Oil Majors Eye Blowout Earnings; Utilities Surge on AI

ExxonMobil ($XOM) and Chevron ($CVX) are set to report earnings Friday with Wall Street expecting massive profit increases amid elevated gasoline prices. Analysts expect $XOM earnings per share to more than double to $3.56 for the second quarter. $CVX has returned 133.2% over the past five years, though investors now face mixed valuation signals as discounted cash flow models suggest upside while earnings-based multiples point to a richer price. The political pressure is mounting as high gasoline prices stress consumers ahead of upcoming midterm elections, with the White House holding numerous meetings on the issue according to media reports.

Valero Energy ($VLO) delivered record second-quarter results with profit jumping 400% driven by rising Venezuelan crude supply and tight global markets, the San Antonio-based refiner announced. The company benefited from strong refining margins and renewable fuel gains during the quarter. Phillips 66 ($PSX) closed at $210.6, advancing 1.83% as the refining sector continued to attract investor interest ahead of earnings reports. $VLO management highlighted broad-based strength across both traditional refining operations and the company's renewable diesel business.

SLB ($SLB) delivered second-quarter results that exceeded Wall Street expectations despite year-on-year revenue declines, prompting a significant positive market reaction. CEO Olivier Le Peuch credited higher offshore activity in Latin America, Europe, Africa, and Asia, along with a rebound in North American operations focused on production and recovery solutions. Core Laboratories ($CLB) reported second-quarter revenue of $124.6 million, up more than 2% sequentially but down 4% year-over-year, as stronger completion-product sales partly offset disruptions from conflicts in the Middle East and Russia-Ukraine region.

First Solar ($FSLR) reported record second-quarter and first-half sales volumes for 2026, with quarterly net sales exceeding $1 billion and gross margin expanding to 57%. The company continued prioritizing domestic manufacturing and disciplined contracting amid evolving U.S. trade policy, though management flagged uncertainty around Section 232 tariff implementation and rising input costs. $FSLR has reached a 100 GW production milestone while maintaining focus on its thin-film technology platform and U.S.-based supply chain.

Southern Company ($SO) reported second-quarter results highlighted by a 55% surge in data center demand after landing a major contract with OpenAI. The utility is positioned to benefit from the accelerating electricity needs of artificial intelligence infrastructure as hyperscale cloud providers expand data center capacity across its service territory. Duke Energy ($DUK) closed at $126.27, declining 2.18% despite similarly strong grid infrastructure investment trends. Alliant Energy ($LNT) missed second-quarter earnings and revenue estimates with surprises of -1.52% and -3.10% respectively for the quarter ended June 2026.