NYSE strategist flags Fed minutes, PepsiCo and Delta results for investors

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Fed minutes, PepsiCo, Delta watch

Highlights

Federal Reserve leaves benchmark rate at 3.50% to 3.75% at June 16-17 meeting, removes easing bias, and minutes may show increased policymaker disagreement.
PepsiCo trades at $141.90, remaining below its 50-day and 200-day moving averages, with the $148–$150 range highlighted as a key resistance zone.
Delta Air Lines is up 33% year-to-date to $92 per share, perceived as technically overbought with $86 marked as a favorable pullback entry point.

Key releases in a light market week

As reported by CNBC, Woods, chief markets strategist at Freedom Capital Markets, says the Federal Reserve's latest meeting minutes could offer investors a clearer read on internal debate over interest rates. He says the document may show whether there is wider disagreement among policymakers after Fed Chairman Kevin Warsh referred in his first press conference to "family infighting."

The Fed keeps its benchmark rate unchanged at 3.50% to 3.75% at its June 16-17 meeting, but removes an easing bias from its statement. Warsh also abstains from issuing a rate forecast, even as several other Federal Open Market Committee members signal a rate hike later this year.

Trading levels in focus for PepsiCo and Delta

Woods is also watching quarterly earnings from PepsiCo and Delta Air Lines, due Thursday and Friday, respectively. He says PepsiCo has recently broken a near-term downtrend, but still trades in what he describes as "no man's land," with the stock around $141.90 on Monday and below its 50-day and 200-day moving averages of $147.18 and $150.08.

For PepsiCo, he says traders should monitor the $148 to $150 range, describing that zone as a potential level to fade rather than an obvious buying opportunity. On Delta, Woods says the airline's recent rally looks somewhat overextended, with the stock up 33% for the year compared with a 10% gain for the S&P 500.

He says Delta appears overbought on a technical basis and points to $86 as an attractive entry level on a pullback after a longer-term breakout. Delta trades near $92 per share on Monday, a level he suggests may be difficult for investors to chase.

In our earlier analysis of PepsiCo (PEP), we noted the stock was trading under sustained selling pressure, sitting below key moving averages and showing predominantly bearish weekly technicals. We highlighted a likely near-term trading range of roughly $137.25 to $145.80, with $145.80 acting as a major resistance level that would need to be reclaimed for any more durable recovery.

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