schlumberger looked poised toll roar higher.hanks to a bullish inverse head and shoulders pattern. the formation has played out. >> the stock has made a head and shoulders pattern look at that. that's like a person's head between two shoulders. one of the most negatively inflations in stock. the chart is a lot less positive than when we went over it before. the charge is interpreted by bob marino. they predicted a magnificent run he nailed this thing over three months ago. the group can be due for a near term pull back, we have to take them seriously. even the oils have much more room to run. remember, nobody ever got hurt. taking a profit. much more mad money. game four of the conference finals tonight 37 what do the thunder have to do with your portfolio. it's a company that's instrumental in helping biotechs for drugs. don't miss my take. how could a producer of natural gas and kolb up in 2016? the reason for its rise is just ahead. why don't you stick with kramer. >>> what happens if the golden state warriors lose in the pla

i think haliburton over schlumberger. i think that's something that will recover. >> you're in the same camp with him? >> in the same theme, but i would like to mute a little bit of my index here. in the last month, this did not participate in that rally chris talked about. the aggressive rally across the board in every other energy sub sector i would go osx. it was down 3% month-to-date. 20% up in the last three months against the enp index, which was up 70% for the last seven months, osx. >> perfect segway. >> in the long run, i still think we see much lower oil. we're talking about a short-term of what is called a tactical trade here. oil in the very short term, we could see 50 to 53. that's kind of my target. i'm looking for something that i'm going to buy on a breakout thing, xlp, the etf for the oil and explorations. this sa quick trade. around $36. i think maybe up at $40. that's where you get resistance. you've got a little bit of a pop here. if you start to see oil go what i would say go the last leg. >> national

. >> schlumberger. big valuation. crude oil has to go a lot higher for schlumberger to get to the levels they have talked about. the good news is, pete can speak to this, the ovx is below 40. the last time it was at this level was back in november. it bounced from that. a bounce in the ovx should be bearish for the commodity. but the ovx has been grinding lower for quite some time. pete can talk about whether it holds or not. i think it bounces from here and crude does go down. >> thank you for the setup. i would say, i actually like some of the integrated names. i like the fact if we stay above 45, we're somewhere between 45 and 50, i think these integrated names continue to perform. >> such as? >> such as chevron, ex sxoexxon conoco philips. they are the most apt to be the best beta players. if we break through 50, i want to be backing conoco as opposed to the other two. >> i like those kind of names. i feel like you've got protection on the down side. if it moves. and if it really gets bad, they ultimately will be

in the ultimate winner in schlumberger.y don't have to do with the new baker hughes and halliburton company. tok: there was a narrative baker hughes at the deal went through, or if the deal didn't go through, it would be a disaster. has that narrative been put to buyingh today's news shares, dead, and simplifying the organization? so.ew: yeah, i think from a financial standpoint, baker hughes is in great shape. after you account for the stock buyback in the debt buyback, they will have close to $2.6 billion worth of cash. i think the question it is more of the operational footprint and how the company looks going forward as opposed to the financial wherewithal. they have a great balance sheet and enough cash. andrew, got a nice chart showing have a two shares performed since the end of 2014 when the deal was first announced. they are neck and neck all the way through. when it comes to m&a and the oil services industry, is it the oil services industry? andrew: we have seen smaller bowls on acquisition that is not been too pu

schlumberger up and candor morgan up 3.6%, its highest since the end of april. boost,rton getting a being two and outperform and raising its price target. all of this happening because of oil, so let's look at how oil has been trading. highs, itssion highest since november 4 or so. there is speculation ahead of government data that u.s. crude inventories may have fallen by 3.5 million barrels, so that is pushing up the price of oil. we have seen some interesting moves in the bond market. ramy: the cost of living we were talking about earlier today, climbing the most in three years. the implication is that it is helping the economy. there's speculation the fed might in fact raise interest rates, so we might see rises on the yield rise in tandem. year, we haven't seen that, it fell earlier today but has pulled up against that. yield curve has flattened to we are about a 94 basis point gap. david: let's check on the bloomberg first word news with mark crumpton from our newsroom. ryan house speaker paul says efforts to unite the republican party with donald trump is

i think schlumberger was down a few bucks today. i really like them, but we have a lower basis. john in california, john. >> caller: jim, boo-yah from sacramento, we love you out here. >> 10th and p where i used to live in my car, that was one great intersection. what's going on? >> i had a question, i'm a long time listener, i know you say don't care where stocks are going. i'm holding gilead for a long time. >> i didn't like that conference call. they have to make an acquisition. that company is just as nondesperate as apple. you do have to recognize that that p, the price earnings ratio cannot go up until they do an acquisition. ryan in jersey, ryan? >> boo-yah. should i be worried about espn or disney's revenue from other cases? >> i'm not worried about espn, i was joking this morning about how i watch the summary on my handheld opinion i don't need the description. i watch the summary, my wife says, will you turn off the phone already. i'm not worried about espn, and very excited about the movie schedule, which is extraordinary and long live. don't get it twisted. when it's

the ultimate winner is schlumberger. now they don't have to deal with a new baker hughes and halliburton merger. >> a slew of european bank earnings out this morning. bnp is the only one whose share price is rising today. >> we had a difficult first quarter. the negative interest rate environment and nevertheless we have a strong capital ratio. a low risk profile. i think the market reaction will ease out. >> there may be a lot of factors that affect market sentiment. it's not the kind of volatility that is translating to client activity. it's a paralyzing volatility. >> they were concerned about global growth. there were concerns about the regulatory treatment of some subordinated debt. and the labor uncertainties about monetary policies. francine: it seems at all the fears we had for some of the treaty revenue was looking very ugly. you don't have visibility and were concerned about volatility? >> absolutely. you can just say it was an objectively bad quarter. revenues were down. there were no more that is on litigatio

we also have schlumberger as a very big drag on the entire group.have some names hitting lifetime highs, maybe you own some of these. chlorox had its fourth consecutive earnings beat and announced plans to buy renew life. molson coarse, you see up and about one and a third percent, and then we have food shares distribution giant sysco continuing to benefit from an earnings beat yesterday. we got a second straight record high in a row for sysco. >>> to politics. today's the day, the day indiana decide in record-breaking numbers which person they would like to see on either party. early voting shattering the state's records at this hour. republicans voting in the indiana primary election might give billionaire businessman donald trump a nearly unstoppable leg up in his tumultuous journey towards the party's presidential nomination. on the democratic side after taking heat for saying that she would put coal miners out of business, hillary clinton now doing an about face as she campaigns for votes in coal country today. fox business ' jeff flock at a fo

jon: to me it is obvious, you have the number two and three plan and schedule down to two, schlumberger and this combined company, there is going to be resistance. fromhave we learned this merger, megan? there is another story. are seeing regulators more active and looking at plans to invest in saying that is not going to cut it this time around here it they have a plan in place. a very complex plan. regulators are saying we think it is too heart. -- we think it is too hard. i think it is regulated been quite active. david: who is celebrating today? not have as does fiercely competitive. but who else? are oil companies saying it is going to be cheaper to get services now? robin: it will create and establish and maintain more competition. i'm not sure who is celebrating today. sure they are happy that the company is going to be isependent again, so that the winner here, if there is one. and now the business goes back to where it was. except that we are in a severe downturn that has no end insight. -- no end in sight. david: let's go to puerto rico. it is a big day in puerto rico. they ar

at the same time they come out with a conviction buy list of schlumberger.do that, if oil goes higher people feel better about the market. a lot of cross currents, but i want people to be aware that we are still under the control of oil. and if oil goes higher, as the schlumberger piece would suggest because they're talking about offshore drilling. they have to get in sync at goldman. >> goldman did take slb to conviction buy as jim says 29% upside over the next 12 months. >> a lot. >> along with some other raises today. kbw cuts, actually, afl to market perform, aflac. big lots got cut at deutsche on some of the overtime rules. >> on walmart too. the sleeping giant is awake. a lot of stuff about foot locker. i continue to believe nike had the wrong shoes out there and that that hurt foot locker. and don't forget, please follow these west coast finals between okc and golden state, because the steph curry shoe is, i think, not part of the foot locker stable the way it should. and that hurt foot locker. under armour, i think kevin plank -- you know, everyone d

first symptom, schlumberger. goldman sachs adding them to the buy list. they see 30% upside ahead.erger is best positioned in the new oil order for four reasons, one, exposure to areas like u.s. shale and, two being technological balance, balance sheet flexibility and when oil prices rise, shum sler shea tends to outperform. >> when oil prices start to rise. that's the key. >> and should be an if. >> exactly. second stock here, aflac downgrading to a hold from a buy. the analyst had outlined three catalysts in late january. they all played out. they were the labor department's standards, final rule that was released in a strength in the japanese yen which investors had now incorporated into the outlooks and back in january shares were inexpensive to where they traded historically but are not inexpensive enough to stwik a buy rating. >> you have no know if you want to invest it in. you know the duck. they're based in georgia. a ton of the business, more than half, comes from japan. japanese company. third stock, big lots. deutsche banc says this hot stop run is done. they downgraded

schlumberger, down 3% today, i think it's too expensive. lot of these energy names got ahead of their skis. i think they sort of ratchet to the downside. >> where do you stand on the valuation of oil stocks? >> i agree with you. but, i think the direction of the oil is probably lower. i do think the correlation we saw early in the year which was so, so tight, i do think it's -- >> in terms of oil in the market? >> oil in equities of energy. i think are diverging a little. which is probably a good thing. >> right. turning now to solar city, which is absolutely tanking in the after-hours session, jackie has that story from the nyse. >> melissa, yeah, rough quarter indeed for solar panel maker, reporting worse than expected earnings. revenues they beat, a little on the bright side. second quarter guidance equally disappointing. looking for a loss of $2.70 to $2.80, 135 to 145 million. analysts not happy with those numbers. remember, as far as crude prices go, they've dropped. so have the solar stocks. with crude predicted to stay lower for lon

the next $5 is going to be lower, then i think you look at the xle, etf 40% of that is exxon and schlumberger. i think you can see the break a pretty sharp uptrend that has been in since the lows in february. i know the xle is a low-ball vehicle way to play if you're looking to express a bearish view in crude. >> he can speak to this. ovx topped out at $81 and change back in february. today one of the biggest moves to the upside it's had. i'm wondering if some of the jawboning now, like it marked the bottom on february 11th, i wonder if it's marking the top. i'd rather be a seller than buyer. >> if it is the top, some of those bottle rockets would be better to short where you're protected. >> in the meantime, we have now a news alert on under armor. let's get to seema mody. >> this is in relation to the bankruptcy proceedings. under armour updating its full revenue guidance, lowering estimates to $4.93 billion versus estimates of $5 billion. the company says the sports authority's bankruptcy and liquidation will cost under armour at least $23 million in a write down in the second quarter. sec

we started to buy mobile, and the last time i was on we talked about schlumberger, because we were underweightle more risk and it is about that the oil prices will stay at the price and maybe lower, but nobel is diversified globally and half natural and half oil, and they have gone all over the world, and on the ebida basis, it is selling for 7 time, and it is one of the companies that has cost control, and cap x discipline, and unlike many participa participants in the field, and so we like it here. >> and another one that you are adding is paypal, with an investor day this week, and the stock took a dip on the back of that, and what are the investors not understanding? >> well, paypal, the digital mobile payment space is growing. we know that there is competition, but they are the dominant and the leading field, and they have first-mover advantage because they did it for ebay for years, and we believe that the transactions are going up per user, and 108 million users on the system. and the mobile app one touch is very are very good product. easy to use, and agnostic across all types of payme

and now, looking at schlumberger looking to turn it around, and we have jane wells with that story. >ie chips for $1.99 and frozen pizza at $3.99, and am i at trader joe's? no, it is for people who don't want to spend their whole paycheck on whole foods. no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. oa skin transformation that rivals the leading department store moisturizer. revives skin to fight 7 signs of aging. with olay, you age less, so you can be ageless. olay. ageless. >>> all right, we're back. whole foods is launching a new concept store. the company faces new competition. jane wells is live in one of the stores in the silver lake section of l.a. jane? >> hey, scott. yeah, very first 365 store. this is the big gam to believe shed the nickname whole paycheck and go after low price competitor

last minister, nonetheless, judge, you take a look at baker hughes, take a look at halliburton, schlumberger. schlumber had a good trade. the stock still down over 3.5%. but everybody else in that drilling and e&p type of space is getting hit. >> you've got everybody. as oil sort of turns lower and maybe that sell-off accelerates a little bit. those stocks are under big pressure. for more on what the fires and the news out of saudi arabia mean for the oil market, let's bring in citi's global head of commodities research, ed morris. good to see you again. >> good to be with you. you've been watching all of these stories unfold over the weekend. how do you think it factors into where we're going? >> i think the changes in the leadership of the industry in saudi arabia rr speaking for continuity with the policy that's actually being pursued. i think it means don't look for an agreement to do anything at the opec meeting on june 2nd. i think it means finding every way we can to put more crude into the market. now we'll have to wait and see what their drilling activity will be. i think that's goi

schlumberger, the biggest oil firm in the world, halliburton and baker hughes were hoping to better competer j saying this is the worst financial crisis to hit the industry. the european union had investigation into the tie up. no doubting where the u.s. government stands on this deal. in the wake of this, the u.s. attorney general saying the collapse of the deal was a victory for the u.s. economy and all americans. , let's talk a little bit about the upside to this. there's quite a lot of downside, but there is at least a break fee. baker hughes not entirely walking away empty-handed. elliott: very much a silver lining for baker hughes. they are getting $3.5 million from halliburton. that money will help it cut cost, boost its pressure pumping business, which helps get the hard to get its oil fields. this may make baker hughes more appealing to a potential acquirer. halliburton has to pay this money. about 1/10billion, of halliburton's market share. it has got the cash. presumably it would rather have held onto it. overall, in the balance of things, this is a better use of that money, i su

we are seeing stocks like schlumberger and anadarko pullback.arp selloff in other materials related companies, part of that due to a mammoth lawsuit being filed against the hp over the bursting of a dam in that country that led to the death of 19 people. we see the stock reacting there after we see weakness and commodities. surprise,ities, no are holding up. julie: that is the group that is the standout. some of the movers we are watching and utilities, natural are bucking the trend we have seen in energy and oil prices, up by better than 2%. a cooler out work -- cooler outlook. typically when bond yields go much of a decline but a little bit of a decline in that is the lowest level we have seen in a while. report comingment in weaker than estimated and services coming in better than estimated, so a lot of mixed data there. let's check in on the bloomberg first word news with mark crumpton live in the newsroom. john kasich is ending his bid for the white house. two people with the ohio governor's campaign tell bloomberg news john kasich will sus

. >> we know the firms after schlumberger, robin. what's interesting is he said they let the airlines go through in some cases because the industry's profitability was so bad, but now with oil prices so low, could the same argument have been made for this deal going through instead of being blocked here? >> well, it wouldn't have made as much difference for the competitive landscape today, but if oil prices recover and a few years down the line there is great demand for oil field services, that's when they were concerned it would make a big difference in terms of the cost of drilling. that's why they oppose the merger. >> so what does this now do to the dynamics of that center? does it -- is it based on what the price of oil does or not at this point? >> that's the main factor. while the oil price has drifted up a bit, it's still above a level that would encourage oil companies to start increasing their drilling budgets again. we think that price is around $50. you'll start to see a little bit of improvement in demand for oil service

they signed a deal with schlumberger to cooperate the development of gas reserves.ck since then soared 50%. they think the best from this partnership is yet to come. golar which has been an lng shipper is now transforming itself into an lln mid player. this is an influction point for the stock and perhaps good timing. >> remember, we talked about a jeffries upgrade on the stock from april 22nd. i have correct you. you said the company name is wrong. golar. >> i forgot that. >> golar. finally, today's under the radar name, comm. north carolina based communication infrastructure company, they upgrade from a buy to a neutral. they see an 18% potential return. a $35 target. they say that small health, small self and -- let me try there again. small self for 5-g and fiber optic growth will drive the company. there you go. bottom line, goldman sachs likes comm. >> my mind has gone to swamp w that, we swamp out of "street talk." >> all right. try to clean up the swamp. thank you. >> twitter reportedly blocking u.s. government's intelligence agencies from using a data minin

fight with baker hughes that much in the international markets and will narrow their gap with schlumbergert is about a 20% upside to today's price. >> the f5 networks downgraded. 25% price from february lows. the analyst says a shift in subscription offering should improve visibility longer term and shorter term muted second half recovery and he had winds with uncertainty to the growth flag net later this year. >> up over the last 90 days, not as good as freeport and press gainey, and it -- >> very under the radar. >> it is super -- unless you've had healthcare recently. a massachusetts-based companies. >> ever gotten up of their surveys? >> to to the hospital and in the mail you'll get a survey, digitized record keeping. a lot of people know that anyway. let's talk about the call if we can move it up. there's some bullish calls i did not bring -- >> here we go. that's it. >> key banking. >> thank you, melissa. $38 target on the stock and analyst don heroic said the company can maintain a high digital growth rate and there should mob advanced analytics which would add 10% more revenue per

and schlumberger is not working there because they can't pay. when do the people rise up there?hat's a troubled situation. >> deeply. >> on oil, how much of the runup has been due to some of these temporary supply outages? and then does it catch up to commodities on the downside? >> i don't know, france, there's a strike of all refiners. that would mean there's a back to oil. >> nigeria has issues but iran pumping more and more all the time. >> i think what's happening here is china is back in terms of consumption buying suvs uses a lot, we're driving more, there is a bid under oil. and it's kind of shocking. but i think we have to start accepting that this is the level where oil's going to be. if you go over what some of the airlines are saying, they're very concerned it's going to keep going higher. but a lot of the oil companies need 60/70 in order to be able to reopen and that's not going to happen. but this level's sticky and i think it's worth pointing out because everybody thought oil's going to roll over. i mean, the market's up because of europe, but also because oil. t

how does it affect your big schlumbergers, halliburtons? but they realize that they -- >> layoffs, no bonuses, pay cuts? >> definitely. >> and business entertaining down. >> 100%. >> and is that -- you have national, international businesses s that true across the country or not? >> the country, just like we saw in retail the last few weeks, the consumer is choppy right now. and i don't -- it's not oil necessarily. but restaurants, retail, it is definitely choppy. >> what do you think it is? if it's not energy prices and what's going on in houston and the local economy with the bankruptcy that's you're seeing and no one else is paying attention, to why is the consumer so hesitant? what are you hearing? >> you know what's funny? there is a hotel company out there that was looking at raise something money and they pulled back and said for the first time ever our adr is dropping everywhere. average daily rate. and we don't know why. and it is across all of our different concepts, whether it's a high end hotel or a low end. so there is definite