Apple reports earnings on Thursday after the closing bell, and expectations are building for a beat‑and‑raise quarter.
Starbucks is a sell with shrinking profit growth, weak outlook expected.
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The stock market ended mixed on Friday, with the S&P 500 and Nasdaq Composite posting back-to-back losing weeks.
Source: Investing.com
The 30-stock Dow Jones Industrial Average fell 0.5% on the week. The S&P 500 dipped around 0.4%. The tech-heavy Nasdaq declined less than 0.1%, while the small-cap Russell 2000 shed 0.3%.
The blockbuster week ahead is expected to be a busy one filled with several market-moving events, including a key Federal Reserve policy meeting, as well as a flurry of heavyweight tech earnings.
The U.S. central bank is all but certain to keep interest rates unchanged on Wednesday, but Fed Chair Jerome Powell could rock the stock market when he speaks in the post-meeting press conference.
Source: Investing.com
Other noteworthy economic reports due in the week ahead include durable goods orders data on Monday and The Conference Board’s Consumer Confidence Index reading for January, which comes Tuesday. Friday will also see the release of the producer price index report for December.
Meanwhile, the earnings season hits full swing, with four of the massive ‘Magnificent Seven’ tech stocks scheduled to deliver their latest results this week. Microsoft (NASDAQ:MSFT), Tesla (NASDAQ:TSLA), and Meta Platforms (NASDAQ:META) report on Wednesday evening, while (NASDAQ:AAPL) is due late Thursday.
Source: Investing.com
These mega-caps will be joined by other big names like IBM (NYSE:IBM), ASML (NASDAQ:ASML), SanDisk, Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Visa (NYSE:V),Mastercard (NYSE:MA), American Express (NYSE:AXP), SoFi Technologies (NASDAQ:SOFI), Unitedhealth Group (NYSE:UNH), Boeing (NYSE:BA), UPS (NYSE:UPS), Caterpillar (NYSE:CAT), General Motors (NYSE:GM), Verizon (NYSE:VZ), AT&T (NYSE:T), (NASDAQ:SBUX), American Airlines (NASDAQ:AAL), RTX (NYSE:RTX), and Lockheed Martin (NYSE:LMT).
As if that wasn’t enough, Congress faces a Friday deadline to once again fund the government or risk a prolonged shutdown.
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, January 26 – Friday, Jan. 30.
Stock To Buy: Apple
Apple is set to report earnings after Thursday’s close, and the stage is set for a potential upside surprise. Analysts are anticipating a beat-and-raise quarter, with consensus estimates projecting double-digit sales growth driven by resilient iPhone demand and expanding services revenue.
The expected move in the options market is about +/-4% up or down. Profit estimates have been revised upward 21 times in recent weeks, according to an InvestingPro survey, with just three downward revisions, reflecting growing bullishness around Apple’s earnings potential.
Source: InvestingPro
Apple is seen earning an adjusted $2.67 per share, marking an 11.2% increase from the prior year. Meanwhile, revenue is forecast to jump 10.6% year-over-year to $137.5 billion.
The company’s iPhone and Services segments are expected to deliver, with analysts citing double-digit growth and a slew of upcoming product launches, including a foldable iPhone and AI-powered Siri.
The market is primed for a positive surprise, and with analyst targets as high as $350 (implying +41% upside), even a modest beat could spark a reversal.
Source: Investing.com
Year-to-date in 2026, AAPL has faced headwinds, declining approximately 9%, closing at $248.04 on Friday. This pullback comes amid broader tech sector volatility, with concerns over lagging AI strategies compared to competitors like Alphabet.
However, this dip presents a buying opportunity, as the stock now trades in deeply oversold conditions. Overall, technicals point to a “Strong Sell” on daily timeframes, but with support near $247.53 (pivot S1), a breakout above $248.87 resistance could target $260+ if guidance impresses.
Trade Setup:
Entry: $248 (pre-earnings)
Target: $265 (gain ~7%)
Stop-Loss: $240 (risk ~3%)
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Stock to Sell: Starbucks
Starbucks reports earnings on Wednesday before after the open, but unlike Apple, it enters the week with a more fragile backdrop. The coffee giant has been navigating slowing same‑store sales growth in key markets, heightened competition, shifting consumer spending patterns, and cost pressures tied to labor and commodities.
With implied volatility pointing to a +/-6.4% stock move post-earnings, the risk of a miss looms large. Analysts have grown increasingly bearish on SBUX ahead of the print, with 17 of the 19 analysts surveyed by InvestingPro revising EPS estimates downward over the past three months.
Source: InvestingPro
Wall Street anticipates a challenging quarter, with EPS expected to decline 15.9% year-over-year to $0.59, despite a modest 2.5% revenue uptick to $9.62 billion.
Starbucks faces increasing competition from value-driven fast-food players like McDonald’s, Dunkin’ as well as local coffee shops. Furthermore, the company’s growth story in China, once a powerful catalyst, has become a source of concern.
Looking ahead, all signs point to CEO Brian Niccol warning of further near-term weakness due to softening consumer traffic, rising costs, and uncertain turnaround prospects.
Source: Investing.com
Year-to-date in 2026, SBUX has been a standout performer, surging about 16%, with the stock closing at $97.62, but the technicals suggest shares may be overextended ahead of earnings. Pivot support sits at $96.25, with resistance at $97.84; a break below could target $90 amid earnings disappointment.
Trade Setup:
Entry: $98 (pre-earnings)
Target: $90 (gain ~8%)
Stop-Loss: $103 (risk ~5%)
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Disclosure: This is not financial advice. Always conduct your own research.
At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF, and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
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