Stock Market Outlook: Earnings Season Begins
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Source: CNBC
- Earnings Season Begins: Wall Street prepares for a busy earnings week with major companies like Apple, Microsoft, and Starbucks reporting, which could significantly influence market movements based on performance expectations.
- Weather Boosts Retail: A massive snowstorm in the southern and eastern U.S. is likely to drive sales for Home Depot and Costco as consumers turn to these retailers to prepare for and recover from severe weather conditions.
- Eaton Spin-off Plan: Eaton announced plans to separate its vehicle and e-mobility businesses, which is expected to unlock immediate value for shareholders, leading to a nearly 2% premarket stock increase.
- Nvidia's AI Investment: Nvidia's $2 billion investment in AI infrastructure provider CoreWeave comes amid concerns over rising memory prices, yet analysts predict revenue acceleration into 2027, indicating strong long-term growth potential.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 346.240
Low
280.00
Averages
379.06
High
425.00
Current: 346.240
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Mixed Charge-Off Rates: The average net charge-off rate increased to 3.53% from 3.27% in the previous month but decreased from 4.11% in January 2025, suggesting significant variability among banks, with Bread Holdings skewing the average due to its higher charge-off rate.
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- J.P. Morgan Trust Index Performance: The total delinquency rate for J.P. Morgan's Trust Tracker Index rose by 5 basis points to 1.28%, while net charge-offs improved by 11 basis points to 1.84%, slightly outperforming analyst expectations, demonstrating relative stability in credit quality for this index.
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- Basic Economy Policy: Travelers without a credit card will not earn miles on basic economy fares, although elite members retain this benefit, potentially pushing some customers to apply for credit cards to maintain their mileage accumulation capabilities.
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- Mileage Reward Changes: Customers holding United credit cards will earn 6 miles per dollar spent on tickets, while those without the card will see their earnings drop to 3 miles, significantly enhancing the value proposition for credit card users and encouraging card adoption.
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- Delinquency Rate Increase: The average delinquency rate for the seven banks rose to 2.81% in January, up from 2.75% in December and 2.58% a year ago, indicating a potential increase in credit risk as consumers either paid down debt or lenders tightened credit.
- Mixed Charge-Off Rates: The average net charge-off rate increased to 3.53% from 3.27% in the previous month but decreased from 4.11% in January 2025, suggesting significant variability among banks, with Bread Holdings skewing the average due to its higher charge-off rate.
- Total Loan Decline: Total loans from the seven trusts amounted to $521.4 billion, reflecting a 2.3% decrease from December, indicating a tightening credit market that could impact consumer borrowing capacity and spending.
- J.P. Morgan Trust Index Performance: The total delinquency rate for J.P. Morgan's Trust Tracker Index rose by 5 basis points to 1.28%, while net charge-offs improved by 11 basis points to 1.84%, slightly outperforming analyst expectations, demonstrating relative stability in credit quality for this index.
See More
American Express Stock Rallies 160% Over Five Years
- Strong Investment Performance: American Express stock has surged approximately 160% over the past five years, demonstrating resilience and attractiveness as a long-term investment despite macroeconomic challenges such as inflation, rising interest rates, and geopolitical conflicts.
- Unique Business Model: Unlike Visa and Mastercard, American Express operates as a bank and card issuer, taking on more risk while earning interest and annual fees, which helps mitigate the impact of interest rate fluctuations and enhances financial stability.
- Low Default Risk: By the end of 2025, less than 1% of American Express's consumer, business, and corporate loans were delinquent for over 30 days, indicating that its strategy of targeting higher-income consumers and stable businesses effectively reduces credit risk.
- Future Growth Potential: Analysts expect American Express's EPS to grow at a 14.5% CAGR from 2025 to 2028, and if this trend continues, the stock could rise by 36% to $462 by 2030, highlighting its long-term investment value.
See More
United Airlines Overhauls MileagePlus Program to Reward Credit Card Holders
- Mileage Reward Changes: United Airlines is significantly revamping its MileagePlus program, where credit card holders will earn 6 miles per dollar spent compared to 3 miles for non-cardholders, fundamentally altering the mileage accumulation strategy to incentivize credit card applications.
- Redemption Rate Discounts: Cardholders will enjoy at least a 10% discount on award flights, for instance, an economy ticket that costs 15,000 miles will now only require 13,500 miles, enhancing perceived value for cardholders and driving credit card sign-ups.
- Elite Member Benefits: Cardholders with elite status will receive deeper discounts, such as a long-haul business class seat priced at 200,000 miles being reduced to 170,000 miles, which strengthens loyalty among high-end customers while increasing accessibility to premium seats.
- Basic Economy Policy: Travelers without a credit card will not earn miles on basic economy fares, although elite members retain this benefit, potentially pushing some customers to apply for credit cards to maintain their mileage accumulation capabilities.
See More
United Airlines Overhauls MileagePlus Program to Reward High-Spending Customers
- Program Overhaul Context: United Airlines is significantly revamping its MileagePlus program to reward high-spending customers, effective April 2, marking the largest change in over a decade and reflecting the airline's efforts to differentiate itself in a competitive market.
- Mileage Reward Changes: Customers holding United credit cards will earn 6 miles per dollar spent on tickets, while those without the card will see their earnings drop to 3 miles, significantly enhancing the value proposition for credit card users and encouraging card adoption.
- Redemption Rate Discounts: Cardholders will now redeem miles at a discount of at least 10%, for instance, an economy-class ticket that costs 15,000 miles will now be available for 13,500 miles, incentivizing more customers to apply for the credit card to maximize their travel value.
- Elite Customer Benefits: Cardholders with elite MileagePlus Premier status will receive deeper discounts, with long-haul business class seats dropping from 200,000 miles to 170,000 miles, further enhancing loyalty and satisfaction among high-value customers.
See More
Buffett's Final Berkshire Investment Overview
- Apple Investment: Upon Buffett's departure, Apple emerged as Berkshire's largest investment, valued at over $60 billion and accounting for 19% of the company's equity portfolio, indicating Buffett's confidence in its long-term returns.
- American Express and Coca-Cola: American Express and Coca-Cola hold the second and third largest positions at $52 billion and approximately $30 billion, representing 17% and 10% of Berkshire's portfolio, reflecting Buffett's ongoing trust in these brands.
- Portfolio Stability: Although Berkshire trimmed its Apple stake by 4% in Buffett's final quarter, this was a significant slowdown from the 15% reduction in Q3, demonstrating Buffett's strong confidence in Apple as a key asset moving forward.
- Future Outlook: With Greg Abel taking over, Berkshire is likely to maintain its heavy investment in Apple, especially given the company's strong performance with a 16% year-over-year revenue increase and a 19% rise in earnings per share during the holiday quarter.
See More
Jim Cramer's Trust Portfolio Trading Update
- Capital One Increase: Acquiring 30 shares of Capital One Financial at approximately $208 each raises the weighting in Jim Cramer's Trust to 3.05% from 2.9%, increasing total shares to 580, indicating confidence in the company's growth potential despite risks from proposed interest rate caps.
- Danaher Reduction: Selling 200 shares of Danaher at around $207 each decreases the weighting from 2.1% to 1.05%, realizing a disappointing 9% loss, reflecting concerns over its acquisition of pulse oximetry leader Masimo and a preference for biotech-focused acquisitions.
- Texas Roadhouse Sale: Offloading 200 shares of Texas Roadhouse at about $189 each reduces the weighting to 0.95% from 1.9%, achieving an 8% gain, yet concerns over persistent beef inflation suggest potential earnings misses in upcoming reports.
- Strategic Portfolio Adjustment: By reducing positions in underperforming stocks, Jim Cramer's Trust aims to sidestep potential earnings shortfalls, demonstrating a cautious approach to earnings expectations in the current market climate.
See More
