VIDEO: These Earnings Are on Our Radar for Next Week

Even though he is shaking off the in the final throes of jet lag, Chris Versace sits down and gets you ready for the earnings reports the Pro Portfolio will be focusing on next week.

We also walk through the latest Visa (V) U.S. Spending Index data, which on its face showed a year-over-year gain in consumer spending for Q2 2026. However, as Chris shares, it’s not that clear cut. We’ll get another read on that as well as Costco’s (COST) June sales report with next week’s June Retail Sales Report.

TRANSCRIPT

Hey folks, Christ Versace here, Friday, July 10th. And I gotta say, it is hard to believe that we are already a third of the way through the month, but then again, that could simply be the remnants of jet lag hitting me. As you know, the real excitement that is simply ahead of us, and yes, I am talking about the second quarter earnings season, which will pick up significantly next week, but even more so in the ensuing weeks.

With next week, we will start as usual with the financials, a usual swarm of companies delivering their earnings, which, as you know, means that we have Morgan Stanley and Bank of America reporting next week. We also have Taiwan Semiconductor, not in the portfolio, but something we will be watching very carefully, and I’ll explain why in a second. We also have Netflix reporting next week.

We will share more detailed thoughts about each of those before they report next week, but I want to say that when it comes to Morgan Stanley, Bank of America, even though we trend back our position in Bank of America earlier this week, still keeping a sizable position size even after that profitable trade, the reality is that the activity that we’ve talked about all quarter long, IPO activity, MA activity, trading volumes, it should be very good for Morgan Stanley and Bank of America.

We also know that the outlook really for IPOs and MA continues to look very vibrant when we chew through the comments, not only from Morgan Stanley, Bank of America, but Goldman Sachs and others as well. We’ll want to hear what their pipeline of activity looks like, more for confirmation than anything else. We continue to see more upside ahead in those names, but we also want to get a better sense of how frenetic that activity for investment banking could be in the back half of the year. With that in mind, we may have to do some price target adjustments.

With Taiwan Semiconductor, if you missed our opening comments this morning, please go read them. in them, we shared that Micron was upsizing its multi-year CapEx plans, adding another $50 billion to that plan, bringing it to 250 billion between now and 2035. we are seeing other chip supply-demand imbalances. And for us, that means that the comments from Taiwan Semiconductor are going to be very important next week. we will cease continued strength in AI and data center, no surprise about that. But what they say about other connected devices, smartphones, PCs is going to be important.

Also, in those morning comments, we shared with you some initial findings that the PC market slumped about 4% year over year in the second quarter. Why? Well, a couple reasons. One, you know, memory component issues, memory pricing issues, and those being passed on. But also, as we suspected several months ago, given the memory supply-demand imbalance, probably some pull forward into the first quarter happened.

Now, that makes us very curious about the guidance that Taiwan’s semiconductor will give, including in market commentary. So that’ll be high on our list for next week. But we’ve also been talking about rising capital spending in the chip space. We’re gonna pay attention to that and see what Micron has to say about that as well. Following Micron, we know that Samsung is increasing their capital spending, so is SK Hynix. Throw Taiwan semiconductor in the mix, and it could lead to another round of price target revisions for Applied Materials.

With all of that said, as a kind of prelude to what we’ll be looking at next week, let’s take a look at some data that came out this morning. And I’m referring to the latest Visa US Spending Momentum Index. That figure for June rose compared to May, representing the fourth consecutive month that the Visa index has been in what they called expansion mode.

Now, to be fair, a decent chunk of that was still due to elevated gas prices in the month of June. But here’s the thing: we also saw a turn up in discretionary spending the first time in the last few months. What was cited? Combination of lower gas prices compared to recent months, World Cup spending as well. Tickets, events, that sort of thing, watch parties and that probably was a nice little boon to restaurant spending and related items.

But Visa also showed that non-discretionary spending was flat compared to May. Now, what’s the takeaway from this? Well, as we get ready for the earnings season, we are going to have some other data points to line up. But looking at the Visa one, it tells us that across the board, whether it was total spending, discretionary spending, or non-discretionary spending, when we compare the data.

For the second quarter of 2026 compared to the second quarter of 2025, all of those categories were up on a year-over-year basis. Now, I know some folks are gonna be like, Chris, two things, man. What about higher gas prices? Well, certainly that was an issue. and second, what about just higher prices overall? Again, another fair point. but as we think about it, the reality is that Visa’s categories, discretionary, non-discretionary, they are pretty wide. And we have to be careful not to read so much into them.

But, higher gas prices, some basic math is going to tell us that somewhere inside these two categories, consumers are cutting back, but they’re also spending a little bit more in other areas. And as we also ponder that, let’s also consider this. Amazon’s Prime Day 2026, which was held between June 23rd and the 26th, is going to be a positive contributor for visa for discretionary spending. Odds are that helped contribute to the upturn that we saw in the month. Now, before we draw any quick conclusions to this, the data, again, you know, not exactly crystal clear, not very granular. We will, however, get more spending about the consumer data.

Next week with the June retail sales report. And based on what we see, it could very well lead us to step into our shares of Costco a little deeper. And by the way, just as we think about Amazon’s Prime Day and the positive impact on discretionary spending, I will say this. The vast majority of people tend to focus with Costco, understandably so, on their adjusted US retail sales numbers for the store locations. They don’t necessarily pay as much attention to what Costco is doing when it comes to digital shopping. But if you look at the numbers on a year-over-year basis, boy boy, they are doing fantastic. And I would argue that they’re probably not getting the credit for that that they should.

It’s another reason to think that next week’s retail sales report, when we get all the various categories, including the one for digital shopping, it’s gonna give us some measuring sticks, by which we can measure Costco’s most recent monthly sales report. In addition to Costco being on our shopping list, I would also say that the shares of Neostellar, former SuRo Capital, Boeing, PACCAR, and one to two others, they are on what we’ll call our shopping radar. And as we close out the week, I will also say that I too see that the shares of Arista Networks, Apple, CIBR, the Cyber ETF, and Welltower, they’re either near or above our respective price targets. My thinking is that the next two weeks and the earnings that they bring should give us more than enough reasons to revisit those price targets and possibly a few others.

And with that, my friends, I will leave it there for now. I do have to get back to this week’s weekly roundup, but please be sure to keep your eyes tuned for any other emails or alerts we might put out. And as you know, if we make any moves with the portfolio, we always want you right there with us. Thanks for watching and have a wonderful, wonderful weekend. We’ll see you back here on Monday.

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At the time of publication, TheStreet Pro Portfolio was long COST, MS, BAC, AAPL, CIBR, WELL, AMAT, NSLR, BA, PCAR, AMZN and MU.