Stock price movements
Broadcom (AVGO) stock rose 1.35% and closed at $293.84 on March 18. Shares of the semiconductor giant have risen 6.7% this month as of March 18. AVGO also reached a new high of $299.55 in the March 15 session, mainly driven by its fiscal 2019 first-quarter earnings results for the period that ended on February 3, 2019, which it reported on March 14.
Broadcom stock has risen 15.6% YTD (year-to-date) compared to the S&P 500’s rise of 13% YTD as of March 18. The stocks of Broadcom’s semiconductor peers Qualcomm (QCOM), NVIDIA (NVDA), Micron (MU), Marvell Technology (MRVL), Intel (INTC), and Advanced Micro Devices (AMD) have risen 1%, 26.7%, 24.8%, 23.2%, 16.0%, 25.9%, respectively, YTD.
Broadcom posted mixed results in the first quarter
Broadcom came out with better-than-expected earnings in the first quarter, wherein its adjusted EPS of $5.55 exceeded analysts’ expectation of $5.23. Its EPS also rose 8.4% YoY (year-over-year) from $5.12.
At $5.79 billion, Broadcom’s revenue missed analysts’ estimate of $5.82 billion by 0.5%. Nevertheless, the chip maker posted revenue growth of 8.7% YoY in the quarter driven by its strong performance in the networking business and the Infrastructure Software segment offset by a drop in its wireless business.
Like its peers, the company’s performance was hurt by a slowdown in China, but optimism over the trade talks between the United States and China could give a boost to the semiconductor industry in the near term. Broadcom has maintained its fiscal 2019 guidance.
Semiconductor giant Broadcom (AVGO) achieved quarterly revenue of nearly $5.79 billion in the first quarter fiscal 2019.
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.
According to Reuters, on May 16, Vale (VALE) told prosecutors that a dam was at risk of rupturing at its Gongo Soco mine.