It was a mixed day on Wall Street, with technology lifting the Nasdaq Composite and the S&P 500 as Apple (AAPL), Meta Platforms (META), Microsoft (MSFT) and Tesla (TSLA) prepare to report earnings next week. Financials dragged on the Dow Jones Industrial Average after President Donald Trump sued JPMorgan Chase and CEO Jamie Dimon.
"The trend is still positive," writes Louis Navellier of Navellier & Associates, "with the leading risks including geopolitical uncertainties, uncertain timing on when the Supreme Court will rule on tariffs, and the upward pressure on interest rates that is being driven by Japan."
As Navellier concludes, "The focus next week will be on earnings, which should be positive for investor sentiment." Four of the Magnificent 7 stocks are scheduled to report results and provide guidance next week.
Alphabet (GOOGL) will report on February 4, Amazon.com (AMZN) on February 5. Nvidia (NVDA) and CEO Jensen Huang, the primary drivers of the AI boom, will report fiscal 2026 fourth-quarter results on February 25.
Investors, traders and speculators will also digest the next Fed meeting, which begins this Tuesday, ends on Wednesday and is the highlight of next week's economic calendar. CME FedWatch shows a 97.2% probability that the central bank maintains a target range of 3.50% to 3.75% for the federal funds rate.
At the closing bell, the Nasdaq Composite was up 0.3% to 23,501, though the tech-heavy index was down 14 points, or 0.06%, this week. The S&P 500 was up 0.03% to 6,915, but fell 0.4% over the five days. The Dow Jones Industrial Average was down 0.6% to 49,098, sliding into a weekly loss of 0.5%.
BAH rises above DOGE
Booz Allen Hamilton (BAH) is off to a strong start so far in 2026, rising 13.5% even before it announced results before the opening bell. The industrial stock added 6.8%, rallying as much as 13.9%, after management reported expectations-beating earnings per share and raised its full-year EPS forecast.
Fiscal 2026 third-quarter EPS of $1.77 beat Wall Street's estimate of $1.27, though revenue of $2.6 billion came up short of a $2.7 billion consensus.
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Headquartered near Washington, D.C., in McLean, Virginia, Booz Allen makes about 98% of its money from contracts to provide IT and related services to the federal government, mostly its national security departments and agencies.
Revenue was down 10.2% year over year, though management says the decline would've been only 6% but for the longest government shutdown in U.S. history.
Additionally, Booz Allen announced a restructuring in late 2025 in response to federal budget cuts proposed by the Department of Government Efficiency (DOGE), which was led by Tesla CEO Elon Musk.
BAH stock was down 33% last year, while the S&P 500 was up 17.9%. Price action so far this year represents "rallying from the floor,” according to Cantor Fitzgerald analyst Colin Canfield, who has a Buy rating and a $160 12-month target price on BAH stock on the prospect of rising defense spending.
The president takes on financial stocks
In addition to the Mag 7, American Express (AXP) is on the earnings calendar next week. AXP was down 1.7% on Friday. Goldman Sachs (GS) shed 3.7% and was the worst performer among the 30 Dow Jones stocks.
JPMorgan, named by the president along with its CEO in a lawsuit threatened in a January 17 Truth Social post and filed this week in a Florida state court alleging the bank closed Trump and Trump-related accounts for political reasons, also dragged on price-weighted Dow with a loss of 2.0%.
"Plaintiffs are confident that JPMC's unilateral decision came about as a result of political and social motivations, and JPMC's unsubstantiated, 'woke' beliefs that it needed to distance itself from President Trump and his conservative political views," the lawsuit alleges.
"He de-banked me," Trump said on Wednesday in Switzerland when asked about Dimon. "He shouldn't be debanking," Trump said. "It's so wrong."
JPMorgan responded: "Our company does not close accounts for political or religious reasons. We do close accounts because they create legal or regulatory risk for the company. We regret having to do so, but often rules and regulatory expectations lead us to do so."
Dimon's bank also noted that it asked the Trump administration and the Biden administration to change rules and regulations that essentially forced its hand, adding that JPMorgan supports efforts to prevent the "weaponization" of banking.
"While we regret President Trump has sued us," JPMorgan said, "we believe the suit has no merit. We respect the President's right to sue us and our right to defend ourselves – that's what courts are for."
