Breakfast News: Tech Giants Set To Test The Market
January 26, 2026
| Friday's Markets |
|---|
| S&P 500 6,916 (+0.03%) |
| Nasdaq 23,501 (+0.28%) |
| Dow 49,099 (-0.58%) |
| Bitcoin $89,522 (+0.01%) |
Source: Image created by Jester AI.
1. Mag 7 Quartet Head Up Busy Earnings Week
Mag 7 reporting season starts Wednesday with a second-quarter report from Stock Advisor Foundational Stock Microsoft (MSFT 0.50%), as the software giant looks to expand its AI infrastructure by 80% in 2026. Meta (META +0.87%) is due to post a Q4 update the same day, with AI-based "superintelligence" a key part of the roadmap for 2026.
- "At only $1.5 trillion it has a ways to go. But if Elon Musk can deliver on AI, autonomous driving, and humanoid robotics...": Musing on the stock market's candidates to reach $10 trillion in market cap first, TMF chief investment officer Andy Cross said "I'll take a flyer and tap Tesla (TSLA 0.07%)." Q4 results are due Wednesday, following declining global vehicle sales in 2025.
- Record services revenue in 2025: Eyes will be on signs of a revamped smarter Siri, as Apple (AAPL +1.08%) is set to reveal Q1 results Thursday with iPhone momentum also in focus.
2. Gold Surges Past $5,000
Gold reached a new high over $5,100 this morning, as rising NATO tensions increase fear over financial and geopolitical uncertainty. Per Yahoo! Finance, Robin Brooks at the Brookings Institution spoke of "the start of a global debt crisis, with markets increasingly fearful governments will attempt to inflate away out-of-control debt."
- Second week of market losses: The stock market continued its recent weakness as the S&P 500 dipped 0.4% last week, with the Nasdaq just 0.1% down. Futures for both indexes were essentially flat earlier this morning.
- Interest rate decision due: Investors are confident the Federal Reserve will keep interest rates at 3.5% to 3.75% when it announces its decision Wednesday, with the CME FedWatch tool showing a 97.2% probability of no change.
3. Key Results From SA Recs by Team Hidden Gems
- ServiceNow (NOW +1.58%) is set to post a Q4 update Wednesday following a 21.5% rise in subscription revenues in Q3. Watch for further details of the company's agreed $7.75 billion acquisition of cybersecurity start-up Armis.
- Starbucks (SBUX +1.87%) hit a milestone in its turnaround plans in the final quarter of 2025, posting its first global comparable sales growth in seven quarters. Analysts expect a 14% dip in year-over-year earnings in Q1, due Wednesday.
- Visa (V +0.74%) and Mastercard (MA +0.92%) both report Thursday, on Q1 and Q4 respectively. Both companies face threats from President Trump's proposed interest rate cap as inflation remains stubborn, pushing Visa stock down 7% so far in 2026 with Mastercard off 8%.
4. Your Take
Microsoft stock is up just 7.2% over the past year. Meanwhile, the S&P 500 is up 15% over the same period.
Name a company you own and have high conviction in to beat the market over the next three to five years that has lagged the index in the past 12 months, and explain why you retain that faith.
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