Thursday, June 5, 2025

We both began and ended today’s trading day with news about President Trump: early this morning, the Chinese government announced Trump and Chinese President Xi held a phone call that lasted an hour and a half on trade policy. By mid-day, an open rift between recently departed DOGE leader and Tesla TSLA CEO Elon Musk sent indexes southward. Their war of words continues on X and Truth Social as I type this.

The Dow closed the session -108 points, -0.25%, while the S&P 500 slimmed -31 points, -0.53%. The Nasdaq shed -162 points, -0.83%, as Tesla shares slid to their worst one-day loss in history, -14%. The small-cap Russell 2000 took the least amount of flak, -0.07%. This all said, the indexes did come off session lows.

Often, this administration feels more like a soap opera than an agency of the most powerful government in the world. It remains to be seen how far this rhetoric goes, but market participants were in no mood to remain very hopeful. At the same time, the war of words between these two titans has very little to do with fundamentals in the equities market.

Earnings Results After the Close

Semiconductor maker Broadcom AVGO beat earnings estimates by a penny in its fiscal Q2 report out after today’s closing bell, to $1.58 per share. This was +43% over the $1.10 per share reported in the company’s year-ago quarter. Revenues of $15.00 billion. The company also increased its revenue guidance for next quarter, to $15.8 billion.

Broadcom bought back shares in the quarter and held a quarterly dividend of $0.59 per share. The company also has $6.4 billion in free cash flow. Not too shabby for the Zacks Rank #2 (Buy)-rated stock. Shares had sold off initially, but have leveled out around -1.5%. Considering overall market conditions, we don’t see this being so bad. (You can see the full Zacks Earnings Calendar here.)

Athleisure giant lululemon LULU reported Q1 earnings after today’s close, also registering a 1-cent beat to $2.60 per share on revenues of $2.4 billion, above the $2.36 billion consensus and +7% from the year-ago quarter. However, the company guided next quarter down, particularly on next-quarter earnings. It was assisted by its growing International presence, which gained +6% overall. The Americas were -2%.

What to Expect from the Stock Market Tomorrow

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This article originally published on Zacks Investment Research (zacks.com).

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