Here’s how to trade in a week of heavy corporate earnings.
What’s Happening: An Expectational Earnings Season
Earnings seasons provide investors with the opportunity to supercharge their performance. These events are often catalysts for double-digit percentage moves – in either direction – as analysts determine whether the quarterly results and the management’s forward-looking guidance justify valuations. Last year, earnings growth was responsible for 84% of returns, according to JPMorgan Asset Management, a jump from just 27% two years prior.
The stakes this week are particularly high, with over 100 companies on the S&P 500 scheduled to report earnings, representing about one-third of the index’s market capitalisation. Together, they have the potential to shift sentiments across US equities and beyond. In this article, we provide a guide on how to navigate this complex landscape and put your ideas into action via our new 24/5 around-the-clock trading feature on the Syfe Brokerage.
| Date | Key Earnings Reports |
| Tue, Jan 27 | Boeing (BA), General Motors (GM), UnitedHealth (UNH), RTX (RTX), NextEra Energy (NEE) |
| Wed, Jan 28 | Microsoft (MSFT), Meta Platforms (META), Tesla (TSLA), IBM, Starbucks (SBUX), ASML, ServiceNow (NOW), Lam Research (LRCX) |
| Thu, Jan 29 | Apple (AAPL), Caterpillar (CAT), Visa (V), Mastercard (MA), Blackstone (BX) |
| Fri, Jan 30 | Exxon Mobil (XOM), Chevron (CVX), American Express (AXP), SoFi (SOFI) |
Why It Matters: Four Themes to Consider
The AI Reality Check: The AI theme is entering a “prove-it” phase characterised by intense scrutiny of massive capital expenditures. As we noted in our 2026 Outlook, AI has moved into a full-scale infrastructure build-out phase, with annual spending reaching approximately 2% of U.S. GDP. Adoption is accelerating, with 40-45% of firms now paying for AI platforms and early adopters reporting 5–15% productivity gains. The recent earnings beat and guidance on AI spending from the dominant chipmaker TSMC shows that near-term momentum for the sector remains strong.
To sustain the sector’s high valuations, however, the ecosystem must eventually generate $1.7 trillion to $2.5 trillion in incremental annual revenue. Investors have been rotating away from companies where growth in operating earnings is under pressure and capital expenditure is mostly funded by debt. The upcoming earnings reports are therefore crucial tests for big tech companies, from Microsoft to Meta, to prove that they can maintain discipline in return on investment.
Concentration Risks: The top 10 US stocks account for roughly 40% of the S&P 500’s market capitalisation. Historically, this level of concentration is associated with higher return dispersion and a much lower tolerance for valuation mistakes. For leaders like Apple, which is expected to report its largest revenue jump in four years, a miss in hardware demand, for example, could weigh on the stock. On the other side of the spectrum is Tesla, which enters this earnings season on the backfoot as vehicle deliveries slow and margins become compressed. There is potential for surprises to the upside, however, should the company’s pivot towards software and autonomous driving show promise.
Broadening Market Leadership: Even though the “Magnificent 7” tech titans are still expected to report 20% year-over-year earnings growth for Q4, this is much lower than the 30% they posted in recent years, according to Goldman Sachs Research, which expects earnings growth rate for these stocks to decelerate further. “If growth fails to meet even that low bar and 2026 estimates move lower as a result, the probability of a sustained broadening will increase,” analysts at the firm wrote in a note on 23rd January. They have highlighted consumer stocks, companies with exposure to nonresidential construction, and small-caps as opportunities in a broadening market.
FactSet notes that 75% of companies that have reported earnings so far delivered a positive EPS surprise. Most of these companies are not tech firms, as pointed out by an analysis by JPMorgan. FactSet projects that five sectors will report double-digit earnings growth in 2026, led by Information Technology, Materials, and Industrials, supporting a bull market that is no longer a winner-take-all game.
Pulse Check on the Economy: Finally, reports from Visa and Mastercard will offer a verdict on the health of middle class consumers who drive the majority of U.S. consumption. While domestic spending remains healthy, investors are closely monitoring a widening divide in household spending amidst rising expenses. Fresh regulatory pressures (such as a proposed 10% cap on credit card interest rates) threaten to squeeze margins for these payment giants and other financial sector names. If these companies signal a downshift in transaction volumes, it would serve as a warning that elevated interest rates may be eroding the traditional economy’s resilience.
How We Can Help: Trading Around the Clock and with Options
Reaping the benefits of stock movements from earnings requires investors to position ahead of time or react promptly – a tall order for Asia-based investors trading US stocks, given the time difference.
This is why Syfe is launching 24/5 Hours Trading this week, in time for our clients to participate in this earnings season.
The first overnight session of the week runs from 8:00 PM Eastern Time on Sunday, and the last session finishes at 4:00 AM ET on Friday, bridging the gap between one day’s post-market session and the next day’s pre-market session. This means Syfe’s clients no longer have to wait for the US market to open to place trades. They can do this during the Asia business day.
We also launched options trading on Syfe Brokerage in December – to help investors amplify potential profit and hedge against volatility.
You can learn about options here and find out more about how it works on the Syfe app.
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