Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

US STOCKS-Wall Street ends down; Broadcom warning hits chip stocks

Published 14/06/2019, 21:49
US STOCKS-Wall Street ends down; Broadcom warning hits chip stocks
US500
-
DJI
-
AAPL
-
AVGO
-
IXIC
-
SOX
-
LYFT
-

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window.)
* Broadcom slides after warning of chip demand slowdown
* China's May industrial output growth slows to 17-year low
* Indexes: Dow down 0.1%, S&P down 0.2%, Nasdaq down 0.5%

(Updates to close)
By Caroline Valetkevitch
NEW YORK, June 14 (Reuters) - U.S. stocks ended lower on
Friday as investors were cautious going into next week's Federal
Reserve meeting, while a warning from Broadcom of a broad
weakening in global demand weighed on chipmakers and added to
U.S.-China trade worries.
Shares of Broadcom Inc AVGO.O fell 5.6% 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 . Other chip companies, which both source product and sell
heavily in China, dropped sharply. The Philadelphia
Semiconductor index .SOX tumbled 2.6%.
Investors are bracing for next week's Fed meeting in light
of recent market expectations that the U.S. central bank could
cut interest rates as much as three times this year.
Some strategists say stocks are primed for a selloff should
the Fed fail to take an even more dovish tilt. The S&P 500 index has so far gained 4.9% in June and
registered a second straight week of gains on Friday, largely on
the rate cut hopes.
"We're going to be on pins and needles until we get some
indication from the Fed," said Brian Battle, director of trading
at Performance Trust Capital Partners in Chicago.
"That's what matters. Everybody is betting that the Fed is
going to cut rates, probably not in June but soon. That is a
very crowded trade."
The ongoing trade battle between the United States and China
also gives investors reason to play it safe ahead of the
weekend.
"This is kind of a wait-and-see mode. People are staying
very close to their benchmarks," said Robert Phipps, a director
at Per Stirling Capital Management in Austin, Texas.
The Group of 20 summit at the end of the month may yield
progress on a deal.
The Dow Jones Industrial Average .DJI fell 17.16 points,
or 0.07%, to 26,089.61, the S&P 500 .SPX lost 4.66 points, or
0.16%, to 2,886.98 and the Nasdaq Composite .IXIC dropped
40.47 points, or 0.52%, to 7,796.66.
All three major indexes posted gains for the week: the Dow
rose 0.4%, the S&P 500 gained 0.5% and the Nasdaq added 0.7%.
During the session, shares of Apple Inc AAPL.O slipped
0.7%, with Broadcom a major supplier to the iPhone maker.
Adding to global demand worries, Chinese data pointed to the
worst slowdown in industrial growth in 17 years. China's
industrial output growth in May slowed below expectations and
showed signs of weakening demand. 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. Online pet products retailer Chewy Inc CHWY.N ended up 59%
in its market debut, joining a host of high-profile names, such
as Lyft Inc LYFT.O and Uber Technologies Inc UBER.N , that
listed on U.S. stock exchanges this year. Declining issues outnumbered advancing ones on the NYSE by a
1.53-to-1 ratio; on Nasdaq, a 1.79-to-1 ratio favored decliners.
The S&P 500 posted 37 new 52-week highs and 3 new lows; the
Nasdaq Composite recorded 47 new highs and 82 new lows.
Volume on U.S. exchanges was 5.85 billion shares, compared
to the 6.83 billion average for the full session over the last
20 trading days.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.