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
* Indexes: Dow up 0.1%, S&P flat, Nasdaq down 0.8%

(Updates to late afternoon)
By Caroline Valetkevitch
NEW YORK, June 14 (Reuters) - U.S. stocks were flat to lower
in late afternoon trading on Friday, though a warning from
Broadcom of a broad weakening in global demand weighed on
chipmakers.
Shares of Broadcom Inc AVGO.O fell 5.5% 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 0.85% and weighed
the most on the S&P 500 .SPX and the Nasdaq .IXIC . Broadcom
is a major supplier to the iPhone maker.
Losses in chip companies, who both source product and sell
heavily in China, dropped sharply. The Philadelphia
Semiconductor index .SOX tumbled 2.60%.
Adding to China 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. A Federal Reserve meeting next week may provide the test of
market expectations that the U.S. central bank could cut
interest 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.
"The key is going to be any progress with China ... There
might be other headlines, but the bottom line is that's what's
going to move the market materially. Otherwise, you're going to
get this drifting up and back down," said Alan Lancz, president
of Alan B. Lancz & Associates Inc. investment advisory firm
based 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 to
2,891.64 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 take
an even more dovish tilt after policymakers raised expectations
for a rate cut in recent weeks. The S&P 500 index has so far gained 4.9% in June and was on
track to record a second straight week of gains on hopes the Fed
will soon cut rates.
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 rose 55% 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 advancing ones on the NYSE by a
1.43-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.