Weekly Earnings Preview – Farewell June, Hello July

Last week, President Joe Biden announced on Thursday that the White House struck an infrastructure deal with a bipartisan group of senators. The roughly $1 trillion package includes spending of $579 billion on transportation like roads, bridges and rail, along with an investment in the EV infrastructure.

We're almost halfway through 2021, and investors are trying to forecast the second half of the year. Despite the current lull in corporate earnings releases, market participants will get three key readings from major companies on Wednesday and Thursday, including Bed Bath & Beyond BBBY, Micron Technology MU and Walgreen Boots Alliance WBA.

Bed Bath & Beyond

On the morning of June 30^th, the home furnishings retailer will report its fiscal first-quarter results. The company's turnaround efforts and its relatively new status as a meme stock helped it attract investor's attention.

Over the past few years, Bed Bath & Beyond has been struggling to come up with a digital strategy to compete with e-commerce giants. Many saw the business as ultimately doomed but activist investors stepped in and aimed to concentrate on the company's most lucrative business opportunities, and now, there is some optimism on the company's ability to cash in on the reopening economy.

Investors have high hopes for the coming report, with many expecting the retailer to return to profitability and produce impressive revenue growth of around 35%.

Micron Technology

Also on Wednesday but in the afternoon, the chipmaker will deliver its fiscal third-quarter report. The company has taken full advantage of huge rises in demand for memory chips and other products, but it needs to answer investors how long will this demand last given the industry's notoriously cyclical nature.

This report is likely covered with earnings expected to double YoY and revenue climbing at a faster than 35% pace. Many also see growth continuing well into next year.

But the key question is how quickly Micron and its competitors will ramp up production capacity in order to meet this increased demand. In the past, upward cycles in the chip market ended because they boost production too far, creating an oversupply, pushing prices down, and crushing profits.   All eyes will be on Micron's report to see both how things have gone and what the future holds.

Walgreens Boots Alliance

On July 1^st, investors are expecting a mixed picture from the giant drugstore chain. will report on the administering of COVID-19 vaccines, which has been a one-time boon for the industry.

Slightly lower revenue compared to last year seem to be in the cards but profits are expected to jump nearly 65%. However, there is a long-term concern regarding the possibility Amazon AMZN challenging Walgreens' business more directly as no one would want to be put against the giant himself.

Walgreens will have to show it has a strategy for how to build on the momentum from COVID-related impacts. If it fails to deliver, then the relatively stagnant performance of its stock could continue further into 2021 and potentially beyond.

The June jobs report that is due Friday will be pivotal for Wall Street as inflation hawks set out to call for higher interest rates from the Federal Reserve. According to CNBC's Jim Cramer, the report will be pivotal due to the ongoing debate about rising consumer prices in the U.S.

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