U.S. stock futures rose Friday and pointed to fresh record highs, capping off a strong week for stocks on the heels of strong economic data and corporate earnings results.
7:50 a.m. ET: Schlumberger shares rise after earnings beat
Oilfield services provider Schlumberger (SLB) posted stronger than expected fourth-quarter results, with adjusted earnings per share (EPS) of 39 cents on revenue of $8.23 billion ahead of consensus estimates for adjusted EPS of 35 cents on revenue of $8.14 billion. Shares rose 2.6% in early trading.
However, the company’s North American revenues fell 13% over last year in the fourth quarter to $2.45 billion. Schlumberger signaled it would continue to pare back its North American business amid falling demand from shale producers.
As one of the world’s largest oilfield services provider, Schlumberger is often looked to as a bellwether for global energy markets. To that end, Schlumberger CEO Olivier Le Peuch provided mostly upbeat commentary around prospects for the oil market in 2020, according to a statement.
“From a macro perspective, we ended the year with 2020 oil demand growth sentiment turning positive as uncertainty reduced following the progress made toward a US-China trade deal. The fall in the North America production growth estimate of between 400,000 to 800,000 bpd should continue to support the thesis for international investment. The recent escalation of geopolitical risk should set the floor for the oil price going forward. In the near term, we expect the OPEC+ production cuts agreed upon in December 2019 to limit investment and activity, particularly in the Middle East and Russia, during the first half of 2020. As the year progresses, the effect of slowing North America production growth is likely to cause tightness in the market and further stimulate international operators to step up their investments in the second half of the year and beyond.”
7:32 a.m. ET: Stock futures rise after upbeat China data
Stock futures extended gains in early trading after more upbeat data from China signaled the world’s second largest economy was firming. The S&P 500 and Dow paced to open at record highs.
China’s gross domestic product rose 6% in the fourth quarter of 2019, matching the prior quarter’s pace and matching consensus expectations. This brought full-year 2019 GDP to expand at a pace of 6.1% – a near 30-year low but in-line with the government’s target for annual growth of between 6% to 6.5%.
In further signs of resurgence for the Chinese economy, fixed-asset investment and industrial output also rose strongly in December. And economists are largely banking on a newly signed U.S.-China phase one trade deal to further provide boosts to consumer confidence in the country.
Here were the main moves during the pre-market session, as of 7:32 a.m. ET:
S&P futures (ES=F): 3,323.25, up 6.75 points or 0.2%
Dow futures (YM=F): 29,308, up 68 points or 0.23%
Nasdaq futures (NQ=F): 9,165.25, up 31.75 points or 0.35%
Crude oil (CL=F): $58.74 per barrel, up $0.22 or 0.38%
Gold (GC=F): $1,558.30 per ounce, up $7.80 or 0.5%
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