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- 📱 Apple Surges Pre-Earnings
📱 Apple Surges Pre-Earnings
PLUS: Gold climbs to all-time high
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Market Performance
S&P 500: 6,950.23 ⬆️ 0.50%
Nasdaq: 23,601.36 ⬆️ 0.43%
Dow Jones: 49,412.40 ⬆️ 0.64%
Apple (AAPL) shares climbed nearly 3% on Monday, closing at $255.41, as investors positioned themselves ahead of a packed earnings week.
The rally came despite Jefferies maintaining a “Neutral” rating while trimming its price target to $276.47 from $283.36.
JPMorgan took a more bullish stance, raising its price target to $315 from $305 while keeping its “Overweight” rating.
The firm expects iPhone revenues to exceed consensus, with a projected 16% growth rate—potentially Apple's strongest iPhone revenue growth since September 2021.
JPMorgan also anticipates robust Services growth of around 14%, driven by multiple revenue streams beyond the App Store.
As one of the market's largest companies, Apple's guidance will recalibrate expectations not just for the company, but for consumer spending and Big Tech's profit outlook broadly.
Investors will scrutinize iPhone demand trends, Services growth, the impact of rising memory costs on gross margins, and the pace of hardware upgrade cycles.
Apple stock has a Ziggma score of 79 but trails peers in terms of growth and valuation.
Our Takeaway
Apple’s recent underperformance versus the S&P 500 has created an attractive entry point, but the margin for error is thin.
Any cautious forecast or softer margins could disappoint in a market heavily dependent on megacap strength.
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Market Overview 📈
The S&P 500 closed with near flat gains on Monday as traders navigated rising political tensions and positioned for a critical week of earnings and the Federal Reserve's first policy decision of 2026.
Tech and communications stocks led the advance, with Apple, Meta Platforms, and Microsoft each climbing 1-3% ahead of their reports later this week.
President Trump threatened a 100% tariff on Canadian goods if Ottawa pursues a free trade deal with China, though Canadian Prime Minister Mark Carney insisted no such negotiations are underway.
Meanwhile, growing outrage over federal immigration agents fatally shooting a second U.S. citizen in Minnesota this month sparked concerns about a potential government shutdown, as Democratic senators threatened to block a $1.2 trillion funding package.
Gold prices surged to a new all-time high above $5,100 per ounce as investors sought safety amid escalating political and fiscal uncertainty.
The Fed is widely expected to hold rates steady on Wednesday, with markets focused on clues about future cuts—traders currently price in two quarter-point reductions by year-end 2026.
More than 90 S&P 500 companies report this week, with 76% of firms having already beaten expectations this season.
However, some stocks have declined despite earnings beats, reflecting cautious investor sentiment and conservative forward guidance amid tariff uncertainties and geopolitical risks.
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Stock Moves Deciphered 📈
⬆️ Arista Networks (ANET)
Arista Networks surged 5.4% after Piper Sandler upgraded the stock to “Overweight”, citing strong growth prospects in the enterprise and AI networking sectors.
The firm raised its price target to $159, reflecting optimism about Arista's position in the expanding AI market and a potential "Year of Refresh" for enterprise investments.
🤖 Intel (INTC)
Intel shares fell by about 5.7% following the company's fourth-quarter earnings report. Despite beating estimates, the stock was dragged down by weak forward guidance.
Management warned of significant internal supply constraints, indicating that the company lacks the manufacturing capacity to meet current demand, which is expected to depress future sales.
☁️ Akamai Technologies (AKAM)
Akamai Technologies saw its stock rise by approximately 3.8% amid positive sentiment over its strategic shift to cloud security and edge AI services.
A new security partnership with Deutsche Telekom and a favorable analyst rating with a $108.20 price target contributed to the positive momentum, signaling investor confidence in its growth trajectory.
Headlines You Can't Miss 👀
📊 CoreWeave shares popped 10% after Nvidia invested $2 billion in the AI infrastructure provider at $87.20 per share.
🏆 Michael Burry disclosed he's been buying GameStop shares, expecting to buy near tangible book value, with Ryan Cohen deploying capital.
🥇 Allied Gold climbed 3% after agreeing to be acquired by Zijin Gold for C$5.5 billion in cash, with the deal expected to close by late April.
⚙️ Durable goods orders jumped 5.3% in November, exceeding the 4.5% estimate and reversing October's 2.1% decline.
🌐 Evercore ISI upgraded Cisco to Outperform with a $100 price target, citing AI momentum and multi-year growth potential.
💊 Deutsche Bank analysis showed oral Wegovy launch not cannibalizing injectable obesity treatment demand, boosting Novo Nordisk sentiment.
⚠️ The Treasury Department canceled all contracts with Booz Allen Hamilton after employees leaked tax records of Trump, Bezos, and Musk.
Trending Stocks 📊
⛏️ USA Rare Earth (USAR)
USA Rare Earth rallied over 7% after the Commerce Department announced an equity stake through 16.1 million shares and 17.6 million warrants, alongside $1.3 billion in loans and $277 million in federal funding to support domestic critical minerals production.
🛒 Target (TGT)
Target stock declined approximately 3.1% amid concerns over financial performance. The company was recently dropped from Fortune's "Most Admired Companies" list after its third consecutive year of declining revenue, with falling in-store sales pressuring the stock.
🍲 Darden Restaurants (DRI)
Darden Restaurants fell about 3.8% due to insider stock sales and a price target downgrade from Truist Financial. Severe winter storms across the restaurant sector impacted sales, contributing to negative performance across DRI and its peers.
What’s Next?
Key market and macro news 👇
🏦 The FOMC, the Federal Reserve's monetary policy-setting committee, is scheduled to meet on January 27-28, 2026. Any statements on interest rates, inflation, and economic growth will heavily influence the market.
🏡 The release of the S&P/Case-Shiller Home Price Index for November 2025 provides insight into the health of the housing market, a key sector of the U.S. economy.
📊 The release of the Consumer Confidence report for January 2026 measures consumer sentiment about the economy and their spending plans, which can signal future economic trends.
🧑✈️ The Bureau of Labor Statistics will release data on state employment and unemployment for December 2025. This report will provide a more detailed look at the labor market nationwide.
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