Core Insights - Companies like Halliburton and SLB have become lean and efficient due to years of discipline [1] Group 1 - Halliburton has implemented strategies that enhance operational efficiency [1] - SLB has also focused on streamlining processes to improve profitability [1] - The trend towards efficiency in these companies reflects broader industry practices [1]

Asian shares have mostly advanced, tracking Wall Street, after US President Donald Trump walked back from imposing tariffs on eight European countries over Greenland and ruled out using military force to take control of the territory.The future for the S&P 500 gained less than 0.1 per cent and that for the Dow Jones Industrial Average was virtually flat on Thursday.Tokyo’s Nikkei 225 climbed 1.7 per cent to 53,688.89, with technology stocks leading gains. SoftBank Group jumped 11.6 per cent and equipment ma ...

The U.S. stock market bounced back from its worst day since October on Wednesday after President Donald Trump said he reached the framework for a deal about Greenland, an island he’s long coveted, and won’t impose tariffs he had threatened on several European countries.The S&P 500 rallied 1.2% after Trump said the deal, “if consummated, will be a great one for the United States of America” and its allies in the North Atlantic region. The announcement triggered an immediate move higher in the stock market, w ...

Market Reaction - The stock market rebounded significantly after President Trump's announcement regarding a potential deal about Greenland and the decision not to impose tariffs on several European countries, with the Dow Jones Industrial Average rising 1.2% (nearly 600 points) to 49,072, the S&P 500 gaining 1.1%, and the Nasdaq advancing over 250 points (1.2%) [1][2][10] Company Performance - Halliburton's stock increased by 2.9% following a stronger-than-expected profit report for the latest quarter [8] - United Airlines saw a 2.7% rise in its stock price after reporting better-than-expected profits for the end of 2025, with CEO Scott Kirby indicating strong revenue momentum continuing into 2026 [8] - Conversely, Netflix's stock dropped by 2.9% despite reporting a stronger profit than anticipated, as investors were concerned about slowing subscriber growth and a lower-than-expected profit forecast for the current quarter [9] - Kraft Heinz's stock fell by 6.3% after Berkshire Hathaway indicated it might sell its 325 million shares in the company [11]

Investment Recommendation - Stephanie initiated a new buy position in SLB, citing a compelling valuation at 138 times earnings and a 3% yield [1][2] - The analyst prefers owning rather than renting in the energy space, suggesting a long-term investment approach [4] SLB's Competitive Advantages and Growth Drivers - SLB is the number one oil field services company globally, poised to benefit from customer spending, with top 10 customers' capex expected to reach $28 billion this year [2] - SLB is a technology leader in its sector, experiencing margin expansion and strong customer retention, further boosted by a synergistic and accretive deal [3] Broader Energy Sector Dynamics - The energy sector has shown positive performance despite a 16% year-to-date decrease in crude oil prices, driven by natural gas [6] - Natural gas prices have risen from below $2 to $5, fueled by a cold winter and global demand for liquified natural gas from the United States [6] - Major diversified companies like Exxon Mobile, involved in natural gas, refining, chemicals, transportation, and distribution, are well-positioned in the energy sector [7] Investment Strategies in Oil and Gas - Stabilizing oil prices in the $60s could make EMP players attractive, suggesting a dollar-cost averaging strategy [5] - Pipelines and mineral rights with high distribution yields, such as Viper Energy and Energy Transfer, are viable investment options [5]

Financial Performance - H&P achieved a direct margin of $242 million in North America Solutions, slightly exceeding the midpoint of guidance[12] - The company's consolidated adjusted EBITDA was $225 million[12] - H&P generated free cash flow of approximately $154 million[12] - Debt repayment of $210 million on $400 million term loan through October, with repayment of the entire term loan expected by end of Q3FY26[12] Operational Highlights - H&P's market share in the Permian Basin has expanded from 29% to approximately 35% over the past five years[13] - Approximately 50% of active rigs are operating under performance-based contracts[12] - Seven rigs are scheduled to resume operations in Saudi Arabia in 2026, increasing the total active rig count in-country to 24[12] - Direct margin of over $64 million in International and Offshore Solutions segments[12] Guidance and Capital Expenditure - Gross capital expenditures for full fiscal year 2026 are guided at $280-$320 million[23] - H&P anticipates over $50 million in cost savings in FY26 SG&A guidance compared to proforma annualized FY25[33]

Market Overview - The S&P 500 is currently only 2.5% off its highs, indicating that there is no immediate cause for concern despite recent volatility [1] - Investors are reassessing the AI trade, questioning whether there is a bubble, as evidenced by significant declines in blue-chip stocks like Oracle and Meta [2][3] AI and Tech Stocks - Oracle has lost one-third of its value since August, while Meta is down nearly 20% in the last month, prompting investors to reconsider their positions [2] - Concerns are growing regarding capital expenditures in AI and the timing and magnitude of potential payoffs [4] - Nvidia's upcoming earnings report is critical, as its performance could significantly influence market sentiment [7][9] Investment Strategies - A cautious approach is being adopted, with many investors taking profits and rebalancing portfolios due to the high concentration of market cap in top AI-related stocks [6] - Despite concerns about an AI bubble, there are still opportunities in tech, with analysts like Dan Ives highlighting potential investments [5] Company-Specific Insights - Craft Heinz is viewed as a cheap stock with an 11% free cash flow yield and a 6.4% dividend, despite its struggles [12][13] - SLB (formerly Schlumberger) is favored due to its position in oil field services and its recent performance, rising 11% in the last month while the S&P 500 remained flat [15][16] - Molina Healthcare is down 46% year-to-date, but is expected to rebound as it adjusts premiums in response to rising claims costs [17][19] Economic Indicators - The Federal Reserve is expected to cut rates, with current speculation around the true unemployment and inflation rates affecting market dynamics [22][24] - The 10-year Treasury yield has been fluctuating around 4%, indicating a stable economic outlook despite some concerns about unemployment [26][28] Tariffs and Affordability - The administration's focus on affordability, including potential tariff adjustments and housing affordability measures, is seen as a positive step for the economy [29]

Core Viewpoint - Saipem's shareholders have approved the merger with Subsea7, which is expected to be completed in the second half of 2026 [1][2]. Group 1: Merger Details - The merger was unanimously approved by shareholders representing 62.15% of the voting share capital at an extraordinary shareholders' meeting [1]. - The merger follows a binding agreement made in July and a memorandum of understanding signed in February [2]. - The merger will occur through an EU cross-border statutory process, with Subsea7 being absorbed into Saipem, which will be renamed Saipem7 [2]. Group 2: Ownership Structure - Siem Industries will own approximately 11.8% of the combined company, while Eni and CDP Equity will hold 10.6% and 6.4%, respectively [3]. - The new entity, Saipem7, is projected to have core earnings exceeding €2 billion ($2.4 billion), an order backlog of €43 billion, and revenue around €21 billion [3]. Group 3: Business Operations - Saipem7 will operate in four business areas: offshore engineering and construction, onshore engineering and construction, sustainable infrastructures, and offshore drilling [4]. - The Subsea7 business will function as an autonomous company under the brand 'Subsea7, a Saipem7 Company', incorporated in the UK with headquarters in London [4]. Group 4: Regulatory Concerns - ExxonMobil, Petrobras, and TechnipFMC have raised objections to the merger, urging Brazil's antitrust regulator to block the transaction and requesting participation in the review process [5].

Boeing - Boeing has secured its largest single order to date, delivering 147,879 planes to Uzbekistan in a deal worth over $8 billion, which has positively impacted its stock price, increasing by more than $4 or nearly 2% [1][2] Energy Sector - The energy sector is experiencing price increases due to geopolitical tensions, particularly involving Russia and NATO countries, which could lead to higher crude oil prices [7] - Companies like Halliburton and Schlumberger are expected to benefit from increased demand for energy services as a result of these tensions [8] Disney - Disney is facing challenges with its late-night television segment, particularly with the Jimmy Kimmel show, which has seen a significant decline in market cap, losing approximately $8 billion since a controversial incident [11][14] - The show is losing affiliates, which could further impact Disney's revenue, and there are concerns about the future of the show and its financial implications [12][13] Nuclear Energy - The nuclear energy sector is gaining attention, particularly with small modular reactors (SMRs), which are expected to provide power for small cities and data centers, indicating a growing market for these technologies [16][17] - Stocks in the nuclear sector have seen significant price increases, with one stock rising from $94 to $142 in a short period, reflecting strong market interest [18]

Core Viewpoint - The energy sector is experiencing mixed performance, with some stocks showing potential for growth despite overall skepticism about the sector's stability [2][9]. Group 1: Top Energy Stocks - Valero is highlighted as the top stock in the energy sector, with an A+ rating and a breakout chart indicating strong performance [2][3]. - Marathon is rated as an A, showing no sellers and a flat 200-day moving average, suggesting potential upward movement [4]. - Baker Hughes is rated B+, recognized as a leading oil field service company, with a breakout potential and a stop at $42 [5]. - Philip 66 is rated C but has the potential to improve to B, as it has maintained a high position in the market [6]. - Chevron is also rated C, with a significant dividend and buyback program, but facing resistance at higher price levels [7][8]. Group 2: Market Context and Performance - The energy sector is currently the best performing sector, with refiners showing strong momentum in price and earnings growth [11][12]. - Stable energy prices, particularly oil in the low $60s, are beneficial for refiners like Valero, Marathon, and Phillips [11]. - The overall sentiment in the energy sector remains cautious, with some investors expressing concerns about overleveraging in their positions [11][12].