Business and Finance News - 6.13.24

Broadcom Exceeds Q2 Earnings Estimates, Announces 10-for-1 Stock Split Starting July 15, Projects $51B in 2024 Sales 

• Broadcom's (AVGO) Q2 earnings exceeded analyst estimates.

• The company announced a 10-for-1 stock split.

• Stock split begins trading on July 15.

• Q2 EPS was $10.96, above the expected $10.84.

• Q2 revenue was $12.49 billion, surpassing the $12.01 billion expectation.

• Broadcom expects $51 billion in sales for fiscal 2024.

• AI products contributed $3.1 billion to Q2 revenue.

-Broadcom Inc. is a global technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions.

Caterpillar Hikes Dividend by 8%, Adds $20 Billion to Buyback Program

• Caterpillar (CAT) increased its dividend by about 8%, now $1.41 per share.

• The dividend will be payable on August 20.

• Caterpillar added $20 billion to its share buyback program.

• The total share buyback authorization is now $21.8 billion with no expiry date.

• Strong performance from the machinery, energy, and transportation segment fueled these moves.

• CEO Jim Umpleby cited robust free cash flow as the reason for the dividend hike.

• Caterpillar's shares rose less than 1%

-Caterpillar Inc. is a global leader in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

Caterpillar Hikes Dividend by 8%, Adds $20 Billion to Buyback Program

• Caterpillar (CAT) increased its dividend by about 8%, now $1.41 per share.

• The dividend will be payable on August 20.

• Caterpillar added $20 billion to its share buyback program.

• The total share buyback authorization is now $21.8 billion with no expiry date.

• Strong performance from the machinery, energy, and transportation segment fueled these moves.

• CEO Jim Umpleby cited robust free cash flow as the reason for the dividend hike.

• Caterpillar's shares rose less than 1%

-Caterpillar Inc. is a global leader in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

FedEx to Lay Off 2,000 Employees in Europe Amid Declining Demand and Cost-Cutting Measures

• FedEx (FDX) plans to lay off up to 2,000 employees across Europe.

• Layoffs are part of streamlining workforce and reducing structural costs.

• Job cuts will cost FedEx between $250 million and $375 million through fiscal 2026.

• The company is facing a significant decline in global shipping demand.

• Layoffs include reducing payroll, restructuring operations, and closing facilities.

• FedEx claims the layoffs won’t impact its services.

• Affected employees will be contacted on a rolling basis with varying timelines per country.

-FedEx Corporation is a multinational delivery services company known for its global courier and logistics services.

Elon Musk Drops Lawsuit Against OpenAI, Citing Alleged Mission Shift as Apple's AI Partnership Boosts Stock

• Elon Musk asked a California court to dismiss his case against OpenAI and Sam Altman.

• The case accused OpenAI of abandoning its mission to develop AI for humanity's benefit.

• Musk's lawyers did not provide a reason for the dismissal request.

• The dismissal request came a day before OpenAI's bid to dismiss the case.

• The case was dismissed "without prejudice," allowing Musk to reactivate it later.

• The lawsuit argued OpenAI deviated from its altruistic goals to focus on profit.

• Musk criticized Apple's partnership with OpenAI, boosting Apple's stock market value to over $3 trillion.

-OpenAI is an artificial intelligence research organization and company with a mission to ensure that artificial general intelligence (AGI) benefits all of humanity.

Here’s how the markets closed yesterday:

• Dow Jones: 38,712.21 -35.21 (-0.09%)

• S&P 500: 5,421.03 +45.71 (+0.85%)

• Nasdaq: 17,608.44 +264.89 (+1.53%)

• Bitcoin (BTC): $68,185.61 (4:30PM PST on 6/12/24)

• Ethereum (ETH): $3,562.83 (4:30PM PST on 6/12/24)

Here’s how the THE SUPER SIX STOCKS did yesterday:

• Microsoft (3.278T): 441.06 +8.38 (+1.94%)

• Apple (3.267T): 213.07 +5.92 (+2.86%)

• Nvidia (3.085T): 125.20 +4.29 (+3.55%)

• Alphabet (2.219T): 179.56 +1.37 (+0.77%)

• Amazon (1.945T): 186.89 -0.34 (-0.18%)

• Meta Platforms (1.291T): 508.84 +1.37 (+0.27%)