The Biden Effect -- October 20, 2022

I remember the stock market falling -- sometimes plummeting -- every time Obama held an unscheduled press conference.

President Biden? Just the opposite, at least for WTI. Yesterday, while announcing yet another release from the SPR, WTI surged, up almost 5% or something like that, probably a bit less.

This morning, pre-market trading, WTI moves up another %, up $1.66 and trading again at $87.21.

Oil cos? Pre-market --

• DVN: up 1.3%
• CVX: up 0.9%
• EOG: up 1.3%

Headline: China easing Covid-19 restrictions.

SLB reports tomorrow. Anticipation:

SLB shares have soared in 2022 amid the boom in energy, up more than 50% and coming nowhere near the general market’s performance. 

Over the last three months, the story visibly remains the same; SLB shares have tacked on more than 30% in value, crushing the general market’s decline of nearly 6%. 

Top-line estimates are also notably strong – the Zacks Consensus Sales Estimate of $7.1 billion suggests Y/Y revenue growth of a double-digit 22%. 

SLB has been on a strong earnings streak as of late, exceeding revenue and earnings estimates in each of its last three quarters. Just in its latest print, Schlumberger penciled in a sizable 25% EPS beat and an 8% revenue beat.

BlackRock: won't invest in oil; loves that 6% market decline. Missed out on a 30% gain by SBL. Needs to be fact-checked. Another open-book test for investors.