Enbridge Inc (ENB)

Shares of Enbridge (ENB) dropped by 3.62% from $33.19 to $31.99 in the trading on Monday October 2, 2023. The reasons why stock ENB is down today includes:

• Wall Street Analyst's View: A notable Wall Street analyst turned bearish on oil prices, and rising long-term interest rates added pressure to high-yield stocks like Enbridge. Despite oil's summer surge above $90 per share, driven by OPEC+ cuts and U.S. economic strength, Citi's commodities analysts offered a less optimistic view on Monday.
• Higher 10-year Treasury yield: Long-term interest rates surged further today. The yield on the 10-year Treasury bond climbed by 12 basis points, marking a new high for 2023 and the highest since 2007. These rising long-term yields will dampen all stocks, especially those like Enbridge, which, despite offering high yields, have low growth prospects akin to fixed-income investments.
• ENB's gas plants announcement: Apart from oil and gas price volatility, investors are apprehensive about Enbridge's $14 billion acquisition of three natural gas plants from Dominion Energy (D). This move will raise Enbridge's debt levels, making it vulnerable should long-term interest rates keep climbing.

Enbridge's shares declined by 5.89% due to investor concerns regarding the potential challenges posed by the Canadian energy distribution and production company's planned acquisition, which may lead to short-term difficulties.

https://www.fool.com/investing/2023/09/06/why-enbridge-stock-is-falling-today/