Investors are closely watching quarterly reports from Exxon this week to gain new insights into the energy bubble. What will they reveal?
On Thursday it’s widely believed that Exxon will set a new record for quarterly income & revenue by a U.S. company.
But the thing to watch are production numbers which will probably be down, says Pete Najarian. As a result I would sell a rally in the integrated names and take that money and buy the oil services names.
Karen Finerman agrees and stays with that theme. I like Transocean and Pride International , she says. Exxon will likely make a huge capital expenditure on exploration and these are the guys who should benefit.
On a valuation basis I think Exxon stock looks reasonable, adds Guy Adami.