This week’s earnings season intensifies, with NYSE Insider Jay Woods identifying three companies whose results could prove pivotal for the market. Approximately 80 S&P 500 constituents are slated to report, including Alphabet and Tesla. The releases assume added significance as the S&P 500 recently closed beneath its 50‑day moving average for the second time since April, having failed to establish a new record high since early June. IBM will publish its earnings on Wednesday afternoon. Following a historic single‑day decline of 25% on Tuesday after missing revenue and earnings expectations, Woods anticipates a potential relief rally and highlights a possible trading opportunity if the stock rebounds. ServiceNow is scheduled to release its earnings on the same day; despite a year‑to‑date decrease of roughly 30%, the stock may rally if results exceed expectations, currently hovering near its 50‑day moving average of $103 and below its 200‑day average of $128.40. “Historical rallies often occur around the 200‑day moving average; ServiceNow experienced one in June and could potentially climb to $125 if the news is favorable,” said Woods, chief market strategist at Freedom Capital Markets. “The key question is whether this rally is a short‑term relief or the start of a broader trend?” Intel, another AI‑focused company, will report earnings on Thursday. Having fallen more than 30% from its recent peak in late June, Woods expects a rebound if earnings surpass forecasts, noting that a rally could bring the stock toward its 50‑day moving average of $117.
Source link
