KeyBanc cautious on security budgets in 2026, downgrades CrowdStrike

Earnings season continues to gather momentum as we head into mid-January. Below we highlight companies expected to report earnings the next trading day so you can prepare for the market action. Leading Tuesday’s lineup are financial giants JP Morgan Chase and Bank of New York Mellon, alongside transportation heavyweight Delta Air Lines, with Phoenix Education Partners and several others also stepping up to the earnings plate.

Earnings Before the Open:

• JP Morgan Chase (JPM) - EPS est: $4.91, Revenue est: $46.17B

• Bank of NY Mellon (BK) - EPS est: $1.91, Revenue est: $5.13B

• Delta Air Lines (DAL) - EPS est: $1.53, Revenue est: $14.72B

• Concentrix (CNXC) - EPS est: $2.91, Revenue est: $2.54B

Earnings After the Close:

• Phoenix Education Partners Inc (PXED) - EPS est: Not available, Revenue est: Not available

• Industrea Acquisition A (BBCP) - EPS est: $0.0888, Revenue est: $102.84M

• Park Electrochemical Corp (PKE) - EPS est: Not available, Revenue est: Not available

Stay informed throughout earnings season by checking back daily for updates and real-time results at Investing.com’s Earnings Calendar and Investing.com’s Headlines. Do you want to trade the earnings of the biggest companies like a pro? Then get InvestingPro now and access over 1000 metrics that will give you a significant advantage in the shark tank that is Wall Street. Click here.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Airbus has expressed concerns about the availability of jet engines from Pratt & Whitney, stating that it has not yet reached an agreement with the U.S. manufacturer regarding supply volumes needed "for the foreseeable future."

Outgoing commercial CEO Christian Scherer told reporters on Monday that engines for the A320neo family continued to arrive "very, very late" in 2025.

"We see that this trend continues in 2026 and in particular with Pratt & Whitney, with whom we are still in discussions," Scherer said. "It is an issue that we need to resolve."

Pratt & Whitney parent RTX, one of two engine suppliers for Airbus’s best-selling series, had no immediate comment on the matter.

Scherer also revealed that Airbus would have delivered approximately 820 planes in 2025 if not for a recent fuselage panel problem that affected production.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Barclays said software stocks could finally catch a break in 2026, given a supportive setup after a year of underperformance driven by valuation pressure and skepticism around AI.

Macro conditions and IT spending remain stable, valuations are low and the sector is out of favor.

Software lagged the broader market in 2025, with the IGV ETF up about 6% versus a 16% gain for the S&P 500.

The underperformance was not due to weak fundamentals, as reported results were broadly solid, but rather persistent debates around AI.

Investors have worried about seat compression and new entrants in applications, and about potential overbuilding and financing risk tied to heavy capital spending among AI infrastructure providers.

Barclays expects both concerns to ease in 2026.

For application software, Barclays sees growth benefiting from easier comparisons as companies move past post-pandemic headwinds, alongside more meaningful contributions from AI agents as adoption improves.

Issues facing new AI entrants, including distribution, compliance and integration into corporate workflows, should also become clearer, helping established vendors regain favor.

For infrastructure and compute providers, Barclays expects large remaining performance obligation balances built up in 2025 to convert into revenue next year, making AI demand more tangible.

Continued large funding rounds for model developers should also reduce concerns around counterparty risk.

Higher free cash flow and pressure from activist investors are supporting a more active M&A environment, with large platforms using cash to bolster AI capabilities and smaller companies becoming potential takeover targets.

Barclays named Salesforce Inc (NYSE:CRM), Oracle Corporation (NYSE:ORCL) and DigitalOcean Holdings Inc (NYSE:DOCN) as preferred picks for 2026.

It downgraded Snowflake to Equal Weight after a strong 2025 rally on higher valuation and tougher competition for workloads.

GitLab was cut to Underweight on expectations of slowing growth and execution risk, while DoubleVerify was downgraded to Equal Weight due to challenging comparisons.

Analyst upgraded Descartes Systems to Overweight, saying it sees an inflection point as growth re-accelerates at a time when the stock trades near multi-year valuation lows.

Investing.com-- The S&P 500 moved off session lows Monday, but remained under pressure as President Trump administration’s latest attack on Federal Reserve’s Chairman Jerome Powell stoked fresh concerns about central bank independence, souring investor sentiment.     

At 12:50 ET (17:50 GMT), the Dow Jones Industrial Average fell 55 points, or 0.1%, the S&P 500 index rose 0.1%, and the NASDAQ Composite added 0.3%.

Powell under more political pressure; Former Fed chair Yellen warns market should be concerned

Powell, in a statement late Sunday, confirmed that federal prosecutors have opened a criminal investigation related to his Senate Banking Committee testimony on the renovation of Fed office buildings, but indicated that the threats were likely motivated by the Trump administration’s repeated calls for the central bank to lower interest rates sharply.

"This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings... This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation," Powell said.

His comments are the most direct yet in addressing heightened political pressure on the central bank to slash rates. Trump had called for at least 2% of rate cuts in the past year, while the Fed delivered a total 0.75% of cuts in 2025, citing caution over sticky inflation and an uncertain economic outlook from Trump’s trade policies. 

The Fed-White House feud also comes with Powell’s term set to expire in May. Trump said last week he was close to nominating Powell’s successor. 

"Powell has explicitly characterised this as an attack on the Fed’s independence from the Trump administration," said analysts at ING, in a note. "Markets’ initial reaction agreed with that view. The combined drop in the dollar, equities and Treasuries was a reminiscence of the ’sell America’ days of last spring."

Former Fed chair Janet Yellen warned the investigation into the Powell was “extremely chilling” as it signals a deliberate attempt to oust chairman Powell, adding to concerns that the Trump administration seeks to exert influence over the Fed rather than allows the Fed to operate independently.  

December CPI inflation data looms 

A busy week of economic data is headlined by the release Tuesday of the consumer price index for December, which is expected to show headline consumer inflation remaining steady, while core CPI is expected to have risen slightly. 

This CPI print comes after inflation data for November came in softer than expected, although analysts said this was potentially due to disruptions caused by a long-running government shutdown in late-2025. 

Markets are broadly pricing in no changes to the Fed’s rates in January, after the central bank flagged a higher bar for lowering interest rates this year. 

Beyond the CPI reading, the producer price index, retail sales data and a host of Federal Reserve speakers are also on tap this week. 

Banks to kick off Q4 earnings season

In the corporate sector, the fourth-quarter earnings season is set to begin in earnest this week, with prints from several major Wall Street banks on tap.

JPMorgan Chase (NYSE:JPM) and Bank of New York Mellon (NYSE:BK) are set to report on Tuesday, while Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) will report on Wednesday.

Prints from Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS) and asset manager BlackRock (NYSE:BLK) are due later in the week. 

The earnings are expected to provide more insight into whether U.S. corporates were able to weather economic disruptions from a government shutdown and geopolitical strife in the final quarter of 2025.

Ahead of the earnings, the financial sector was under pressure after President Donald Trump called for a one-year cap on credit card interest rates, reigniting concerns over regulatory risk for the sector.

Trump said in a social media post on Saturday that he wants to impose a 10% ceiling on credit card annual percentage rates starting January 20, arguing that Americans are being “ripped off” by rates in the 20%–30% range.

Gold surges to new highs; oil consolidates

Elsewhere, gold prices surged to new highs as investors sought out this safe-haven asset amid concerns over escalating unrest in Iran, mounting political pressure on the U.S. Federal Reserve and weaker U.S. jobs data.

The U.S. dollar came under pressure as well, burnishing gold’s appeal by making the yellow metal cheaper for holders of other currencies.

Additionally, oil prices have consolidated after recent gains as continued civil unrest in Iran, a key producer in the Middle East, threatened to disrupt global supplies.

Both benchmark contracts gained over 3% last week as widespread anti-government protests intensified, resulting in the biggest demonstrations against the country’s clerical establishment since 2022.

This has heightened concerns of a broader regional confrontation in this key energy-producing region.

Peter Nurse, Ambar Warrick contributed to this article