(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 Federal Reserve’s final meeting of the year on Wednesday is the next big catalyst for any year-end market rally, New York Stock Exchange insider Jay Woods tells traders. Woods also has a watch list on a few big-name earnings reports out this week, including from the once-hot AI stock Oracle . Woods is watching for the S & P 500 to reach a key technical level of 6,900 — specifically, an intraday level of 6,920 — to see if the broad-market index can breach a new high on Wednesday. The S & P 500 flirted with record highs last week, and notched its ninth positive session in 10 on Friday. Traders are sure that the Fed will lower its key overnight lending rate another quarter percentage point at its final meeting of the year that wraps up Wednesday. That view grew sharper after recent economic data pointed to some softening in the labor market. Futures contracts suggest an 87% chance of a cut, versus less than 67% a month ago, according to CME’s FedWatch tool. Woods noted that the tone of Fed Chair Jerome Powell’s remarks in his Wednesday press conference, and any indications of the central bank’s monetary policy in 2026, will be critical for investors. “Usually when the odds of that rate cut are this high, you don’t see any change. So we’re expecting that quarter point cut. The key is what happens at that press conference, what happens with the dissensions,” said Woods, chief market strategist at Freedom Capital Markets. “We’re gonna get that cut, but Powell has been eerily silent [about future policy], so let’s see what his tone is and what he sets forth for his last three meetings.” Powell’s terms as Fed chair ends next May, leaving him to chair the Open Market Committee meetings scheduled for next January, March and April. Levels to watch ahead of key earnings Woods is closely watching a few beaten-down stocks that are set to report this week as earnings season winds down. Cloud infrastructure provider Oracle, set to report fiscal second-quarter results on Wednesday, has recently lost steam as worries mount over the company’s nearly half a trillion in artificial intelligence deals booked with tech giants including OpenAI and Meta. The stock has slid in recent weeks after peaking at almost $346 in September, but has held a key long-term support level at $210 per share, Woods said, adding that any upbeat signals from the company’s conference call could send the stock higher. “Oracle jumped 36% last quarter. Remember that September 10th, after earnings, they also announced the deal with OpenAI. That’s where the stock peaked. Since then, the stock has cratered by over 40%,” Woods said about Oracle’s recent performance. “If they can help assuage fears about that debt, the stock could easily run back to $250.” ORCL 1Y mountain Oracle stock performance over the past year. Lululemon , which has plunged more than 52% this year, is also on Woods’ radar ahead of the athletic apparel retailer’s Thursday report. Traders should watch any pullback in Lululemon stock to the $173-$175 area, which is the rising 50-day moving average, Woods said. Any positive news from earnings results this week could push Lululemon to $210, and perhaps to $220-$225 per share, after this year’s sell-off. Lululemon last closed at $190.01 on Friday. “Talk about a stock that’s been under pressure. It’s been down 19%, 18%, and 14% the last three quarters after reporting earnings,” Woods said about Lululemon. “The good news is, the stock has stopped going down. It’s broken its long-term downtrend and is trying to stabilize.” Costco , another market laggard, could get some support from any positive guidance news this week. Shares of the wholesale club retailer, which reports Thursday after the close, are down 13% in the past six months. “If you look at it on a longer-term basis, [it’s] a little troublesome. A nice topping formation, $875, is the key support level to watch in Costco. Let’s see if we can get some guidance that can stabilize the stock and get that trend back on the upside,” Woods said. (This weekly Monday video is exclusively for CNBC PRO subscribers.)
