Energy Winners: Schlumberger, Oil Service

(TheStreet) -- Fourth-quarter results from Schlumberger SLB have set a positive tone for the oil service stock sector. Schlumberger shares were up more than 3% in trading early on Friday, and shares of Halliburton HAL, Baker-Hughes BHI and Weatherford International WFT were also all up by at least 1%. The oil service stocks had recently attained, and then given back, 52-week high levels, so the Friday trade could be merely a relief rally back to the previous 52-week high levels -- though many analysts maintain that there is another leg up in the oil-service stocks levered to a cyclical story. Additionally, one of the biggest fears headed into the oil-service stock earnings was that investors would repeat last quarter's trade of selling off the stocks, even after strong earnings. Yet when exactly the big leg up in shares comes remains an open question, and the gains on Friday morning could be described as modest. Schlumberger posted revenue in the fourth quarter above $9 billion, and ahead of the Street consensus of $8.8 billion. Earnings per share of 85 cents was ahead of the Street consensus of 77 cents. With the oil service stocks trading as a basket negative trade last earnings, it's a good sign for the sector to see investors react positively to the bellwether report from Schlumberger. Continue reading the article.