Traders looking at two stocks near make-or-break levels
(PRO Views are exclusive to PRO subscribers, giving them insight on the news of the day direct from a real investing pro. See the full discussion above.) The earnings season doesn’t start in earnest until next week, but New York Stock Exchange insider Jay Woods flagged two reports coming Tuesday that may be pivotal for traders. French fry maker Lamb Weston and Nike are set to post their quarterly results before the bell. Both stocks have struggled this year, losing 16% and 8%, respectively. However, Woods thinks the results could drive them past key resistance levels. (Watch full video above.) Lamb Weston has “been beaten down for the last two years,” said Woods, chief market strategist at Freedom Capital Markets. “It’s only had six days above its 200-day moving average since 2024. They were up 16% after earnings last quarter. The stock is hovering just under its 200-day moving average.” Indeed, Lamb Weston shares traded around $55.85 on Monday, just shy of its 200-day moving average of $56.11. That’s the “that’s happening with another iconic brand: Nike,” said Woods. “It’s looking to turn it around. This has been a turnaround story under [CEO] Elliott Hill. It gapped 15% last quarter, rallied, got above the 200-day moving average then faded back to the $70 level,” he added. “If this turnaround story is to be true … then we need to see Nike jump back above the 200-day moving average and continue its newly formed uptrend. If not, there’s a large gap down to about $60.” Nike traded around $69.20 on Monday, just below its 200-day moving average of $69.96. What else Woods is watching this week: Whether the S & P 500 can keep its momentum as Q4 begins Wednesday. Tariff uncertainty, as investors await a Supreme Court ruling on whether many of the levies implemented by the Trump administration are legal. Geopolitical concerns: “Oil stocks are starting to heat up. Is that a sign of things to come?” Whether the Federal Reserve will cut once or twice more. The possibility of a U.S. government shutdown looms large, “but traders aren’t worried about it,” said Woods. (This weekly Monday video is exclusively for CNBC PRO subscribers.)
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