Stocks Fall Slightly on Broadcom Weakness



Stocks fell on Friday after a sharp decline in Broadcom shares put other chipmakers and the broader tech sector under pressure.

The Dow Jones Industrial Average climbed to within 17.16 points of breakeven to close a dismal day at 26,089.61.

The S&P 500 was down 4.66 points at 2,886.98, as the tech sector dropped 0.8%.

The NASDAQ Composite sank 40.47 points to 7,796.66.

The major U.S. stock indexes posted solid gains in the previous session, adding to this month’s sharp rally. The Dow, S&P 500 and NASDAQ are all up more than 4% for June through Friday’s close. The major indexes also posted back-to-back weekly gains.

Chipmakers fell broadly after weak quarterly results from Broadcom, which ditched 5%. The chipmaker posted weaker-than-expected revenue for the previous quarter and cut its guidance for 2019, citing “broad-based ” demand weakness and the U.S. crackdown on Huawei.

Other semiconductor stocks also fell. Micron Technology, Advanced Micro Technology and Applied Materials all traded down at least 1% lower. Dow member Intel dropped 1.1%.

Economically speaking, the U.S. Commerce Department reported that retail sales rose 0.5% in May, below the 0.6% gain expected by economists. However, April retail sales were revised higher. May sales were also up 0.5% when excluding auto, gas building materials and food.

Overseas, industrial production in China rose 5% last month on a year-over-year basis, the slowest pace of growth in 17 years.

Prices for the benchmark 10-year U.S. Treasury gained a bit, lowering yields to 2.08% from Thursday’s 2.10%. Treasury prices and yields move in opposite directions.

Oil prices advanced 25 cents to $52.53 U.S. a barrel.

Gold prices gained a dollar at $1,344.70 U.S. an ounce.