Economic Overview - The U.S. stock market experienced a decline, with the Dow Jones down 0.29%, Nasdaq down 0.66%, and S&P 500 down 0.38% for the week [1] - European stock indices showed mixed results, with the UK FTSE 100 up 1.09%, Germany's DAX 30 up 0.14%, and France's CAC 40 down 1.23% [1] - The upcoming week will focus on U.S. GDP data, PCE inflation data, and consumer confidence index, which are expected to provide insights into the Federal Reserve's policy direction [3] Corporate Earnings - The second week of the U.S. earnings season will feature major tech companies like Netflix and Intel, along with industry leaders such as Johnson & Johnson, Abbott, and Halliburton reporting their earnings [4] Commodity Market - Oil prices continued to rise, with WTI crude up 0.54% to $59.44 per barrel and Brent crude up 1.25% to $64.13 per barrel, driven by concerns over potential supply disruptions in Iran [5] - Gold futures for January delivery increased by 2.18% to $4588.40 per ounce, while silver futures rose by 11.69% to $88.09 per ounce, amid geopolitical tensions and market volatility [6] European Economic Outlook - The Eurogroup finance ministers' meeting and the EU finance ministers' meeting are set to discuss fiscal stimulus policies, particularly Germany's fiscal measures, which are crucial for the Eurozone's economic growth outlook [7] - The European Central Bank's monetary policy meeting minutes will be released, with expectations that there will be no interest rate changes this year, but discussions on potential future rate hikes may be of interest [7] Upcoming Economic Data - Key macroeconomic data releases next week include the Eurozone and Germany's January ZEW economic sentiment index, as well as manufacturing PMI data for France, Germany, and the Eurozone [7]

Core Viewpoint - Halliburton Company (HAL) is expected to report fourth-quarter earnings on January 21, with a consensus estimate of 54 cents per share and revenues of $5.4 billion, reflecting a year-over-year decline in both earnings and revenues [1][3]. Summary by Sections Q3 Earnings Highlights - In the third quarter, Halliburton reported an adjusted net income per share of 58 cents, exceeding the Zacks Consensus Estimate of 50 cents, with revenues of $5.6 billion, surpassing estimates by 4% [2]. Performance Trends - Halliburton has matched or beaten the Zacks Consensus Estimate in three of the last four quarters, with the current fourth-quarter estimate indicating a 22.9% decline in earnings year-over-year and a 3.5% decrease in revenues [3]. Factors Influencing Performance - The Drilling and Evaluation segment saw a 2% sequential revenue growth to $2.4 billion in Q3, with operating income increasing by 12% to $348 million, leading to a margin of 16%. Management anticipates flat to a 2% decline in sequential revenue for Q4, with an expected operating income of $365 million, up nearly 5% from the previous quarter [4]. Cost Management and Efficiency - Halliburton's cost-cutting measures, including workforce optimization and operational streamlining, are expected to enhance profitability in Q4. Adjustments in capital spending and selective idling of underperforming equipment are also anticipated to improve operating efficiency [5]. Technological Advancements - The company's focus on digitalization and integrated services, particularly through the Zeus IQ platform, is expected to support long-term growth. This platform enhances well productivity and safety by utilizing real-time reservoir feedback, which is likely to deepen client relationships and ensure stable revenues [6]. Earnings Prediction - Halliburton is projected to report Q4 earnings of 54 cents per share on revenues of $5.4 billion, with expectations of margin expansion in the Drilling and Evaluation segment despite potential revenue declines [8]. Earnings Surprise Potential - The company's earnings model suggests a likely earnings beat, supported by a positive Earnings ESP of +3.78% and a Zacks Rank of 2 (Buy) [9].

Core Viewpoint - Halliburton (HAL) is expected to report a quarterly earnings per share (EPS) of $0.54, reflecting a year-over-year decline of 22.9%, with anticipated revenues of $5.41 billion, a decrease of 3.5% compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 0.3% in the last 30 days, indicating analysts' reassessment of their initial projections [2] - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3] Revenue Projections - Analysts estimate 'Revenue- Drilling and Evaluation' at $2.37 billion, a decline of 2.6% year-over-year [5] - 'Revenue- Completion and Production' is projected to reach $3.08 billion, down 2.9% from the prior year [5] - 'Revenue- Latin America' is expected to be $1.02 billion, showing a year-over-year increase of 7.4% [5] - 'Revenue- Europe/Africa/CIS' is forecasted at $841.88 million, reflecting a growth of 5.9% from the previous year [6] - 'Revenue- North America' is estimated at $2.13 billion, indicating a decrease of 3.8% year-over-year [6] - 'Revenue- Middle East/Asia' is projected to be $1.47 billion, down 10.7% from the prior year [6] Operating Income Estimates - The consensus estimate for 'Operating income- Completion and Production' is $477.74 million, compared to $629.00 million reported in the same quarter last year [7] - 'Operating income- Drilling and Evaluation' is expected to be $365.42 million, down from $401.00 million in the previous year [7] Stock Performance - Halliburton shares have increased by 19.4% over the past month, outperforming the Zacks S&P 500 composite, which rose by 2% [7] - Halliburton holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the overall market in the near term [7]

Core Viewpoint - Investors are focusing on oil-field services companies as the primary beneficiaries of increased Venezuelan oil production [1] Group 1: Industry Insights - The expectation is that early returns from the ramp-up in Venezuelan oil production will favor oil-field services companies [1]

Group 1: Market Signals and Sector Performance - The current AI-driven tech rally is attracting general investors, while "smart money" is shifting towards defensive sectors like Energy and Healthcare, indicating a potential late-cycle economic warning [2][3] - The Energy Select Sector SPDR ETF (XLE) and the Health Care Select Sector SPDR ETF (XLV) have increased by 6.4% and 12.3% respectively since September 2025, outperforming the S&P 500's 4.18% gain [3] - Individual stocks in these sectors have shown significant gains, with Johnson & Johnson (JNJ) up 17% and Halliburton (HAL) up 32%, while the Technology Select Sector SPDR ETF (XLK) has only returned 4.41% [3] Group 2: Economic Indicators - The U.S. GDP appears strong, with a reported increase of 4.3% in Q3 and an estimated 5.3% for Q4, but underlying issues suggest a weakening economy [4] - The unemployment rate has risen to 4.4% from 4% in January 2025, with layoffs surging to 1.2 million last year, marking a 58% increase from 2024 [5] - Inflation remains a concern, with the Consumer Price Index indicating a December inflation rate of 2.7%, up from 2.3% in April, driven by rising tariffs [7]

Group 1 - Halliburton has promoted Casey Maxwell to president of the Western Hemisphere, effective February 1 [1] - Maxwell has been with Halliburton since 2006, starting as a field associate in Odessa, Texas, and has held various roles in sales and leadership [1] - He succeeds Mark Richard, who will transition to a senior advisor role for the chairman, president, and CEO Jeff Miller [1]

Core Viewpoint - Halliburton (HAL) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended December 2025, with the consensus outlook indicating a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show earnings of $0.54 per share, reflecting a year-over-year decrease of 22.9%, while revenues are projected to be $5.41 billion, down 3.6% from the previous year [3]. - A positive movement in stock price may occur if the reported numbers exceed expectations, whereas a miss could lead to a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised 2.13% higher in the last 30 days, indicating a collective reassessment by analysts [4]. - Halliburton's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +4.32%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Halliburton currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Halliburton exceeded the expected earnings of $0.50 per share by delivering $0.58, resulting in a surprise of +16.00% [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Conclusion - Halliburton is viewed as a compelling candidate for an earnings beat, but investors are advised to consider other factors that may influence stock performance beyond earnings results [17].

Core Viewpoint - Halliburton has announced the promotion of Casey Maxwell to president of the Western Hemisphere, effective February 1, 2026, highlighting his extensive operational and leadership experience [1] Group 1: Leadership Changes - Casey Maxwell, previously senior vice president North America Land, will take on the role of president for the Western Hemisphere [1] - The promotion is recognized as a strategic move to leverage Maxwell's deep understanding of customers and operations [1] Group 2: Operational Experience - Maxwell has managed Halliburton's business in key regions, including the Permian Basin and Argentina, showcasing his relevant experience [1]

Group 1 - Halliburton Company (NYSE:HAL) is recognized as one of the largest providers of products and services to the global energy industry [2] - Susquehanna raised Halliburton's price target from $29 to $36, indicating an upside of over 10% from current levels, reflecting better-than-expected US drilling and completions activity [3] - Halliburton's stock has surged by over 15% since the beginning of 2026, driven by market speculation on the potential impact of US actions in Venezuela [4] Group 2 - The company had previously filed an international arbitration case against Venezuela for hundreds of millions in broken contracts, which could lead to compensation if a more US-friendly administration replaces the Maduro regime [5]

Group 1: Industry Overview - According to Raytad Energy, global upstream exploration and development spending is expected to be around $600 billion in 2025, a decrease of 4% year-on-year, with deepwater investments projected to decline by 6% [1] - China's crude oil production has rebounded since 2019 due to a long-term strategy for increasing reserves and production, with a CAGR of 2.2% from 2019 to 2024, while natural gas production has a CAGR of 7.3% during the same period [1] - The "Big Three" oil companies in China have significantly increased capital expenditures from 2020 to 2023 and are expected to maintain high levels in 2024 and 2025, which will support upstream reserve growth and benefit their oil service subsidiaries [1] Group 2: Company Performance - In the first half of 2025, major oil service companies benefited from the ongoing domestic "increase reserves and production" initiative and the gradual release of overseas business performance, leading to improved operational quality despite falling oil prices [2] - CNOOC's oil service subsidiary reported a 23.3% year-on-year increase in net profit attributable to shareholders, while other companies like Haiyou Development and Haiyou Engineering saw net profit changes of +13.1% and -8.2% respectively, with the latter experiencing a 27% increase in gross profit [2] - The annualized ROE for CNOOC's oil service companies in the first half of 2025 showed resilience, with CNOOC at +1.5 percentage points compared to the full year of 2024, indicating a potential improvement in international competitiveness [2] Group 3: Market Performance - As of January 13, 2026, the National Petroleum and Natural Gas Index (399439) rose by 0.81%, with significant increases in stocks such as CNOOC's oil service (+6.03%) and China National Petroleum (+3.57%) [3] - The oil and gas ETF (159697) increased by 1.15%, reflecting a four-day consecutive rise, with the latest price reported at 1.23 yuan and a net subscription of 15 million units [3] - The top ten weighted stocks in the National Petroleum and Natural Gas Index account for 67.11% of the index, including major players like China National Petroleum, Sinopec, and CNOOC [3]