SLB

Stock Performance: Baker Hughes Co. shares fell 13.34% to $35.41, marking a second consecutive day of losses amid a broader market decline.

Market Context: The S&P 500 Index dropped 5.97% and the Dow Jones Industrial Average decreased by 5.50% during the same trading session.

Stock Performance: APA Corp. shares dropped 14.43% to $15.18 amid a challenging trading session for the stock market, with significant declines in major indices like the S&P 500 and Dow Jones Industrial Average.

Consecutive Losses: This decline marks the second consecutive day of losses for APA Corp. shares.

Impact of Tariffs on Oilfield Services: U.S. oilfield service firms are facing potential revenue declines due to President Trump's tariffs and falling oil prices, with estimates suggesting a 2-3% dip in oilfield revenue by 2025 for major companies like SLB, Halliburton, and Baker Hughes.

Market Reactions and Economic Concerns: Following tariff announcements, shares of major oil service firms plummeted, while crude oil prices dropped significantly, raising fears of a recession as JP Morgan increased the likelihood of a global economic downturn to 60%.

Impact of Tariffs on U.S. Markets: U.S. tech companies, banks, and oil majors experienced significant declines in stock prices following China's announcement of retaliatory tariffs and export controls against U.S. goods, raising concerns about a potential global economic downturn.

Sector-Specific Reactions: Companies heavily reliant on China, such as Tesla and Apple, faced increased pressure on margins and sales, while broader market fears affected various sectors including automakers, luxury brands, and semiconductor firms due to anticipated supply chain disruptions and reduced consumer demand.

Consumer Products Sector Performance: As of midday Tuesday, the Consumer Products sector is leading with a 0.2% increase, highlighted by Tesla Inc's gain of 5.8% and Tapestry Inc's rise of 3.3%, despite Tesla being down 32.09% year-to-date.

Energy Sector Update: The Energy sector follows closely with a 0.1% increase, featuring Baker Hughes Company and Schlumberger Ltd with gains of 1.0% and 0.9%, respectively, both showing positive year-to-date performance.

Market Decline: Major US stock indexes, including the S&P 500 and Nasdaq 100, fell sharply due to escalating trade tensions after China announced a 34% tariff on all US imports, pushing the S&P 500 to an 11-month low and raising concerns about potential recession impacts on the economy.

Economic Indicators: Despite a stronger-than-expected rise in March nonfarm payrolls, the unemployment rate increased slightly, and average hourly earnings growth was weaker than anticipated, contributing to a risk-off sentiment in the markets and a flight to safety into government bonds.

Market Decline: Major US stock indexes, including the S&P 500 and Nasdaq 100, experienced significant declines, reaching 11-month and 9-month lows respectively, largely due to escalating trade tensions between the US and China, with China imposing a 34% tariff on US imports in retaliation to US tariffs.

Economic Impact: Fed Chair Powell warned that the economic consequences of the trade war could be more severe than anticipated, potentially leading to slower growth and higher inflation, while a stronger-than-expected payroll report provided some support for stocks despite rising unemployment rates.

Market Performance: Major US stock indexes, including the S&P 500 and Nasdaq, fell sharply to 7-3/4 month lows due to escalating trade tensions after China imposed a 34% tariff on all US imports, while US nonfarm payrolls exceeded expectations but unemployment rose slightly.

Sector Impact: Tech stocks and travel-related companies faced significant declines amid fears of rising consumer prices from tariffs, while defensive sectors like food and beverage saw gains as investors sought safety in the market turmoil.

Dividend Predictability: Dividend amounts are often unpredictable and fluctuate with a company's profitability, as illustrated by Schlumberger Ltd's historical dividend performance.

Investment Insight: The article suggests evaluating Schlumberger's dividend history to assess the likelihood of maintaining a 3% annual yield, while also mentioning other dividend stocks recently available for investment.

Energy Sector Performance: The Energy sector is underperforming with an 8.1% loss, led by APA Corp and Schlumberger Ltd, which are down 12.6% and 11.3%, respectively. The Energy Select Sector SPDR ETF (XLE) is also down 7.3% for the day and 5.33% year-to-date.

Technology & Communications Sector Performance: The Technology & Communications sector shows a 5.0% loss, with Micron Technology Inc. and Intel Corp losing 11.1% and 10.2%, respectively. The Technology Select Sector SPDR ETF (XLK) is down 4.8% on the day and 19.90% year-to-date.

SLB's Major Contract: SLB has secured a significant drilling contract from Woodside Energy for the ultra-deepwater Trion development project in Mexico, which involves the delivery of 18 wells utilizing advanced AI-enabled drilling technologies.

Project Details and Timeline: The contract encompasses various services including digital directional drilling and will commence in early 2026, leveraging local talent and supply chains to ensure timely project execution.

SLB Contract Award: SLB has been awarded a significant drilling contract by Woodside Energy for the Trion project offshore Mexico, involving the delivery of 18 ultra-deepwater wells utilizing AI-enabled drilling technology to enhance efficiency and well quality.

Project Details: The Trion project, valued at $7.2 billion, is located 180 km off the Mexican coast at a depth of 2,500 m, with plans to drill a total of 24 wells over its lifespan, aiming for first production in 2028.

Drilling Contract Awarded: SLB has secured a significant drilling contract from Woodside Energy for the ultra-deepwater Trion development project in Mexico, which includes the delivery of 18 wells over three years using advanced AI-enabled drilling technologies.

Project Timeline and Collaboration: Services are set to commence in early 2026, with first production expected in 2028, as Woodside collaborates with Pemex on this challenging offshore project.

Schlumberger NV Analysis: Schlumberger NV (SLB) has received an 80% rating from Validea's Earnings Yield Investor model, indicating strong interest based on its fundamentals and valuation in the Oil Well Services & Equipment industry.

Joel Greenblatt's Investment Strategy: The report highlights Joel Greenblatt's "Magic Formula" for stock selection, which emphasizes high returns on capital and earnings yields, demonstrating significant historical success in outperforming market averages.

Schlumberger NV Analysis: Schlumberger NV (SLB) has received an 80% rating from Validea's Earnings Yield Investor model, indicating strong interest based on its fundamentals and valuation in the Oil Well Services & Equipment industry.

Joel Greenblatt's Investment Strategy: The report highlights Joel Greenblatt's "Magic Formula" for stock selection, which emphasizes high returns on capital and earnings yields, demonstrating significant historical success in outperforming market averages.

Conference Call Announcement: SLB will hold a conference call on April 25, 2025, at 9:30 am ET to discuss Q1 results, with a press release issued at 7:00 am ET. Access details for the call and webcast are provided.

Company Overview: SLB is a global technology company focused on energy innovation, operating in over 100 countries and working on oil and gas innovation, digital solutions, decarbonization, and new energy systems.

Analyst Ratings Overview: Recent evaluations of Schlumberger by 8 analysts show a mix of bullish and bearish sentiments, with an average price target decrease of 7.58% to $53.25, reflecting adjustments in market outlooks over the past three months.

Financial Performance Insights: Schlumberger demonstrates strong financial health with a net margin of 11.79%, ROE of 5.14%, and a debt-to-equity ratio of 0.57, indicating effective cost management and a conservative approach to debt financing despite facing lower revenue growth compared to industry peers.

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Market Performance: Major US stock indexes are down, with the S&P 500 falling -1.08% and the Nasdaq 100 down -1.76%, largely due to trade uncertainties and weakness in key tech stocks, while energy stocks see gains amid rising crude prices.

Economic Indicators: Concerns over reduced corporate capital spending due to tariffs and economic uncertainty persist, highlighted by a decline in US core capital goods orders; upcoming economic reports on GDP and personal spending are anticipated to provide further insights.

Market Overview: The stock market is mixed with the Dow Jones up 0.46% and the S&P 500 down 0.09%, influenced by US trade uncertainties, declining capital goods orders, and geopolitical tensions in the Middle East.

Stock Movements: Major tech stocks are underperforming, while energy stocks are rising due to increased crude prices; notable movers include Cintas Corp, which saw an 8% increase after raising its earnings forecast, and Chewy, which fell over 2% after disappointing sales projections.