This week brings another holiday-shortened trading schedule, with markets closed on Monday in observance of Dr. Martin Luther King, Jr.’s birthday. Monday also marks the inauguration of President Donald Trump, an event that could introduce market volatility as the new administration is expected to begin unveiling details on key policies, including tariffs and immigration changes, along with their anticipated timelines.
In addition, the markets will closely monitor developments surrounding the TikTok ban, which is set to go into effect on Sunday. This could have implications for competitors who have recently seen a boost amid speculation over the ban’s likelihood and potential fallout.
Earnings season continues, with the transportation sector taking the spotlight this week, alongside a handful of mega-cap companies. On the macroeconomic front, a key event to watch will be the Bank of Japan’s rate decision, which could influence global markets.
Monday
Markets closed
Tuesday
Earnings: SCHW NFLX
Wednesday
Earnings: JNJ PG
Thursday
Earnings: TXN
Friday
Consumer sentiment
Earnings: AXP VZ
Tracking This Week
Dell Technologies (NYSE:DELL) has been fading after a brief early-year resurgence but appears to have found technical support so it could be a good time to accumulate. A sustained rally may still require a catalyst, such as confirmation that the long-awaited PC refresh cycle is underway or continued momentum from NVIDIA pushing toward all-time highs.
Meta Platforms (NASDAQ:META) stands to benefit significantly from a TikTok ban. Even if a 90-day reprieve is granted, the uncertainty could push creators and advertisers—plus the $20 billion in ad spend—toward Meta’s platforms. While the reprieve may cause short-term volatility, the shift in advertising dollars and content creators should drive long-term gains for the company.
Microsoft (NASDAQ:MSFT) has lagged behind other Magnificent 7 names in terms of bullish sentiment. However, investors may realize its strong positioning in the AI race, fueled by its strategic investments in OpenAI. That generative AI investment has the potential to enhance Microsoft’s already diverse and robust portfolio across cloud, productivity, and gaming, making the stock appear undervalued in comparison to peers.
Micron Technology (NASDAQ:MU) has been grinding higher after taking a hit in December due to weak guidance and NVIDIA’s struggles. With sentiment improving for NVIDIA, Micron could follow, as its high-bandwidth memory powers NVIDIA’s AI offerings. The delayed PC refresh cycle also seems to be ramping, potentially adding another tailwind for the stock.
Workday (NASDAQ:WDAY) has pulled back to levels seen prior to its inclusion in the S&P 500 and is currently resting on key technical support zones. The SaaS provider remains a dominant player, with its solutions entrenched in the back offices of 60% of S&P 500 companies. While growth projections appear modest, this could reflect conservative guidance from CEO Carl Eschenbach, who has been at the helm as sole leader for less than a year. The stock warrants attention at these levels.
