Halliburton ( HAL): Halliburton reported second-quarter earnings from continuing operations of $745 million, or 80 cents a share, on revenue of $7.23 billion. The average estimate of analysts polled by Thomson Reuters was for a profit of 75 cents a share on revenue of $6.99 billion. The Houston-based oil services giant said its operating income in North America fell 19% during the quarter, mainly because of "escalating costs associated with guar gum, a blending additive used in our hydraulic fracturing processes." Other factors included "the annual Canadian spring break-up, pricing pressure in hydraulic fracturing operations, and economic costs associated with equipment relocations" but Halliburton expects the guar cost and equipment relocation issues to "subside as we enter 2013." Halliburton shares were 1% in midday trades. Deckers Outdoor ( DECK): Shares of the Goleta, Calif.-based footwear company, whose brands include UGG boots and Teva sandals, were downgraded to underperform at Sterne Agee ahead of their quarterly report later this week. "We would be not be involved in DECK going into the quarter and believe the company will lower FY guidance on next week's earnings call," the firm said. "We believe that there is high probability that Asian and European sales will not improve this year. U.S. sales are likely to be negatively impacted by higher prices and little innovation in the UGG Classic category." Sterne Agee, which set a $38 price target on the stock, said it believes supply is outpacing demand for UGG boots and that pricing could be an issue as well. "From 2004 to 2011 there has always been some pent-up demand for UGG boots come July, as the boots would sell out by late February and DECK would not ship Classics and new boots until July," the firm said. "This year, due to weather, pricing and increased distribution, there has been more than an adequate supply of UGGs and there appears to be no pentup demand. Our initial checks at the Nordstrom Anniversary Sale do not bode well for UGG. Given the high inventory levels at DECK (+95%) and at retailers and the higher prices, we expect to see both cancellations and some promotional activity begin soon on core product." The stock dropped more than 6%. >To contact the writer of this article, click here: Michael Baron.