This has been one of the best earnings seasons I can remember, says Gabelli Funds' John Belton

Watch on YouTube ↗  |  August 07, 2026 at 11:57  |  4:07  |  CNBC
Speakers
John Bolton — Former US National Security Advisor / Ambassador

Summary

John Belton of Gabelli Funds discusses an exceptionally strong earnings season, with S&P 500 earnings growth in the high 20s and a strengthening US economy. He highlights mega-cap tech as a standout, as management teams demonstrated AI capex is generating real returns and accelerating businesses. Microsoft received special praise for showing AI monetization in its application software, clearing the path for further gains.

  • S&P 500 earnings growth is exceptionally strong, with fundamentals and macro consumption/investment robust.
  • Higher rates are a headwind, but there are signs rates are going higher for good economic reasons.
  • Mega-cap tech earnings showed AI capex is paying off quickly, driving business acceleration not yet priced in.
  • Amazon reported capex payback under three years; another mega-cap indicated AI capex payback under one year.
  • Microsoft demonstrated AI monetization in application software, clearing overhang and supporting a higher stock.
  • Application software is entering a stock-picking phase after infrastructure outperformed, with distinct winners and losers.
Ideas
John Bolton Former US National Security Advisor / Ambassador 0:34
Earnings season exceptionally strong, stocks supported.
This has been one of the best earnings seasons in memory, with S&P 500 underlying earnings growth up in the high 20s. The US economy shows strong consumption and investment, shorter-cycle end markets are recovering, and fundamentals are very strong at both company and macroeconomic levels. Higher rates are a headwind, but there are signs rates are going higher for the right reasons, supporting stocks.
SPY HIGH
John Bolton Former US National Security Advisor / Ambassador 3:54
Microsoft monetizing AI, strong upside setup.
Microsoft showed in its latest quarter that it is starting to monetize AI on the application software side, with usage-based revenues flowing through. The strong report cleared investor overhang and opened the way for a move higher, not just for Microsoft but for software more broadly, with AI monetization a key driver.
MSFT HIGH
Up Next
7:21
SpaceX trades post lock-up: Oppenheimer's Timothy Horan on what to expect
CNBC · Aug 07
45:57
Is semiconductors alone not enough? Changes to watch in the second half market | Myeong Min-jun, Park Ga-yeong, Lee Jae-gyu SK Securities PB Assistant Manager [Stock Beginner Rescue Team]
3PRO TV (삼프로TV) · Aug 07
4:38:36
[26.08.07 Afternoon Broadcast Full View] Semiconductors Shaking Again, What's the Signal for KOSPI to Break Out of its Box Range?
3PRO TV (삼프로TV) · Aug 07
33:38
Why Google's Top Engineers Just Quit
Bankless · Aug 07
19:26
[#RealMarket] Korean Stock Market's Color Has Changed... Next Week, 'This Stock' Will Rise When Semiconductor Stocks Rest / Money Is Rushing Here | CEO Kim Dong-yeop
815 Money Talk (815머니톡) · Aug 07

This CNBC video, published August 07, 2026, features John Bolton discussing SPY, MSFT. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: John Bolton  · Tickers: SPY, MSFT