Next week’s mega-cap results could boost the stock market with more winners. Earnings will begin in earnest next week, with four of the so-called “Magnificent Seven” companies scheduled to report: Metaplatform, Microsoft and Tesla will report on Wednesday, and Apple on Thursday. However, this group is not such a great prospect in early 2026. Most of the tech giants have not only been underperforming this year, but have been under pressure for some time. Metaplatform and Microsoft are down more than 17% and 16% from their 52-week highs, respectively. Apple is down 14%. Tesla is down almost 10% from its high. Ironically, that decline in performance could actually be a godsend, giving the mega-cap company a better chance of meeting expectations, not just for its just-ended quarter’s strong earnings, but also for its important future prospects. The bar is low. “In my experience, just drag your feet in, the bar is low. At least some of the big mega-cap stocks should do well,” said Ken Mahoney, CEO of Mahoney Asset Management. Mr. Mahoney is “biting” on Apple and Microsoft, two stocks he believes have been unfairly punished, but he plans to wait for further declines before making bigger bets. Some agree that Apple could be a hot stock in the coming week. Michael Landsberg, head of investments at Landsberg Bennett Private Wealth, said the strong earnings growth from the iPhone 17 replacement cycle could help the stock rebound after eight straight weeks of declines. Landsberg told CNBC’s “Power Lunch” this week that Apple “seems to be the only Magnificent Seven stock that’s actually growing earnings right now.” “Everyone else is slowing down.” S&P 500 companies are expected to see 8% overall earnings growth in the fourth quarter, but much of that will come from information stocks, which are expected to see 26% overall growth, according to FactSet data. .RUT YTD MOUNTAIN RUSSELL 2000 TO 2026 This could push an already expanding stock market higher. So far this year, it’s small-cap stocks, not large-cap stocks, that are dominating the market. The Russell 2000 index rose more than 7%, setting a new record, while the S&P 500 index was ahead by about 1%. But within the S&P 500, more stocks are outperforming the index than ever before. Macro Charts posted that 65% of the S&P 500 index is outperforming the index, the second highest level in half a century. The equally weighted S&P 500 index, which gives each stock in the index equal importance rather than weighting it by market value, has risen more than 4% this year, led by energy and materials producers. This rotation has already allowed the stock market to achieve new records in 2026. However, if major members of the S&P 500 participate, it will significantly contribute to boosting the overall index. The Magnificent Seven companies alone account for more than a third of the S&P 500, and Apple, the world’s third-largest publicly traded company, alone accounts for about 7%. The first Federal Reserve policy meeting of the new year is scheduled for next week. Investors generally agree that the central bank will keep the benchmark interest rate unchanged at its current level (3.75% from 3.50%) as it assesses the state of the U.S. economy. But traders will continue to analyze Fed Chairman Jerome Powell’s comments after next Wednesday’s meeting to see how policymakers are thinking about policy. Now, the economic calendar is finally starting to get back on track following the fourth-quarter government shutdown. The number of dissenting voices with which the central bank votes on policy will become even more important, especially now that the Trump administration has targeted Fed Governor Lisa Cook and Fed Chair Jerome Powell, raising questions about the Fed’s independence. Treasury Secretary Scott Bessent said this week in Davos, Switzerland, that the next Fed chair to replace Powell in May could be announced as early as next week. The Fed meeting will be held in the midst of this, and any doubts about the central bank are likely to have long-lasting effects on U.S. and global markets. Week Ahead Calendar All Time (ET). Monday, January 26th 8:30am Durable Goods Bulletin (November) 10:30am Dallas Fed Index (January) Earnings: Steel Dynamics, Nucor Tuesday, January 27th 9am FHFA Home Price Index (November) 9am S&P/Case-Shiller Composite 20 HPI (November) 10am Consumer Confidence Index (January) 10am Richmond Fed Index (January) Earnings: Texas Instruments, PPG Industries, Union Pacific, NextEra Energy, Boeing, RTX, Roper Technologies, Kimberly-Clark, United Parcel Service, Synchrony Financial, UnitedHealth Group, Sysco, Northrop Grumman, General Motors Wednesday, January 28, 2:00 p.m. FOMC meeting ends at 2:00 p.m. Federal Funds Yield Target Cap: Raymond James Financial , Fair Isaac , ServiceNow , International Business Machines , Meta Platforms , Las Vegas Sands , Lam Research , CH Robinson Worldwide , Waste Management , United Rentals , Tesla , Microsoft , Amphenol , Starbucks , General Dynamics , Automatic Data Processing , MSCI , Lennox International , Textron , Elevance Health , Danaher , AT&T , Otis Worldwide, Corning, GE Vernova, Progressive Thursday, January 29th 8:30 a.m. Continuing unemployment insurance claims (01/17) 8:30 a.m. New unemployment insurance claims (01/24) 8:30 a.m. Productivity and costs (3rd quarter revision) 8:30 a.m. GDP preliminary figures (4th quarter) 8:30 a.m. Balance of Trade (November) 10 a.m. Durable Orders (November) Revenues: Apple, Hartford Insurance Group, Arthur J. Gallagher, Stryker, Sandisk, ResMed, KLA, Hologic, Weyerhaeuser, Deckers Outdoor, Parker-Hannifin, Lockheed Martin, Sherwin-Williams, Altria Group, International Paper, Dover, Tractor Supply, L3Harris Technologies , Valero Energy , PulteGroup , Caterpillar , Ameriprise Financial , Thermo Fisher Scientific , Honeywell International , Royal Caribbean Group , Norfolk Southern , Marsh & McLennan , Mastercard , Comcast , Blackstone , Visa Friday, January 30th 8:30am Producer Price Index (December) 9:45am Chicago PMI (January) Earnings: Franklin Resources, Charter Communications, American Express, Colgate-Palmolive, Exxon Mobil, Verizon Communications, Regeneron Pharmaceuticals, Chevron, Air Products & Chemicals
