ETF Trends
ETF Trends

Oil services exchange traded funds are trading higher Monday ahead of the start of the industry’s earnings season and on expectations the current quarter is shaping up to be a busy one.

Shares of the Market Vectors Oil Service ETF (NYSEArca: OIH) are up 2.1% while the iShares U.S. Oil Equipment & Services ETF (NYSEArca: IEZ) is up almost 2%. The two ETFs each reside about 2.2% below their 52-week highs.

Sterne Agee analyst Stephen Gengaro says pent-up demand caused by harsh winter conditions in the first quarter should prompt a busy second quarter for the likes of Schlumberger (NYSE: SLB) and Halliburton (NYSE: HAL), the world’s two largest providers of oil services. Gengaro “says difficult conditions across the U.S. negatively impacted efficiency at well sites during Q1. The problems included weather-related logistical difficulties and freezing temperatures that limited the ability to work,” reports Vance Cargiaga for Investor’s Business Daily.

The near-term catalysts for the $1.3 billion OIH and the $522.7 million IEZ come in the form of first-quarter earnings reports. On Thursday, Schlumberger and Baker Hughes (NYSE: BHI) step into the earnings confessional. Those stocks combine for almost 26% of OIH’s weight with 20.9% going to Schlumberger.

Next week, Halliburton, Cameron Interational (NYSE: CAM) and Noble (NYSE: NE), to name a few, deliver results. Those stocks combine for over 19% of OIH’s weight and nearly 17% of IEZ. These earnings reports and others from oil services firms arrive in what is typically a strong month for the group relative to the broader market. April OIH’s third-best month in terms of out-performance of the S&P 500 and OIH has topped the U.S. benchmark index in nearly two-thirds of Aprils dating back to 2000. [Grab Energy ETFs Right Now]

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