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US STOCKS-Futures drop on Broadcom warning, Chinese gloom


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* Futures fall: Dow 0.20%, S&P 0.30%, Nasdaq 0.79%

By Shreyashi Sanyal

Shares of Broadcom IncAVGO.O plunged 9.8% in premarkettrading, after it cut its revenue forecast for 2019 by $2billion, blaming the U.S.-China trade conflict and export curbson Huawei Technologies Co LtdHWT.UL . urn:newsml:reuters.com:*:nL4N23K49T

Data from China showed industrial output growth in theworld's second largest economy slowed to a more than 17-year lowin May, sending a chill through stock market investors globally. urn:newsml:reuters.com:*:nB9N23B00Q

Nasdaq 100 e-minis NQc1 pointed to a 59.5 point fall, or0.79% fall at opening while Dow e-minis 1YMc1 slid 52 points,or 0.2%, and S&P 500 e-minis ESc1 8.75 points, or 0.3%.

The S&P has gained about 5% in June so far on hopes theFederal Reserve will reduce interest rates soon to combatslowing global growth, a stark contrast to the steady path ofmonetary tightening it was on until the end of last year.

The Broadcom news was one of the clearest indications yetfrom the trade-sensitive tech sector of the scale of paincompanies can expect from Washington's stand-off with China.

Semiconductors stocks, who both source product and sellheavily in China, tumbled, with Intel CorpINTC.O , AdvancedMicro Devices IncAMD.O and Micron Technology IncMU.O downbetween 2.2% and 4%. Shares of Apple IncAAPL.O also slipped1.2%.

A Fed meeting next week may provide the acid test of marketexpectations that the U.S. central bank could cut rates as muchas three times this year, while a Group of 20 summit at the endof the month may yet yield more progress on a trade deal.

In the latest salvo between the two sides, China said onFriday it was raising anti-dumping duties on certain alloy-steelseamless tubes and pipes from the United States and the EuropeanUnion by as much as 10 times. urn:newsml:reuters.com:*:nL4N23L0ER

On the macro front, the Commerce Department's report onretail sales for May is expected to show a 0.6% rise at 8:30a.m. ET, following a 0.2% drop in April. (Reporting by Shreyashi Sanyal and Aparajita Saxena inBengaluru; editing by Patrick Graham) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;Reuters Messaging:Shreyashi.Sanyal.thomsonreuters.com@reuters.net))






This article appears in: World Markets , US Markets , Stocks
Referenced Symbols: AAPL ,



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