Weekly Equities Outlook: Occidental Petroleum, Johnson and Johnson, Nike

 Occidental Petroleum – oil exposure

Oil prices remain a key focus for markets amid ongoing uncertainty over the outlook for the war in Iran.

Conflicting signals over how close the US and Iran may be to any meaningful de-escalation have kept crude prices elevated, with Brent holding above $100 a barrel. As a result, energy stocks continue to find support.

Occidental Petroleum rose 8% last week to $64 a share as elevated oil prices improved confidence in earnings across upstream producers and prompted investors to rotate into names with greater direct exposure to crude.

Sector peers ExxonMobil and Chevron also moved higher. However, unlike more diversified integrated majors such as Exxon and Chevron, Occidental has greater sensitivity to oil prices due to its heavier exposure to upstream production and its more leveraged balance sheet.

That makes Occidental’s earnings and cash flow more directly tied to sustained strength in crude prices.

At the same time, President Trump’s decision to send an additional 10,000 troops to the Middle East has reinforced market scepticism over how quickly the conflict may be resolved.

As long as geopolitical tensions remain elevated and oil prices stay firm, Occidental Petroleum could continue to outperform.

How to trade OXY?

OXY share price broke out of the symmetrical triangle of the weekly chart, rising above the 200 SMA to a peak of 66.00. The RSI is very overbought, so some consolidation could be on the cards before further gains. Buyers will look to rise towards 68.80, the 2024 high, ahead of 72.75, the 2022 high. Support is seen at 54.00, the 200 SMA and the 2023 low.

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Johnson & Johnson – defensive stock

US stock indices fell again last week, the S&P 500 dropped 2.1%, its fifth straight weekly decline amid a high-risk off-market mood. Traders are looking for more resilient areas of the market amid heightened geopolitical uncertainty, elevated oil prices, and concerns over slowing global growth.

Unlike more cyclical sectors, healthcare tends to be less sensitive to swings in economic activity, making Johnson & Johnson relatively well-positioned during this current period of market stress. The company benefits from a diversified business model across pharmaceuticals and medical technology, which helps support more stable revenues and earnings even when broader risk sentiment deteriorates.

In the current environment — where higher energy prices are raising inflation concerns and pushing treasury yields higher (10-year treasury yield has risen to 4.5%, a 1-year high) — investors are increasingly rotating towards companies with strong balance sheets, predictable cash flows, and defensive earnings profiles.

Johnson & Johnson fits that profile well. As long as macro uncertainty remains elevated and markets stay cautious, the stock could continue to attract defensive inflows and outperform the broader market.

How to trade JNJ?

Johnson & Johnson share price traded higher from the April low, running into resistance at 250, the record high. The price has since eased lower but continues to find support from the 50 SMA. The chart highlights the divergence from the S&P 500 in recent weeks. While the 50 SMA holds, buyers will look to rise back up to 250.

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Nike Q3 earnings preview

Nike will release third-quarter earnings on Tuesday after the market close. The sportswear giant is expected to post EPS of $0.28 per share, down 48% year-on-year, while revenue is forecast to decline 1% to $11.2 billion.

Gross margins are expected to come in at 39.8%, down from 40.6% in Q2.

Guidance will be a key focus, with Q4 EPS expected at $0.21 per share, representing growth of around 53.4%, while revenue is projected to rise 2% to $11.3 billion.

Earnings come amid ongoing restructuring efforts, as CEO Elliot Hill shifts focus back to wholesale and amid intense competition from brands like Hoka and On. The business is also experiencing high tariff-related costs, which are expected to add $1.5 billion in expenses and hit margins.  China, a key market, remains under pressure. North American sales could indicate potential progress in the turnaround.

The share price continues to hover around $53 — levels last seen in 2017 — suggesting the market remains unconvinced about Nike’s turnaround.

The stock is down 18% in 2026 alone and around 56% over the past three years, even as the business shows early signs of stabilisation.

The footwear and sportswear giant continues to face intense competition and a challenging macroeconomic environment, which is weighing on discretionary spending.

How to trade NKE?

On the weekly chart, NKE has trended lower from the 166 November 2021 high, trading below its falling trendline to 51.30 at the end of last week, the April 2025 low and 2017 low. Sellers supported by the RSI below 50 will look to break below here and head towards 50.90, the 2016 low.

Any recovery must rise above 64.50, the 50 SMA and 68.30, the 2026 high. Above here 79.50 comes into play, the 2025 high.

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