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US STOCKS-Wall Street steadies, Broadcom warning hits chip stocks


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* Broadcom slides after warning of chip demand slowdown

* China's May industrial output growth slows to 17-year low

By Caroline Valetkevitch

NEW YORK, June 14 (Reuters) - U.S. stocks were flat to lowerin late afternoon trading on Friday, though a warning fromBroadcom of a broad weakening in global demand weighed onchipmakers.

Shares of Broadcom IncAVGO.O fell 5.5% after it cut itsfull-year revenue forecast by $2 billion, blaming the U.S.-Chinatrade conflict and export curbs on Huawei Technologies Co LtdHWT.UL . urn:newsml:reuters.com:*:nL4N23K49T

Shares of Apple IncAAPL.O also slipped 0.85% and weighedthe most on the S&P 500 .SPX and the Nasdaq .IXIC . Broadcomis a major supplier to the iPhone maker.

Losses in chip companies, who both source product and sellheavily in China, dropped sharply. The PhiladelphiaSemiconductor index .SOX tumbled 2.60%.

Adding to China worries, Chinese data pointed to the worstslowdown in industrial growth in 17 years. China's industrialoutput growth in May slowed below expectations and showed signsof weakening demand. urn:newsml:reuters.com:*:nB9N23B00Q

A Federal Reserve meeting next week may provide the test ofmarket expectations that the U.S. central bank could cutinterest rates as much as three times this year, while a G20summit at the end of the month may yet yield more progress on atrade deal.

"The key is going to be any progress with China ... Theremight be other headlines, but the bottom line is that's what'sgoing to move the market materially. Otherwise, you're going toget this drifting up and back down," said Alan Lancz, presidentof Alan B. Lancz & Associates Inc. investment advisory firmbased in Toledo, Ohio.

The Dow Jones Industrial Average .DJI rose 30.35 points,or 0.12%, to 26,137.12, the S&P 500 .SPX was unchanged to2,891.64 and the Nasdaq Composite .IXIC dropped 20.90 points,or 0.27%, to 7,816.23.

Stocks are primed for a selloff should the Fed fail to takean even more dovish tilt after policymakers raised expectationsfor a rate cut in recent weeks. urn:newsml:reuters.com:*:nL2N23K1A5

The S&P 500 index has so far gained 4.9% in June and was ontrack to record a second straight week of gains on hopes the Fedwill soon cut rates.

In a bright spot, data showed U.S. retail sales increased inMay and sales for the prior month were revised higher,suggesting a pick-up in consumer spending that could ease fearsthe economy was slowing down sharply in the second quarter. urn:newsml:reuters.com:*:nLNSEHEF5I

Online pet products retailer Chewy IncCHWY.N rose 55% inits market debut on Monday, at a valuation of over $14 billion,and joined a host of high-profile companies, such as Lyft IncLYFT.O and Uber Technologies IncUBER.N that listed on U.S.stock exchanges this year. urn:newsml:reuters.com:*:nL4N23L3II

Declining issues outnumbered advancing ones on the NYSE by a1.43-to-1 ratio; on Nasdaq, a 1.59-to-1 ratio favored decliners.

The S&P 500 posted 33 new 52-week highs and three new lows;the Nasdaq Composite recorded 43 new highs and 73 new lows. (Additional reporting by Shreyashi Sanyal and Aparajita Saxenain Bengaluru; Editing by Arun Koyyur and James Dalgleish) ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393;Reuters Messaging:caroline.valetkevitch.thomsonreuters.com@reuters.net))






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



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