GO
Loading...

Analyst Watch: Opportunities in Off-Shore Drillers?

U.S. stock index futures pointed to a lower open on Wall Street on Wednesday, as the Federal Reserve's gloomier assessment of the economy rattled investors and the central bank's measures to support the fragile recovery failed to reassure world markets.

Here's what analysts and others are watching before the bell:

Daniel Dicker, an independent oil trader and contributor to TheStreet.com, says he doesn't see a big rally in natural gas prices for the next two quarters.

"These shale players are dead in the water of environmental pressures and a cool White House," he says. "Look at a chart of the natural gas curve of prices. That is the indicator I'm using to gauge when these drilling stocks on shale plays will begin to make sense."

In the meantime, his energy play of choice is in off-shore drillers.

Dicker says he believes the drilling moratorium will lift in November, "and likely even sooner than that."

He likes:

Transocean

Diamond Offshore

Baker Hughes

See more of what analysts and money managers have to say, and get the latest financial news. Watch Squawk on the Street every weekday morning starting at 9 a.m. ET.

______________________________

Your Daily Dashboard

Pre-Markets Data | Your First Trade for Wednesday | Wednesday Outlook

Analyst Interviews | CNBC Stock Blog | Dow 30 Stocks—In Real Time

______________________________

Disclosure: Disclosure information was not immediately available.

______________________________

Disclaimer

Contact Squawk on the Street

  • Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • “Squawk on the Street” Co-Anchor

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.