US STOCKS-Wall St drops as Broadcom warning pushes chip stocks lower

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* Broadcom slides after warning of chip demand slowdown
* Tech down most among 11 major S&P sectors; Chips tumble
* China's May industrial output growth cools to 17-yr low
* Data shows U.S. retail sales rise in May
* Indexes down: Dow 0.16%, S&P 0.24%, Nasdaq 0.53%

(Updates prices, comments)
By Shreyashi Sanyal
June 14 (Reuters) - U.S. stocks dropped on Friday, as shares
of chipmakers sank on a warning from sector major Broadcom of a
broad weakening in global demand and Chinese data pointed to the
worst slowdown in industrial growth in 17 years.
Shares of Broadcom Inc AVGO.O fell 6.53% after it cut its
full-year revenue forecast by $2 billion, blaming the U.S.-China
trade conflict and export curbs on Huawei Technologies Co Ltd
HWT.UL . Shares of Apple Inc AAPL.O also slipped 1% and weighed the
most on the three main indexes. Broadcom is a major supplier to
the iPhone maker.
"Until there's a resolution or some type of clarity on the
trade deal with China, you're going to see the chipmakers show
weakness," said Ryan Nauman, market strategist at Informa
Financial Intelligence in Zephyr Cove, Nevada.
Losses in chip companies, who both source product and sell
heavily in China, dragged the benchmark S&P 500 index .SPX
lower, with the Philadelphia Semiconductor index .SOX tumbling
2.67%.
"People are backing off of optimism that a trade deal will
get done and it'll probably drag out longer into the year,"
Nauman said.
China's industrial output growth in May slowed below
expectations and showed signs of weakening demand, sending a
chill through stock market investors globally. Technology stocks .SPLRCT fell 0.8%, the most among the 11
major S&P sectors. The trade-sensitive industrials .SPLRCI
slipped 0.61%.
At 11:27 a.m. ET the Dow Jones Industrial Average .DJI was
down 41.61 points, or 0.16%, at 26,065.16, the S&P 500 .SPX
was down 7.07 points, or 0.24%, at 2,884.57 and the Nasdaq
Composite .IXIC was down 41.69 points, or 0.53%, at 7,795.44.
The S&P 500 index has gained 4.8% in June so far and was on
track to end the week slightly higher, on hopes the Federal
Reserve will soon cut interest rates.
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 G20 summit at the end of the
month may yet yield more progress on a trade deal.
In a bright spot, data showed U.S. retail sales increased in
May and sales for the prior month were revised higher,
suggesting a pick-up in consumer spending that could ease fears
the economy was slowing down sharply in the second quarter. pet products retailer Chewy Inc CHWY.N rose 63% in
its market debut on Monday, at a valuation of over $14 billion
and joined a host of high-profile companies, such as Lyft Inc
LYFT.O and Uber Technologies Inc UBER.N that listed on U.S.
stock exchanges this year.
Declining issues outnumbered advancers for a 1.74-to-1 ratio
on the NYSE and a 1.96-to-1 ratio on the Nasdaq.
The S&P index recorded 24 new 52-week highs and two new
lows, while the Nasdaq recorded 31 new highs and 50 new lows.