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
June 14 (Reuters) - U.S. stock index futures dropped on
Friday, as the long-feared hit to global growth from President
Trump's trade war crystalised in slashed sales forecasts from
chipmaker Broadcom, and signs of the worst slowdown in Chinese
industry in 17 years.
Shares of Broadcom Inc AVGO.O plunged 9.8% in premarket
trading, after it cut its revenue forecast for 2019 by $2
billion, blaming the U.S.-China trade conflict and export curbs
on Huawei Technologies Co Ltd HWT.UL . Data from China showed industrial output growth in the
world's second largest economy slowed to a more than 17-year low
in May, sending a chill through stock market investors globally.
Nasdaq 100 e-minis NQc1 pointed to a 59.5 point fall, or
0.79% 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 the
Federal Reserve will reduce interest rates soon to combat
slowing global growth, a stark contrast to the steady path of
monetary tightening it was on until the end of last year.
The Broadcom news was one of the clearest indications yet
from the trade-sensitive tech sector of the scale of pain
companies can expect from Washington's stand-off with China.
Semiconductors stocks, who both source product and sell
heavily in China, tumbled, with Intel Corp INTC.O , Advanced
Micro Devices Inc AMD.O and Micron Technology Inc MU.O down
between 2.2% and 4%. Shares of Apple Inc AAPL.O also slipped
1.2%.
A Fed meeting next week may provide the acid test of market
expectations that the U.S. central bank could cut rates as much
as three times this year, while a Group of 20 summit at the end
of the month may yet yield more progress on a trade deal.
In the latest salvo between the two sides, China said on
Friday it was raising anti-dumping duties on certain alloy-steel
seamless tubes and pipes from the United States and the European
Union by as much as 10 times. On the macro front, the Commerce Department's report on
retail sales for May is expected to show a 0.6% rise at 8:30
a.m. ET, following a 0.2% drop in April.