S&P 500 Just 2% From All-Time High as Beijing Talks Continue
June 10 - The S&P 500 moved slightly higher Tuesday and now sits about 2% below its all-time high of 6,147.43, as investors watch the second day of U.S.-China trade negotiations unfold in London.
Officials have yet to share firm outcomes, but U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick both said initial talks were constructive, without disclosing specific progress.
List of 52-Week Lows
List of 3-Year Lows
List of 5-Year Lows
Export restrictions remain a central issue. The U.S. is reportedly pressing China to boost shipments of rare earth materials critical for semiconductors, smartphones, and EVs. In exchange, Washington may ease curbs on American exports of chipmaking gear, aircraft parts, and ethane, according to the Financial Times.
Last year, U.S. goods exports to China totaled $143.22 billion, while imports reached $438.74 billion, leaving a trade gap of $295.51 billion. For 2025, the deficit is already $88.02 billion through April.
Investors are watching closely, as the outcome of the talks could impact supply chains and global tech stocks.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
37 minutes ago
- Business Insider
Broadcom Stock (AVGO) Primed to Maintain Long-Term Uptrend as Indices Return to Mean
Broadcom (AVGO) presents a strong investment opportunity, driven by its strategic focus on value creation within the rapidly evolving advanced technology space. As a key enabler of AI, Broadcom goes beyond hardware—its high-margin ecosystem, powered by AI and enterprise software, adds significant long-term appeal. While the stock may appear expensive at first glance, its valuation is justified by the company's foundational role in AI infrastructure and the robust, secular growth trends it continues to ride. Confident Investing Starts Here: In terms of raw performance, AVGO stock has outperformed the market by a substantial margin over the past year. Further underpinning the bullish theme, broader U.S. stock indices such as the Dow Jones, Nasdaq, and S&P 500 are all back at their historic highs, having shaken off the macroeconomic shock of a U.S.-China trade war. Given the solid fundamentals and strong outperformance, I think AVGO serves as a superb addition to any investor's portfolio; I'm stoutly bullish. Broadcom Is a Next Generation Technology Enabler Broadcom's latest quarterly results underscore the flawless execution of its strategy. The company reported impressive revenue of $15 billion, up 20% year-over-year. AI Semiconductor sales surged 46% to $4.4 billion, while Infrastructure Software revenue reached $6.6 billion, marking 25% growth. Free cash flow reached $6.4 billion, accounting for 43% of revenue and representing a 44% year-over-year increase. Guidance for fiscal Q3 2025 further strengthens the bullish outlook. Broadcom projects $15.8 billion in total revenue, reflecting a 21% year-over-year increase. AI Semiconductor sales are expected to rise 60% to $5.1 billion, and Infrastructure Software revenue is projected to grow 16% to $6.7 billion. These results and forward-looking projections reflect Broadcom's consistent value creation and operational discipline. Under CEO Hock Tan's leadership, the company has demonstrated mastery in driving growth, executing strategic mergers and acquisitions, and optimizing internal efficiencies—all with a clear focus on long-term shareholder value. Broadcom Is Constructing an AI Infrastructure Fortress Broadcom sits at the heart of the AI boom, strategically investing in custom silicon and high-performance networking, both of which are foundational to the long-term economics of AI infrastructure. Major hyperscalers are increasingly relying on Broadcom's custom application-specific integrated circuits (ASICs) to power their AI workloads, and this reliance is poised to grow. CEO Hock Tan projects the current 60% year-over-year growth in AI semiconductor revenue will extend into Fiscal 2026, driven by the multi-year expansion of AI infrastructure, the rising complexity of AI models, and continued investment across both training and inference. Beyond custom silicon, Broadcom is a significant force in AI networking through its Tomahawk and Jericho switch families—critical technologies for interconnecting large-scale AI clusters. The Tomahawk 6, for example, delivers up to 102.4 terabits per second of switching capacity, enabling the performance demands of next-gen AI systems. AI networking, which already accounts for approximately 40% of Broadcom's AI revenue, is expected to grow sharply, and a year-over-year increase exceeding 170% in this segment would not be surprising. Broadcom Also Has a Software Profit Engine Despite initial skepticism, Broadcom's acquisition and integration of VMware has been a masterful example of disciplined, long-term value creation. Broadcom's strategy for VMware to become a high-margin, recurring software business is beginning to take shape. Broadcom has made significant strides in converting VMware's customers to a subscription-based business model. For example, greater than 87% of VMware's top 10,000 customers have adopted the VMware Cloud Foundation (VCF) subscription, with the conversion expected to occur primarily over the next 12-18 months. This change has significantly improved Broadcom's infrastructure software operating margins, which increased from 60% to 76% in Fiscal Q2 2025. I expect further margin improvement as the company continues to roll off legacy contracts and solidify its subscription base. Financial Masterplanning at Broadcom Broadcom exemplifies disciplined financial management, with robust free cash flow and strong returns on deployed capital forming the backbone of its investment appeal. In Fiscal Q2 2025, the company delivered a record $6.41 billion in free cash flow—an impressive 43% of revenue—and this level of cash generation is expected to persist. Free cash flow remains the engine that drives Broadcom's ability to invest, deleverage, and return capital to shareholders. Following its earnings release, Broadcom reduced its gross principal debt from $69.4 billion to $67.8 billion, reaffirming its commitment to maintaining a 2x debt-to-EBITDA ratio. Management has been clear: cash not allocated to dividends will be prioritized for debt reduction. At the same time, Broadcom continues to return capital to shareholders on a large scale. In Q2 alone, the company paid out $2.8 billion in dividends and repurchased $4.2 billion in stock. In April, the Board authorized a new $10 billion share repurchase program, which will run through the end of 2025, signaling strong internal confidence in the company's long-term prospects. As free cash flow accelerates and debt is further reduced, this disciplined approach could create a compounding effect on earnings per share. Should the stock experience a pullback to technical support levels, I believe it could present an attractive entry point toward achieving a 30% annual return target. Is Broadcom a Buy, Sell, or Hold? Broadcom has a consensus Strong Buy rating on Wall Street based on 27 Buys, two Holds, and zero Sells. The average stock price target for AVGO is $289.60, indicating a potential return of 18% over the next 12 months. I'm Staying Bullish on Broadcom In my view, the convergence of accelerating AI-driven revenue, expanding high-margin software contributions from VMware, and Broadcom's disciplined capital allocation creates a particularly compelling investment case. These factors form the core of my thesis for achieving an annual return in the 30% range over the coming years. While the company continues to actively pursue strategic acquisitions, it is also steadily building long-term value through foundational infrastructure and prudent financial stewardship. With strong momentum, exceptional leadership, and a clear growth runway, Broadcom stands out as a high-quality opportunity in a transformative sector.
Yahoo
37 minutes ago
- Yahoo
Democrat Congresswoman draws boos over 'shameful' sexism remark in committee hearing with Treasury Secretary
A House Ways and Means Committee hearing took an unexpected turn Wednesday when Rep. Linda Sanchez (D-CA) accused Treasury Secretary Scott Bessent of interrupting her because of her gender—prompting audible groans from the room. The exchange occurred during a tense five-minute questioning session, where Sanchez challenged Bessent on the impact of tariffs enacted under President Trump's administration. "Prices are rising on many everyday goods," Sanchez said, citing increases in clothing, shoes, canned food, toys, and household tools. She added, "On average, Trump's tariffs are estimated to cost households $3,000 more for the same goods than they would have last year," though she did not cite the source of the figure when pressed. Trump Says 'Total Reset Negotiated' With China During Tariff Talks In Geneva When Bessent attempted to interject, Sanchez quickly cut him off: "Please don't interrupt me… I know I'm a woman, but please try to limit yourself to answering my questions." That remark prompted groans from the hearing room, with one attendee audibly reacting, "Oh, come on." Sanchez responded: "No, I'm sorry, but we get talked over all the time, and I don't want that to happen at this hearing." Read On The Fox News App Bessent, who is openly gay, did not address the accusation and instead focused on defending the administration's trade policies. When Sanchez challenged him on pricing impacts and China's trade behavior, Bessent responded, "That's incorrect," and said, "They met their agreements under President Trump in 2020, and President Biden did not enforce them." Wh Slams Dems' 'Partisan Games' After Trump-foe Schiff Calls For Insider Trading Investigation Over Tariffs Sanchez repeatedly claimed that American consumers are paying more due to tariffs and described recent negotiations with China as rushed and lacking transparency. "A poorly negotiated trade deal with China is probably not worth the paper that it is written on," she said. "I was alarmed to hear this morning that Trump said the U.S.–China deal was done after just two days of talks in London." Bessent defended the agreement as an initial step. "The deal struck was for a specific goal, and it will be a much longer process," he said, adding, "China has proven an unreliable partner." The clash between Sanchez and Bessent was repeatedly moderated by Chairman Adrian Smith (R-NE), who reminded members of time limits and decorum throughout the article source: Democrat Congresswoman draws boos over 'shameful' sexism remark in committee hearing with Treasury Secretary
Yahoo
39 minutes ago
- Yahoo
Celsius Holdings Inc. (CELH) Dips More Than Broader Market: What You Should Know
In the latest trading session, Celsius Holdings Inc. (CELH) closed at $42.07, marking a -1.13% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.27% for the day. Shares of the company have appreciated by 12.18% over the course of the past month, outperforming the Consumer Staples sector's gain of 1.96%, and the S&P 500's gain of 6.9%. The investment community will be paying close attention to the earnings performance of Celsius Holdings Inc. in its upcoming release. It is anticipated that the company will report an EPS of $0.22, marking a 21.43% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $628.17 million, indicating a 56.27% increase compared to the same quarter of the previous year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.81 per share and a revenue of $2.17 billion, signifying shifts of +15.71% and +60.16%, respectively, from the last year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Celsius Holdings Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 13.76% downward. Celsius Holdings Inc. currently has a Zacks Rank of #3 (Hold). Looking at valuation, Celsius Holdings Inc. is presently trading at a Forward P/E ratio of 52.67. This indicates a premium in contrast to its industry's Forward P/E of 16.38. It is also worth noting that CELH currently has a PEG ratio of 1.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Food - Miscellaneous industry had an average PEG ratio of 1.62. The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 35% of all 250+ industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Celsius Holdings Inc. (CELH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
