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Yahoo
12 hours ago
- Business
- Yahoo
Broadcom earnings may produce shock and awe
Broadcom earnings may produce shock and awe originally appeared on TheStreet. It would be easy to write off Broadcom's year-to-date stock performance as a "so what?" Don't. Broadcom () shares have been flying in the aftermath of stocks' tumbling in the wake of President Trump's tariff announcement. 🔥! 💰 True, the tech giant's year-to-date return is not impressive, up just 4.4%. But that's due to gyrating markets. Since the end of the first quarter, however, Broadcom has jumped 44.6%, closing Friday at $242.07. That's just 3.9% below its December peak of $251.88. Broadcom will command the most attention of companies reporting quarterly earnings this week. It's a smallish list of stocks overall because the first-quarter earnings season is largely finished. The list includes cybersecurity company CrowdStrike Holdings () , apparel retailer lululemon athletica () and video-game retailer GameStop () . Nvidia () and Costco Wholesale () were last week's glamour stocks and largely delivered what Wall Street wanted. And the stocks were mostly rewarded. Nvidia was up 2.9% for the week. While the shares are up just 0,6% for 2025, they are up nearly 25% in the quarter as stock market has recovered from the tariff shock. Costco ended the week up 3.1% and is up 13.5% on the year. The major averages all ended the week higher. The Standard & Poor's 500 Index climbed 1.8%. The Nasdaq Composite and Nasdaq-100 indexes were rose 2%. The Dow Jones Industrial Average added 1.6%. The S&P 500 ended May with a 6.2% gain, its best month of the year and the best month for the index since November 2023. It is also the S&P 500's best May performance since 1997. The Dow industrials were up 3.9% for May. The tech-heavy Nasdaq-100 added 10.7%. The broader Nasdaq gained 9.6% for the month,Broadcom is expected to tell a pretty good story with its fiscal second-quarter results, due after Thursday's market close. The company makes chips and infrastructure products that are key components used in artificial intelligence. Its core customers include the hyperscalers — Microsoft () , Alphabet () , () and Facebook parent Meta Platforms () . It's been supplying the 5G radio components for the Apple () iPhone. These companies are spending billions of dollars building up their artificial intelligence capacities with software and giant data centers all over the Street estimates Broadcom will earn $1.57 a share, up 15% from a year ago. The revenue estimate is $14.97 billion, up from $12.49 billion a year ago. The company has been beating estimates for multiple quarters. The company saw first-quarter revenue from its AI-related business hit $4 billion, up 77% from a year earlier, and it has forecast huge revenue gains in future quarters, all thanks to AI. More Tech Stocks: Palantir gets great news from the Pentagon Analyst has blunt words on Trump's iPhone tariff plans OpenAI teams up with legendary Apple exec Broadcom was up 5.8% for the week, outperforming the major averages. Since the April market bottom, the shares have handily out-performed every stock in among the Magnificent 7 group stocks. Even Tesla () — up 33%. It's ahead of crypto dealer Coinbase Global () (up 43.2%). Broadcom's market cap is $1.14 trillion, larger than Tesla's $1.12 trillion and the $1.09 trillion market cap for Berkshire Hathaway () and () . In the last 30 trading days, Broadcom has been the ninth-best performer in the Standard & Poor's 500 Index and eighth among stocks in the Nasdaq-100 Index. Yes, the current situation is great and looks strong, but there may some risks to the Broadcom story. The stock may be pricey. Its forward price/earnings ratio was 30.93 on Friday, higher than most semiconductor companies including Nvidia. Its current p/e was nearly 117. Its relative strength index was at 75. Above 75 suggests the stock is overbought and vulnerable to a shock. Broadcom has $66 billion in long-term debt. It has toyed with the idea of buying () , which would be a challenge if it can't sell Intel's foundry business. 2025 has been a gut-wrenching year, as everyone knows, especially President Trump who saw the S&P 500 fell 10.5% in the two days after April 2, aka Liberation Day, when he announced his tariff proposals. Markets Friday were barely changed. So are markets in 2025. The Dow is barely positive. The S&P 500 is off 0.6%, and the Nasdaq is off 1%. The small-cap Russell 2000 index is down 7.4%. The short answer: Ask President Trump. He's already has accused China of violating a tariff pause agreed to earlier this month in Switzerland. (Huge tariffs are suspended on expectation for a trade deal on July 9.) At a rally in Pittsburgh Friday, he vowed plans to impose 50% tariffs on steel imports. His administration is scrambling to fight off a court decision that declared most of his tariff plan unconstitutional. That fight is likely to land before the Supreme Court. The first hint of where investors see the market and global economy headed this coming week will come Sunday when futures trading opens at 6 p.m. ET. Technology company Credo Technology Group () , after Monday's close. Soup maker Campbell Company () , before Monday's open. Crowdstrike Holdings () , after Tuesday's close. Retailer Dollar General () , before Tuesday's open. Retailer Dollar Tree () , before Wednesday's open. Database company MongoDB () , after Wednesday's close. Retailer lululemon athletica () , after Thursday's close. Software company DocuSign () , after Thursday's close. Alcoholic beverage company Brown-Forman () and () , before Thursday's open. GameStop () , before Friday's earnings may produce shock and awe first appeared on TheStreet on Jun 1, 2025 This story was originally reported by TheStreet on Jun 1, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
15 hours ago
- Business
- Miami Herald
Broadcom earnings may produce shock and awe
It would be easy to write off Broadcom's year-to-date stock performance as a "so what?" Don't. Broadcom (AVGO) shares have been flying in the aftermath of stocks' tumbling in the wake of President Trump's tariff announcement. Get $100 off TheStreet Pro - our best deal of the summer won't last long! Your portfolio will thank you! True, the tech giant's year-to-date return is not impressive, up just 4.4%. But that's due to gyrating markets. Since the end of the first quarter, however, Broadcom has jumped 44.6%, closing Friday at $242.07. That's just 3.9% below its December peak of $251.88. Broadcom will command the most attention of companies reporting quarterly earnings this week. It's a smallish list of stocks overall because the first-quarter earnings season is largely finished. The list includes cybersecurity company CrowdStrike Holdings (CRWD) , apparel retailer lululemon athletica (LULU) and video-game retailer GameStop (GME) . Nvidia (NVDA) and Costco Wholesale (COST) were last week's glamour stocks and largely delivered what Wall Street wanted. And the stocks were mostly rewarded. Nvidia was up 2.9% for the week. While the shares are up just 0,6% for 2025, they are up nearly 25% in the quarter as stock market has recovered from the tariff shock. Costco ended the week up 3.1% and is up 13.5% on the Standard & Poor's 500 Index ended May with a 6.2% gain, its best month of the year and the best month for the index since November 2023. It is also the S&P 500's best May performance since 1997. The Dow Jones industrials were up 3.9% in the month and the tech-heavy Nasdaq-100 Index added 10.7%. The broader Nasdaq Composite Index was up 9.6% for the month Related: Fed official sends strong message about interest-rate cuts Broadcom is expected to tell a pretty good story with its fiscal second-quarter results, due after Thursday's market close. The company makes chips and infrastructure products that are key components used in artificial intelligence. Its core customers include the hyperscalers - Microsoft (MSFT) , Alphabet (GOOGL) , (AMZN) and Facebook parent Meta Platforms (META) . It's been supplying the 5G radio components for the Apple (AAPL) iPhone. These companies are spending billions of dollars building up their artificial intelligence capacities with software and giant data centers all over the world. Related: Forget tariffs, here's why CEOs worry about a looming recession Wall Street estimates Broadcom will earn $1.57 a share, up 15% from a year ago. The revenue estimate is $14.97 billion, up from $12.49 billion a year ago. The company has been beating estimates for multiple quarters. The company saw first-quarter revenue from its AI-related business hit $4 billion, up 77% from a year earlier, and it has forecast huge revenue gains in future quarters, all thanks to AI. More Tech Stocks: Palantir gets great news from the PentagonAnalyst has blunt words on Trump's iPhone tariff plansOpenAI teams up with legendary Apple exec Broadcom was up 5.8% for the week, outperforming the major averages. Since the April market bottom, the shares have handily out-performed every stock in among the Magnificent 7 group stocks. Even Tesla (TSLA) - up 33%. It's ahead of crypto dealer Coinbase Global (COIN) (up 43.2%). Broadcom's market cap is $1.14 trillion, larger than Tesla's $1.12 trillion and the $1.09 trillion market cap for Berkshire Hathaway (BRK.A) and (BRK.B) . In the last 30 trading days, Broadcom has been the ninth-best performer in the Standard & Poor's 500 Index and eighth among stocks in the Nasdaq-100 Index. Yes, the current situation is great and looks strong, but there may some risks to the Broadcom story. The stock may be pricey. Its forward price/earnings ratio was 30.93 on Friday, higher than most semiconductor companies including Nvidia. Its current p/e was nearly 117. Its relative strength index was at 75. Above 75 suggests the stock is overbought and vulnerable to a shock. Broadcom has $66 billion in long-term has toyed with the idea of buying (INTC) , which would be a challenge if it can't sell Intel's foundry business. 2025 has been a gut-wrenching year, as everyone knows, especially President Trump who saw the S&P 500 fell 10.5% in the two days after April 2, aka Liberation Day, when he announced his tariff proposals. Markets Friday were barely changed. So are markets in 2025. The Dow is barely positive. The S&P 500 is off 0.6%, and the Nasdaq is off 1%. The small-cap Russell 2000 index is down 7.4%. The short answer: Ask President Trump. He's already has accused China of violating a tariff pause agreed to earlier this month in Switzerland. (Huge tariffs are suspended on expectation for a trade deal on July 9.)At a rally in Pittsburgh Friday, he vowed plans to impose 50% tariffs on steel administration is scrambling to fight off a court decision that declared most of his tariff plan unconstitutional. That fight is likely to land before the Supreme Court. The first hint of where investors see the market and global economy headed this coming week will come Sunday when futures trading opens at 6 p.m. ET. Technology company Credo Technology Group (CRDO) , after Monday's close. Soup maker Campbell Company (CPB) , before Monday's open. Crowdstrike Holdings (CRWD) , after Tuesday's Dollar General (DG) , before Tuesday's Dollar Tree (DLTR) , before Wednesday's open. Database company MongoDB (MDB) , after Wednesday's close. Retailer lululemon athletica (LULU) , after Thursday's company DocuSign (DOCU) , after Thursday's beverage company Brown-Forman (BF.A) and (BF.B) , before Thursday's (GME) , before Friday's open. Related: Veteran fund manager who predicted April rally updates S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
3 days ago
- Business
- Yahoo
How to buy an annuity: Get passive income for life
An annuity offers a stream of cash flow and the safety that you won't outlive your income during retirement. Annuities are a popular retirement strategy, and you can buy them from an insurance company with a variety of features, depending on your specific financial needs and goals. Here's how to purchase an annuity and get passive income for life. Annuities are highly specialized products that offer a range of potential benefits, but they're complex and difficult to get out of if you change your mind. So, the best place to begin is to evaluate your own financial needs. An annuity provides cash flow over an extended period of time, potentially for life. It also offers various tax advantages that can help you defer taxes on the investment. You'll need to understand how that fits into your financial circumstances and whether an annuity is a good investment for you. What is your budget likely to be in retirement? Will you need to fill a gap in your budget with the passive income of an annuity? Does it make sense for you to earn lower long-term returns for the safety of an annuity's cash flow, as opposed to potentially much higher returns in stocks? Do you need cash flow right now, or can you wait a decade or more until you need the income? Do you want an annuity that offers income for life or one that offers it for a fixed period? Do you want an annuity just for yourself or for a surviving spouse, too? Annuities can provide a lot of features and benefits, meaning they can fit the needs of many individuals, though extra benefits increase the cost of the contract. New to annuities? Annuities are complicated and a bit different from other financial products. Learn how annuity fees and commissions work and the common annuity terms that are helpful to know. Once you've assessed your needs, you can determine which annuity may fit those needs. Annuities come in a variety of different types, depending on how they generate money and when you receive that money.A fixed annuity guarantees a minimum return on your investment and will pay out over a specified term.A variable annuity invests in a variety of mutual fund-like assets that offer the potential for higher returns. The annuity's return and payout depend on the investments' performance and the expenses they indexed annuity offers a return that tracks an index, such as the Standard & Poor's 500 Index, which owns hundreds of America's best companies. This type of vehicle usually caps your upside potential while providing downside protection. Annuities can also be divided by when the cash flow annuities pay out at a specified time in the future, perhaps at some age in retirement, potentially after decades of annuities begin paying out within a year or less. In addition to these broad categories, annuities may offer a range of features that provide additional advantages, known as riders. For example, you can structure an annuity to offer a cash payout on death, much like life insurance. You can also structure an annuity to pay for a specific period of time, such as 20 years or even for life. Annuities can also be set up to pay out to a surviving spouse, ensuring that they continue to enjoy the annuity's income for the rest of their life. Annuities are contracts that are typically created by insurance companies, so you can contact one of the best annuity companies to begin the purchase process. But you can also purchase them through a top financial advisor and some banks. Annuities are not backed by the U.S. government, so you'll want to select an annuity provider that has the ability to pay the contract's claims. To select a strong provider, you'll want to evaluate firms that have top financial strength ratings from A.M. Best or other rating agencies. It can also be worthwhile to look for high customer satisfaction scores, including from reviewers such as J.D. Power. While it can be important to look for the best annuity rates, you'll also want to consider other factors, such as whether the company offers annuities with death benefits (and how much), as well as their policy on surrender fees if you opt to close the annuity early. You'll also want to know the company's administrative charges, which can be hefty. Get started: Match with an advisor who can help you achieve your financial goals When you've decided on an annuity and a provider, you can begin the application process. Annuities are tremendously complex, and the contracts can run dozens of pages. It's important to carefully read the document and fully understand your responsibilities and rights under the contract. You do not want to learn you're not getting what you expected decades down the road. You'll need to fill out various personal and financial information as part of the application. Annuity rates change, so fill out the application in a timely manner if you want to receive those benefits. You can pay for your annuity in different ways, depending on the type of annuity and its terms. You pay cash for the annuity but may be able to purchase it through a tax-advantaged account such as a 401(k), 403(b) or IRA. You can also choose to purchase an annuity with a single lump sum or fund the contract with a series of premium payments over time. You may also transfer an existing annuity to a new annuity as part of a tax-free 1035 exchange. However, you may still pay substantial transfer fees for moving from one provider to another. An annuity can be the right purchase at various points in your financial life. For some individuals, it makes more sense to invest in lower-fee, higher-return investments such as stock index funds for decades. You can likely earn higher returns and pay lower fees, and then decades later invest in an immediate annuity if you decide you need the income then. This approach can also work well inside a tax-advantaged account such as a 401(k), 403(b) or IRA. These accounts allow your money to compound in high-return investments without the drag of taxes, and then you can purchase an immediate annuity near retirement for the income. Annuities can also make sense for higher earners who are looking for investments that earn tax-deferred income, especially once they've exhausted other tax-advantaged accounts. Regardless of when you decide to purchase an annuity, it can make sense to begin investing early so that you give your money more time to compound. If you're considering buying an annuity, it's important to carefully consider how it meets your needs. Because annuities are complex financial contracts, it's essential to understand them fully — in particular, their costs — so that you know exactly what you're buying and the benefits it provides. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
Yahoo
3 days ago
- Business
- Yahoo
Earnings show ‘uncertainty' is only sure thing for investors
(Bloomberg) — Earnings season is finally over, and for investors one thing is certain: Corporate executives and Wall Street analysts are deeply concerned about the 'uncertainty' sparked by President Donald Trump's combative trade plans. NYC Congestion Toll Brings In $216 Million in First Four Months Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania The Economic Benefits of Paying Workers to Move NY Wins Order Against US Funding Freeze in Congestion Fight Why Arid Cities Should Stick Together 'As we look to the rest of the year, there is still uncertainty related to tariff levels, timing and countries involved in addition to the potential actions of others in the industry, as well as the potential reaction of American consumers,' Corie Barry, chief executive officer of Best Buy Co. (BBY), said during the company's earnings call Thursday. She's hardly alone. Deckers Outdoor Corp.'s (DECK) chief financial officer said last week that the company can't give full-year guidance due to 'macroeconomic uncertainty related to global trade policy.' And AT&T Inc. (T) is leaving flexibility in its balance sheet so it can respond to 'a competitive environment or any uncertain things that occur in the macro environment,' CEO John Stankey said. Since the beginning of April, the words 'uncertain,' 'uncertainty' and 'uncertainties' have been used about 3,100 times during companies' earnings calls and other events, according to an analysis of transcripts compiled by Bloomberg. That's the most in any quarter based on records going back more than two decades, topping even the height of the global financial crisis in 2008 and the beginning of the Covid-19 pandemic in 2020. The level of uncertainty is rising as the courts challenge Trump's sweeping global tariffs. On Wednesday, a three-judge panel for the US Court of International Trade declared that the Trump administration had wrongly invoked a 1977 law in imposing levies on dozens of countries and that the move was therefore illegal. Then on Thursday, a federal judge in Washington ruled that a number of Trump's tariffs on China and other countries were unlawful. Finally, on Thursday afternoon a federal appeals court temporarily paused the Court of International Trade's ruling on Trump's tariffs so it can weigh a longer lasting stay sought by the government. For its part, the Trump administration has vowed to appeal the decision to the Supreme Court if necessary. All of this lack of clarity on trade and the impact on the economy is weighing on stock-market investors, even as the S&P 500 Index (^SPX) has rebounded from its April lows and is now less than 4% from the all-time peak it hit in February. 'It's really hard to feel confident that we're going to surge higher to record highs with this overhang,' said Mark Hackett, chief market strategist at Nationwide. Meanwhile, a measure of chief executives' confidence has plunged to the lowest level since 2022. More than 80% of executives said they expected a recession within the next year-and-a-half, according to a May survey by the Conference Board in collaboration with the Business Council. On Goldman Sachs Group Inc.s (GS) April 14 earnings call, CEO David Solomon said a lack of clarity had constrained clients' ability to make 'important' decisions. 'This uncertainty around the path forward and fears over the potentially escalating effects of the trade war have created material risks to the US and global economy,' he said. 'We are hopeful that feedback from companies large and small, institutional investors and ultimately consumers will support an approach that will lead to greater economic certainty and long-term growth.' Six weeks later, US trade policy is still in flux. Countries are racing to strike deals before Trump's tariff pauses end, while the president keeps rattling markets with threats on social media. Meanwhile, the US economy shrank in the first quarter, but other economic data has largely held firm. Companies have by and large kept capital spending plans intact despite fears of a pullback, which is encouraging to investors. However, for corporate executives, the risk of the unknown remains the biggest fear. 'In the longer term, the secondary effects of tariffs, like impacts to global GDP growth and energy demand, are much more complex and remain a source of uncertainty,' Exxon Mobil Corp. (XOM) CEO Darren Woods said Wednesday. 'We're staying focused on the things we can control.' (Adds CEO confidence survey in ninth paragraph.) YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce How Coach Handbags Became a Gen Z Status Symbol Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy
Yahoo
5 days ago
- Business
- Yahoo
Stock Market Today: All Eyes Turn to Nvidia
Technology shares were enjoying a modest rally this afternoon as investor awaited earnings from AI giant Nvidia () and Salesforce () , both due after today's close. Nvidia shares were up 1% to $136.90 at 2:40 p.m. Nvidia's semiconductors and Graphic Processing Units dominate the market for chips used to power artificial intelligence applications. Salesforce, a powerhouse in customer relations management, was off 0.8% at $275.01. While techs were higher, the Standard & Poor's 500 Index and the Dow Jones Industrial were both modestly lower. Drifting is a good descriptor for the overall market. The Federal Reserve, meanwhile, released the minutes of its May 6-7 meeting. The minutes suggest Fed officials believed market and trade volatility were enough to leave its key federal funds rate at 4.25% to 4.5%. Nine of 11 S&P 500 sectors were lower. The leading sector was information technology led by Fair Isaac Corp. () , up 8.6%. It was followed by Broadcom () and Super Micro Computer () , up 1.6% and 1.32%, respectively. Communications Services were the other winners led by Discovery Inc. () and News Corp. Class B () , up 4,3% and 1.3%, respectively. Facebook parent Meta Platforms () was up slightly after its annual meeting. The company is breaking its AI team into two pieces to better compete with OpenAI and Google-parent Alphabet () . Utilities were still the weakest sector, off 1.6%, weighed down by higher interest rates. The 10-year yield was at 4.481%, up from 4.45% on Tuesday. Shares of Nvidia () were edging higher this afternoon ahead of its fiscal-first-quarter earnings report, due after Wednesday's close. The shares were up 0.5% to $136.14 at 1:20 p.m. Stocks generally were lower with the Standard &Poor's 500 Index off just six points at 5,915. The Nasdaq Composite was off very slightly at 19,199. The Dow Jones industrials were off 102 points at 42,242. Only two of 11 S&P 500 sectors were higher, however: Communications Services and Information Technology. The first includes Facebook parent Meta Platforms () , up 0.6% to $646.16 as the company holds its annual meeting Techs were led by Fair Isaac () , the company that generates credit scores for consumers. The shares were up 8.6% to $1632. The weakest sector was utilities, lower because bond yields had moved higher today. The 10-year Treasury yield was at 4.49%, up slightly from Monday. The yield had reached as much as 4.61% on May 21. Crude oil was up $1.11 at $62.00. The Federal Reserve was scheduled to release minutes of its May 6-7 meeting at 2 p.m. ET. Stocks are drifting lower in midday trading. The S&P 500 Index is 30 points off the day's highs at 5906, down 0.25% on the day. More stocks are down than up, too. Among S&P 500 constituents, for every stock that's higher today, around 5 are down. You can see that clearly on this heat map, where the biggest ups include AutoZone () , Palantir () , and the healthcare providers like UnitedHealth () , Elevance () and CVS () . UNH has been beaten down, and while there's no big news to explain today's gain, the company has mentioned seeing cost benefits to using AI in the future and reports say that Congress members have bought stock. Nvidia has drifted off the day's highs and is down slightly. But there are way more red boxes that green ones. Yesterday, I mentioned the huge gain in the Conference Board's Consumer Sentiment for May. David Rosenberg tweeted the following, which prompted some discussion in TheStreet Pro's Daily Diary about the value of this survey. Our own Doug Kass at TheStreet Pro suggested that this number should be ignored. It's a lagging indicator that was influenced by the big jump in stock prices. Especially considering that people are more than twice as confident in the stock market as they are in their own jobs! What else is happening? While not directly related to Tesla () , another SpaceX rocket launch failed yesterday. While launching rockets into space is incredibly hard and failure will be part of the road to success, this begs the question of whether Elon Musk has taken his eye off the ball with his foray into politics. That's all for now! Happy Wednesday! After the close of trading today, all eyes will turn to Nvidia () as investors await the company's Q1 earnings release. The Santa Clara, Calif., semiconductor maker is expected to report earnings of 93 cents a share on revenue of $43.2 billion, according to LSEG. TheStreet Pro's Stephen "Sarge" Guilfoyle says in his Market Recon column today that investors should also be on the lookout for "the reality (or not) of the company's April projection of a $5.5 billion inventory-based charge after President Trump tightened export controls for high-technology-type products headed for mainland China that could be used for military purposes." Nvidia shares are up in premarket trading. What else is happening today? Salesforce () is also set to report after the close. Expectations are for quarterly earnings per share of $2.55 on revenue of $9.75 billion. Yesterday was quite a day. Following Sunday's news that the Trump administration's aggressive tariffs on Europe would be delayed at least until July, stocks ripped more than 2% higher. All sectors were up, led by Consumer Discretionary, which gained nearly 3%. Breadth was strong, too. As for today, expect the market to be less exuberant. S&P futures are up 0.11%, while the Dow is down slightly. European markets are lower. Bond prices are slightly lower, sending yields up, while gold and crude oil are higher. Stock Market Today: All Eyes Turn to Nvidia first appeared on TheStreet on May 28, 2025
