Chevron snaps back; Alpha Natural dives

NEW YORK (MarketWatch) � Chevron Corp. turned in the best performance among components of the Dow Jones Industrial Average on Friday, while Alpha Natural Resources fell sharply, as energy stocks ended a losing week in the red.

In a late-day surge, Chevron CVX �ended the session with a gain of 1.1% as the top stock among the 30 issues in the Dow Jones Industrial Average DJIA , which fell 49 points.

S&P Equity Research reiterated its strong buy rating on Chevron and said the oil company remains attractively valued, below peers on most metrics.

Checking the broad energy sector benchmarks the NYSE Arca Oil Index XX:XOI �dropped 0.3%, the NYSE Arca Natural Gas Index XX:XNG �fell 0.6% and the Philadelphia Oil Service Index OSX �moved down by 1%.

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Energy stocks took their cue from the broad equities market on jitters tied to an expected European debt downgrade, and weaker-than-expected November U.S. trade deficit data.

Among energy stocks on the move, Alpha Natural ANR �dropped 10.5% as the worst performer among stocks in the S&P 500, as investors reacted to a downbeat assessment of the coal market from a key competitor. Fellow coal producers Consol Energy CNX �and Peabody Energy BTU �fell by 6% and 4% respectively.

Patriot Coal PCX triggered the move down after it said it would cut its metallurgical coal output in the face of weak demand. Shares of Patriot Coal dropped 12.8% to $7.87, their lowest level since 2009.

Also on the move in the energy sector, Noble Corp. NE �rose 2.3%.

Analysts at Tudor Pickering Holt said the company won a positive deepwater drilling rate with Royal Dutch Shell RDS.A �in the Gulf of Mexico.

However, the analysts trimmed their fourth-quarter profit estimate for Noble to 47 cents a share, from 56 cents a share, because of rig downtime and delayed deliveries.

Energy stocks down for the week

The NYSE Arca Oil Index XX:XOI �ended at 1,237 on Friday, below its ending point of 1,247 seven days ago.

The NYSE Arca Natural Gas Index XX:XNG �closed at 621 on Friday, well below its finish of 653 on Jan. 6.

The Philadelphia Oil Service Index OSX �ended at 223 on Friday, flat with its week-ago level.