Diamonds and Dogs

5/23/23

Apple gives a thumbs up to Broadcom (AVGO). The chipmaker is up 2% as Apple announces a new multiyear, multibillion-dollar agreement to work with Broadcom to develop 5G radio frequency components and other wireless connectivity components. In the current climate of geopolitical tensions between the U.S. and China, and ongoing fears that China could one day move to take control of Taiwan, there is growing pressure on Apple to rely more on parts and manufacturing in the U.S.

AutoZone (AZO) leads the S&P 500 lower. The auto retailer is down 6% following earnings. Earnings actually beat estimates, but sales missed even though they grew 11% year over year. Elevated material costs and supply chain woes led AutoZone to hike prices for their products, causing a slackening of demand particularly in March. Inventory rose 7.4% for the quarter.