, Sutton, Parkersburg, Clarksburg, Fairmont, and Morgantown were placed under an extreme heat warning. These places primarily fall under the service area of American Electric Power's Appalachian Power Company and FirstEnergy subsidiaries Mon Power and Potomac Edison.A similar warning was raised for Virginia's Winchester, Leesburg, Luray, Washington, Warrenton, Fredericksburg, Culpeper, Dale City, Charlottesville, Emporia, Franklin, South Hill, Virginia Beach, Richmond, Farmville, Williamsburg, Ashland, Louisa, Tappahannock, and Accomac. Appalachian Power Company and Dominion Energy (D) are the major electric utility service providers in the state.Affected areas in Iowa included Lamoni, Ottumwa, Burlington and Keokuk. Decorah and Charles City were covered under a flood warning, while Des Moines was placed under watch for flash floods. Berkshire Hathaway Energy unit MidAmerican Energy and Alliant Energy (LNT) are primary service providers in the state.Extreme heat warnings were also issued for parts of Kansas, Tennessee, North Carolina, Vermont, Maine and New Hampshire.The NWS also raised flash flood warnings for parts of Nebraska and South Dakota, while small pockets of Minnesota, Louisiana, Mississippi, and Georgia were placed under a flood warning.

$AEE$AEP$AES$AQN$BKH$CMS$CNP$D$DTE$DUK$ED$ES$EVRG$EXC$FE$LNT$NGG$NI$PPL$PSEG$XEL
Research

Jefferies Upgrades Dominion Energy to Buy From Hold, Adjusts Price Target to $76 From $65

Dominion Energy (D) has an average rating of hold and mean price target of $68, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

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Equities

S&P 500 Posts Eighth Consecutive Weekly Gain Led by Health Care, Utilities

The Standard & Poor's 500 index rose 0.9% this week, its eighth consecutive week of gains, amid upbeat trading heading into the holiday weekend.The S&P 500 ended Friday's session at 7,473.47, close to the record closing high it reached last week of 7,501.24.This marks the longest weekly winning streak since a nine-week run that ended in December 2023. The index is now up 3.7% for May and has climbed 9.2% in 2026.Government data this week showed US housing starts decreased less than estimated in April amid a jump in multi-family projects, while the single-unit component declined. Separate data from the National Association of Home Builders and Wells Fargo also showed US homebuilder confidence unexpectedly rose in May despite elevated mortgage rates, macro uncertainty and continued affordability challenges.US consumer sentiment, however, declined to a fresh record low in May amid fears that high gasoline prices could erode purchasing power, the University of Michigan said Friday. The main sentiment index tumbled 10% to 44.8 from last month. The consensus in a Bloomberg-compiled poll was for May's print to stay unchanged from a preliminary 48.2 estimate.The health care and utilities sectors led the gainers this week, climbing 3.3% each, followed by a 3% boost in real estate, a 1.9% gain in consumer discretionary and a 1.6% rise in financials. Technology, industrials and materials also edged higher.DexCom (DXCM) had the largest percentage increase in health care, jumping 17% on the week. The company announced the launch of its Dexcom Flex, a continuous glucose monitoring system for adults with Type 2 diabetes who are not using intensive insulin therapy, in Germany.The utilities sector's top gainers included shares of Dominion Energy (D), which unveiled an agreement to merge with NextEra Energy (NEE) in an all-stock deal to create the largest regulated electric utility in the world. Dominion shareholders will receive a 25.5% stake in the combined entity, while NextEra's shareholders will own about 74.5% of the merged company. Dominion's stock climbed 9.6% while NextEra, the only weekly decliner in the sector, lost 5.2%.Communication services fell 1.9%, while consumer staples shed 1% and energy edged down 0.4%.The hardest-hit stocks in communication services included shares of Take-Two Interactive Software (TTWO), which fell 6.1% on the week. The company posted a narrower-than-expected fiscal Q4 loss on higher-than-expected revenue but its fiscal 2027 guidance came in below analysts' mean estimates.Next week will have just four trading days as the US stock market will be closed on Monday for Memorial Day.Earnings reports are expected from companies including Costco Wholesale (COST), Dell Technologies (DELL) and Salesforce (CRM).Economic data will include the April personal consumption expenditures index, which is the Federal Reserve's preferred inflation measure, on Friday. Other reports will include May consumer confidence, April new home sales, and the second revision to Q1 gross domestic product.

Dow JonesNasdaq CompositeS&P 500$COST$CRM$D$DELL$DXCM$NEE$TTWO
Commodities

Market Chatter: NextEra to Buy Caliber Resource for $1.3 Billion; Form Shale JV With Quantum

NextEra Energy (NEE), the world's largest electric utility, has reportedly agreed to acquire Caliber Resource Partners, a US-focused oil and gas investment firm, in a $1.3 billion deal, according to a Reuters report, citing four separate sources familiar with the matter.Additionally, NextEra will setting up a joint venture with Caliber's private equity backer, Quantum Capital Group, to manage the former's US shale assets.This comes just days after the company announced its merger with Dominion Energy (D), in a deal worth $67 billion, making the combined entity, the largest supplier of power to data centers.Under the deal, a NextEra subsidiary would acquire Caliber's portfolio of passive interests across multiple US onshore shale assets. These non-operated stakes allow investors to receive production revenue while avoiding direct responsibility for drilling operations.The new joint venture with Quantum will focus on additional investments aimed at expanding NextEra's portfolio of natural gas producing assets.This comes amid soaring energy demand from AI data centers, with natural gas-fired power generation emerging as a key source of supply.Neither NextEra, nor Quantum Capital Group immediately responded to' request for a comment on this story.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Research

Research Alert: CFRA Maintains Hold Opinion On Shares Of Dominion Energy, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We see more favorable risk/reward for D vs. NEE. For now, our base case assumes the merger falters on regulatory hurdles. In this situation, we don't expect D shares to fall to the ~$62 pre-announcement price due to the $4.83B breakup fee D will receive if the deal falls through. In the simplest situation, the cash influx equates to a ~$5.50 per share valuation boost, where we see a rough valuation floor around $67. D could deploy the breakup fee to reduce debt, lower future financing needs for its capital plan, pursue bolt-on acquisitions, or return capital to shareholders. Based on May 19 closing and the .8138 exchange ratio, the market is pricing in a ~7.6% risk premium for deal failure. We expect that to narrow on positive developments. Currently, we see a valuation ceiling of ~$86 based on our $106 NEE price target. We lift our 12-month target by $8 to $72, 20.0x our next-12-month EPS estimate of $3.58. Our 2026 and 2027 EPS views are kept at $3.59 and $3.81 respectively and reflect standalone D.

$D
Commodities

NextEra-Dominion Deal Could Drive Long-Term Shareholder Value, DA Davidson Says

NextEra Energy's (NEE) $67 billion acquisition of Dominion Energy (D) will likely create value for shareholders over the long term, DA Davidson analysts said in a note to clients Tuesday.DA Davidson is not yet adjusting price targets for NextEra, citing the deal's expected 12- to 18-month closing timeline.The successful long-term integration of Dominion Energy could drive shareholder value "fairly quickly" after deal completion, analysts said.The firm cited NextEra's strong execution track record in the regulated utilities sector and its favorable balance sheet as supporting factors.Analysts said the "addition of attractive jurisdictions for data center growth could result in a higher-growth profile for the combined company."On Monday, NextEra Energy offered to acquire Dominion Energy in an all-stock transaction.The deal would create the largest utility merger in US history, according to the note.The combined company would carry an enterprise value of about $420 billion and a market capitalization of about $249 billion under the proposed transaction structure.Dominion shareholders will receive 0.8138 shares of NextEra Energy valued at $75.98 per share, representing about a 23% premium to Dominion's May 15 closing price of $61.73.The transaction also includes the current quarterly dividend through closing, a one-time $360 million cash payment, the note added.NextEra shareholders would own about 74.5% of the combined company after closing, while Dominion shareholders would hold the remaining 25.5%.NextEra CEO John Ketchum will continue leading the combined company, while Dominion CEO Robert Blue will become CEO of NextEra Energy Regulated Utilities.Dominion's Virginia, North Carolina and South Carolina utility operations will keep their existing names, while the merged company will maintain headquarters in Juno Beach, Florida and Richmond, Virginia.Management said the merger should help meet rising electricity demand while maintaining affordable power prices across the combined company's regulated utility footprint, including Virginia, North Carolina and South Carolina.The deal is expected to increase NextEra's regulated business mix to about 80% from roughly 70%, according to the note.It will also support more than 9% annual adjusted EPS growth through 2035, maintain 6% annual dividend growth through 2028 and potentially improve Dominion's credit ratings, analysts said.Management said NextEra and Dominion built more power generation over the past five years than the next 25 largest US utilities combined.The merger is also expected to improve project costs and timelines, support about $59 billion in annual capital spending between 2027 and 2032, and expand artificial intelligence and data analytics capabilities, according to the management.DA Davidson maintained a $105 price target on NextEra based on a roughly 26-times price-to-earnings multiple applied to its 2026 adjusted earnings-per-share estimate of $4.05.The firm set an upside case target of $125 using a 30-times multiple and a downside case target of $75 using a 20-times multiple, while citing execution risks, interest rates and inflation pressures.

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NextEra-Dominion Merger Likely Faces Lengthy Virginia Review, RBC Says
US Markets

NextEra-Dominion Merger Likely Faces Lengthy Virginia Review, RBC Says

The NextEra Energy (NEE) and Dominion Energy (D) merger likely faces a lengthy regulatory review in Virginia, RBC Capital Markets said in a note emailed Tuesday.The companies announced an all-stock deal on Monday that would create the largest regulated electric utility in the world. Dominion's shareholders will hold a 25.5% stake in the combined entity.The expected statutory timeline in Virginia is up to six months, Dominion Chief Executive Robert Blue said during a conference call on Monday, according to a FactSet transcript. "If we expect to file in July, then you're looking at a decision from the Virginia (State Corporation) Commission in January," he said.RBC expects the Virginia commission to take the full time before deciding on the application, in line with how it has handled past deals, analyst Stephen D'Ambrisi said in the note. Dominion unit Virginia Electric and Power Co.'s size relative to companies involved in prior mergers is another reason this regulatory process may take time.The companies said they plan to offer $2.25 billion in bill credits for Dominion customers in Virginia, North Carolina and South Carolina over a two-year period after the deal completes.That move is aimed at trying to get ahead of "potential regulatory pushback," D'Ambrisi said.Regulators are also expected to scrutinize the combined company's New England Power Pool position for potential divestiture requirements, RBC said.NextEra's Seabrook facility in New Hampshire and Dominion's Millstone facility in Connecticut control more than 10% of the New England Power Pool's generating capacity, according to the RBC note.RBC reiterated its sector perform rating on Dominion's stock and raised the price target to $72 from $66 to reflect the implied deal consideration.Price: $89.67, Change: $+0.63, Percent Change: +0.71%

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Wire

Dominion Faces Lengthy Virginia Review, Possible Asset Sales in NextEra Deal, RBC Says

Dominion Energy (D), which has agreed to be acquired by NextEra Energy (NEE), faces a lengthy regulatory review in Virginia and possible asset-sale requirements before the deal can close, RBC Capital Markets said Monday in a report.The Virginia State Corporation Commission is expected to take the full 180-day review period because Dominion's subsidiary, Virginia Electric and Power Company, is the state's dominant utility, giving regulators a large and complex system to evaluate, the report said.Regulators may push for divestitures tied to the New England Power Pool, RBC said, noting that NextEra owns the Seabrook nuclear plant in New Hampshire and Dominion owns Millstone in Connecticut. Together, the two facilities account for more than 10% of the region's generating capacity, a level that could raise competition concerns, the report said.RBC raised its price target on Dominion stock to $72 from $66 and reiterated its sector-perform rating.Price: $68.09, Change: $+0.53, Percent Change: +0.78%

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Wire

NextEra, Dominion Merger Expands Data Center Growth Opportunities, Morgan Stanley Says

NextEra Energy's (NEE) all-stock merger with Dominion Energy (D) is expected to create a $400 billion enterprise value utility and energy infrastructure company uniquely positioned to capitalize on the massive power demands of data centers, Morgan Stanley said in a report Tuesday.The deal offers "modest" near-term earnings "accretion" and supports projected long-term earnings per share growth of more than 9% through 2035, the firm said. NextEra shareholders will own roughly 74.5% of the combined company, the report noted.The investment bank said the main driver of the deal is sheer "scale," which is becoming critical as data centers grow larger and supply chains tighten. The combined entity is expected to boast a pipeline of more than 130 gigawatts of "large-load customer" demand, according to the report.Morgan Stanley maintained an overweight rating on NextEra Energy and raised its price target to $115 from $107, noting that the deal is expected to close within 12 to 18 months, pending federal and state regulatory approvals.Price: $89.01, Change: $-0.04, Percent Change: -0.04%

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Asia Markets

US Equity Indexes Off Session Lows as Trump Postpones Iran Attack

US equity indexes closed mixed, albeit off session lows, as President Donald Trump agreed to delay a "large-scale" attack on Iran on Tuesday at the request of leaders from the Middle East negotiating with Tehran.The Nasdaq Composite fell 0.5% to 26,090.73, with the S&P 500 down less than 0.1% to 7,403.05 on Monday. The Dow Jones Industrial Average rose 0.3% to 49,686.12. Technology and industrials led decliners at the close. Energy, financials, and consumer staples were among the top gainers.President Trump will "hold off" on a Tuesday plan to attack Iran, citing a request from Qatar, Saudi Arabia, and the United Arab Emirates as he said negotiations to end the war grow more "serious," CNN reported Monday. "This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN," Trump was cited as saying.Trump also instructed his leadership "to be prepared to go forward with a full, large-scale assault of Iran, on a moment's notice" if a deal isn't reached, according to the president's Truth Social post.Meanwhile, Iran offered an updated peace proposal, which the White House adjudged lacking meaningful improvement over the previous offer, rendering the latest version insufficient to reach a deal to end the war, a senior US official and a source briefed on the issue told Axios.Separately, the US has agreed to release a quarter of Iran's frozen funds - totaling tens of billions of dollars - held in foreign banks, a senior Iranian source told Reuters. Washington has shown more flexibility in allowing Iran to continue some peaceful nuclear activity under the supervision of the International Atomic Energy Agency, the source told the news agency.West Texas Intermediate crude oil futures climbed 1% to $106.48, and Brent crude futures fell 0.4% to $108.83.US Treasury yields slipped after trading mixed earlier in the session. The 10-year was little changed at 4.59%, the highest in about a year. The 30-year rate was steady at 5.13%, the strongest level since 2007.In precious metals, gold futures rose 0.2% to $4,568.8, and silver futures climbed 0.5% to $77.97, clawing back all declines from earlier in the session.In economic news, the National Association of Home Builders' monthly housing market index rose to a reading of 37 in May from 34 in April, compared with expectations for a 34 print in a survey compiled by Bloomberg. The index was above the 34 print reported a year earlier.The New York Federal Reserve's services index improved to minus 5.8 in May from minus 14.0 in April, the highest level since January 2025. The index is the first services sector reading for May and suggests a slower contraction.In company news, NextEra Energy (NEE) and Dominion Energy (D) agreed to merge in an all-stock deal to create the world's largest regulated electric utility. Shares of Dominion jumped 9.4%, the second-biggest gainer on the S&P 500.Regeneron Pharmaceuticals' (REGN) miss on the fianlimab trial may lead some investors to question the company's broader strategy and execution, RBC Capital Markets said. Regeneron's shares sank 9.8%, the steepest decline on the S&P 500 and the Nasdaq.

Dow JonesNasdaq CompositeS&P 500$D$NEE$REGN
Equity Markets Mixed as Trump Aborts Plan to Attack Iran
US Markets

Equity Markets Mixed as Trump Aborts Plan to Attack Iran

US equity markets closed mixed Monday as President Donald Trump said the US was postponing a plan to attack Iran on Tuesday.The Nasdaq Composite declined 0.5% to 26,090.7, while the Dow Jones Industrial Average rose 0.3% to 49,686.1. The S&P 500 closed 0.1% lower at 7,403.1. Most sectors were in the green, led by energy, while technology saw the steepest decline.Trump said the US will hold off on its planned military attack against Iran that was previously scheduled for Tuesday, according to his social media post on Monday.Trump said Middle Eastern leaders, including Saudi Arabia Crown Prince Mohammed bin Salman, asked the US president to call off the attack amid "serious" ongoing negotiations to end the Washington-Tehran conflict.Trump, however, cautioned that the US will "go forward with a full, large scale assault of Iran" if a deal is not reached.Brent crude fell 0.4% to $108.85 per barrel in Monday late-afternoon trade, while West Texas Intermediate crude was last up 0.9% at $106.34 per barrel.Trump's latest rhetoric follows reports that Iran had provided an updated proposal for a deal to end the war. The White House indicated it doesn't reflect a meaningful improvement from a previous offer, Axios reported Monday, citing a senior US official and a source briefed on the matter.The Strait of Hormuz -- the world's most important chokepoint for crude flows -- remains largely shut as tensions between the US and Iran continue, with no end in sight."Progress on US-Iran peace talks continues to be immaterial, with both parties expressing a willingness to resume overt hostilities if the talks fail," Tudor Pickering Holt Analyst Matt Portillo said in a note sent earlier in the day.US Treasury yields were little changed in Monday late-afternoon trade, with the 10-year rate at 4.59% and the two-year rate at 4.07%.Nvidia (NVDA) shares fell 1.3%, the second-worst performer on the Dow. The chipmaking giant is expected to exceed Wall Street's first-quarter estimates and guide above consensus amid positive data points, Wedbush Securities said.Nvidia is scheduled to release its latest quarterly results after the markets close Wednesday.Retail giants Walmart (WMT), Home Depot (HD), TJX (TJX), Lowe's (LOW) and Target (TGT) are also expected to report this week. Home Depot and Lowe's are likely to lower their full-year guidance as the home improvement retailers face pressure from weak consumer sentiment, Oppenheimer said in a note.NextEra Energy (NEE) and Dominion Energy (D) agreed to merge in all-stock deal to create the largest regulated electric utility in the world. Dominion shares jumped 9.4%, the second-biggest gainer on the S&P 500, while NextEra fell 4.6%.In economic news, US homebuilder confidence unexpectedly rose this month despite elevated mortgage rates, macro uncertainty and continued affordability challenges, data from the National Association of Home Builders and Wells Fargo showed."Soft homebuilder sentiment is consistent with our view that housing starts will mostly move sideways for the next couple of quarters before starting to edge up slightly around year-end, when we expect mortgage rates to be lower as the (Federal Reserve) implements the first of two rate cuts we expect," Oxford Economics said in a note.Gold was up up 0.1% at $4,564.40 per troy ounce in Monday late-afternoon trade, while silver rose 0.3% to $77.80 per ounce.

Dow JonesNasdaq CompositeS&P 500$D$HD$LOW$NEE$NVDA$TGT$TJX$WMT
Sectors

Sector Update: Energy Stocks Gain Late Afternoon

Energy stocks were higher late Monday afternoon, with the NYSE Energy Sector Index rising 1.8% and the State Street Energy Select Sector SPDR ETF (XLE) adding 1.7%.The Philadelphia Oil Service Sector Index was climbing 3.2%, and the Dow Jones US Utilities Index was down 0.5%.Crude oil prices rose Monday amid a lack of progress on US-Iran peace talks. Iran has submitted its new proposal to end the war, but the White House believes it fails to offer meaningful improvements on the last offer, Axios reported Monday, citing a senior US official and a source briefed on the issue.Front-month West Texas Intermediate crude oil was rising 1% to $106.42 a barrel, and the global benchmark Brent crude contract was advancing 0.4% to $109.70 a barrel. Henry Hub natural gas futures rose 2% to $3.02 per 1 million BTU.In corporate news, NextEra Energy (NEE) and Dominion Energy (D) said they have agreed to merge in all-stock deal to create the largest regulated electric utility in the world. Dominion's shareholders will get 0.8138 of NextEra's shares for each share owned, giving them a 25.5% stake in the combined entity, they said, adding that NextEra's shareholders will have the balance. NextEra was down 4.7%, and Dominion jumped past 9%.Devon Energy (DVN) may see support from its upcoming combined company guidance with Coterra Energy in June, possible asset sales, merger synergies, stronger shareholder returns, and continued investment in Delaware Basin assets, RBC said. Devon shares added 0.5%.ConocoPhillips (COP) and Glenfarne Group's subsidiary have signed a 30-year agreement to supply North Slope natural gas for phase one of the Alaska LNG project, the companies said Monday. ConocoPhillips shares rose 1.7%.Compass Minerals International (CMP) said it plans to re-enter the lithium market via a partnership with startup EnergyX to extract lithium from Utah's Great Salt Lake, Reuters reported. Compass shares fell 1.1%.

$CMP$COP$D$DVN$NEE
International

US Equity Markets Mixed as Investors Weigh Reports of Iran's Updated Peace Proposal

US equity indexes were mixed on Monday as investors weighed reports of an updated peace proposal from Iran.* Iran has offered an updated proposal, which the White House sees as lacking meaningful improvement over the previous offer, rendering the latest version insufficient to reach a deal to end the war, a senior US official and a source briefed on the issue told Axios.* The National Association of Home Builders' monthly housing market index rose to a reading of 37 in May from 34 in April, compared with expectations for a 34 print in a survey compiled by Bloomberg.* The New York Federal Reserve's services index improved to minus 5.8 in May from minus 14.0 in April, the highest level since January 2025.* June West Texas Intermediate crude oil rose $0.73 to settle at $106.15 per barrel, while July Brent crude, the global benchmark, was last seen down $0.02 at $109.18.* NextEra Energy (NEE) and Dominion Energy (D) agreed to merge in an all-stock deal to create the world's largest regulated electric utility. Shares of Dominion were up about 9.3%, the biggest gainer on the S&P 500.* Regeneron Pharmaceuticals' (REGN) miss on the fianlimab trial may lead some investors to question the company's broader strategy and execution, RBC Capital Markets said in a note. Regeneron's shares fell nearly 10%, the steepest decline on the S&P 500 and the Nasdaq.

Dow JonesNasdaq CompositeS&P 500$D$NEE$REGN
Wire

Top Midday Gainers

B. Riley upgraded Zscaler (ZS) to buy, with a $225 price target, ahead of the company's fiscal Q3 results on Tuesday next week.Shares of Zscaler were up 10%, with intraday trading volume at nearly 3.89 million from a daily average of over 3.13 million.Cognizant Technology Solutions (CTSH) increased its 2026 share repurchase target by $1 billion to $2 billion, the company said Monday.Shares advanced 8.4%, with intraday trading volume at almost 7.98 million from a daily average of about 6.75 million.NextEra Energy (NEE) and Dominion Energy (D) agreed to merge in an all-stock deal to create the world's largest regulated electric utility.Shares of Dominion jumped 9.1%, with intraday trading volume at over 25.3 million compared with a daily average of about 4.90 million.Price: $177.16, Change: $+16.11, Percent Change: +10.00%

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