Wall Street ends down; Broadcom warning hits chip stocks
By Caroline Valetkevitch NEW YORK (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 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
By Caroline Valetkevitch
NEW YORK (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 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.
Other chip companies, which both source product and sell heavily in China, dropped sharply. The Philadelphia Semiconductor index 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 fell 17.16 points, or 0.07%, to 26,089.61, the S&P 500 lost 4.66 points, or 0.16%, to 2,886.98 and the Nasdaq Composite 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 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 ended up 59% in its market debut, joining a host of high-profile names, such as Lyft Inc and Uber Technologies Inc, 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 favoured 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.
(Additional reporting by Sinead Carew; Editing by Arun Koyyur, James Dalgleish and Sonya Hepinstall)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut
By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.
By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son