economy
January 9, 2026
The earnings season that kicks off next week looms large for stock pickers. Here is what's ahead
Investors making individual stock picks, hoping to beat the market this year, are choosing their positions.
TL;DR
- Earnings season kicks off next week, alongside inflation data, which could impact the stock market.
- Investors are rotating out of technology and into cyclical sectors like materials and energy, with value and small-cap stocks outperforming.
- Options markets are pricing in a larger average move for earnings reactions than the S&P 500 implies, suggesting potential volatility and alpha opportunities.
- Some investors are looking for undervalued growth stocks, citing Netflix and Spotify as examples.
- Financial stocks may see varied reactions to earnings, with some analysts optimistic about the sector's outlook.
- The Federal Reserve is likely to hold off on interest rate cuts due to a stable labor market.
- Inflation is expected to continue easing toward the central bank's 2% target.
- Wall Street anticipates continued strengthening in Corporate America, with big tech driving growth.
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