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US STOCKS-Wall St to open lower on Broadcom warning, Chinese gloom


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* Broadcom tumbles after warning chip demand slowdown

* China's May industrial output growth cools to 17-yr low

* Futures down: Dow 0.13%, S&P 0.22%, Nasdaq 0.70% (Updates prices, adds comments)

By Shreyashi Sanyal

June 14 (Reuters) - Wall Street was set to drop at the openon Friday, as the long-feared hit to global growth fromPresident Donald Trump's trade war crystallized in slashed salesforecast from chipmaker Broadcom, and more signs of slowdown inChinese industry.

Shares of Broadcom IncAVGO.O plunged 8.6% 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

"Broadcom is definitely leading markets lower and that mightdrive other chips lower as well. Some of it is also about theU.S.-China trade war and the fight over Huawei," said KimForrest, chief investment officer at Bokeh Capital Partners inPittsburgh.

"China was to be expected because tariffs are having aneffect on them and that's starting to show up."

At 8:41 a.m. ET, Dow e-minis 1YMc1 were down 33 points, or0.13%. S&P 500 e-minis ESc1 were down 6.5 points, or 0.22% andNasdaq 100 e-minis NQc1 were down 52.5 points, or 0.7%.

The S&P 500 index .SPX has gained about 5% in June so faron hopes the Federal Reserve will soon cut interest rates, astark contrast to the steady path of monetary tightening it wason until the end of last year.

The dour forecast from Broadcom was one of the clearestindications yet from the trade-sensitive tech sector of thescale of pain companies can expect from Washington's stand-offwith 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% and 3.2%. 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 G20 summit at the end of themonth may yet yield more progress on a trade deal.

Data showed U.S. retail sales increased in May, althoughslightly below expectations, suggesting a pick-up in consumerspending that could ease fears the domestic economy was slowingdown sharply in the second quarter. urn:newsml:reuters.com:*:nLNSEHEF5I

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 (Reporting by Shreyashi Sanyal and Aparajita Saxena inBengaluru; editing by Patrick Graham and Arun Koyyur) ((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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