The earnings season is set to kick off next week, but New York Stock Exchange insider Jay Woods has already highlighted two crucial reports scheduled for release on Tuesday that could significantly impact traders. French fry manufacturer Lamb Weston and sportswear giant Nike are both expected to announce their quarterly results before the market opens. This year has been challenging for both companies, with Lamb Weston and Nike experiencing declines of 16% and 8%, respectively. However, Woods believes that the upcoming results could propel these stocks past important resistance levels. (Watch the full video above.)
According to Woods, who serves as the chief market strategist at Freedom Capital Markets, Lamb Weston has faced considerable challenges over the past two years. “The stock has only managed to stay above its 200-day moving average for just six days since 2024,” he noted. Last quarter, the stock surged by 16% following its earnings report, but it is currently hovering just below its 200-day moving average. As of Monday, Lamb Weston shares were trading around $55.85, just shy of the 200-day moving average of $56.11.
Woods also drew parallels with Nike, stating, “Another iconic brand is experiencing a similar situation.” He described Nike’s recent performance as a turnaround story under CEO Elliott Hill. The stock gapped up by 15% last quarter and managed to rise above its 200-day moving average before retreating back to the $70 level. “For this turnaround narrative to hold true, we need to see Nike reclaim its position above the 200-day moving average and maintain its newly established uptrend. If it fails to do so, there’s a significant gap down to around $60,” he cautioned. On Monday, Nike was trading at approximately $69.20, just below its 200-day moving average of $69.96.
Woods is also keeping an eye on several other factors this week. He is particularly interested in whether the S&P 500 can sustain its momentum as the fourth quarter begins on Wednesday. Additionally, there is ongoing tariff uncertainty, with investors awaiting a Supreme Court ruling on the legality of many tariffs imposed during the Trump administration. Geopolitical concerns are also on the radar, as Woods noted, “Oil stocks are starting to heat up. Is that a sign of things to come?”
Furthermore, the market is speculating on whether the Federal Reserve will implement one or two more rate cuts. The looming possibility of a U.S. government shutdown is another concern, but Woods remarked, “Traders aren’t overly worried about it.”
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