US stock futures point lower on weak Chinese data, chip shares

U.S. equity futures are trading lower this morning after Chinese industrial output for May came in below expectations.

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Semiconductor stocks are falling premarket after Broadcom lowered its full-year revenue guidance, saying U.S.-China trade tensions and export restrictions on Huawei were hurting demand for chips.

Dow Jones futures were lower by 0.2 percent, S&P 500 futures slipped  0.3 percent and Nasdaq futures were off by  0.8 percent.

Chinese industrial production was up 5.5 percent year over year, the slowest pace of growth in 17 years, and another sign that trade tensions are hurting growth.

U.S. President Donald Trump said on Tuesday that he was holding up a trade deal with China and had  no interest in moving ahead unless Beijing agrees again to four or five “major points” that Trump did not specify.

Ticker Security Last Change %Chg
AVGO BROADCOM LIMITED 281.61 +1.88 +0.67%
AAPL APPLE INC. 194.15 -0.04 -0.02%
INTC INTEL CORPORATION 46.70 +0.38 +0.82%

Broadcom Inc. expects yearly sales to fall by $2 billion as uncertainty hangs over the chip industry after the Trump administration announced a ban on exports to Chinese telecom behemoth Huawei Tech.

Shares of Apple are also falling premarket, along with chip and chip-related stocks on the Broadcom warning. Apple and Intel are the worst-performing Dow stocks in early trading, poised to shave off a combined 32 points at the open:

Oil prices fell on Friday on fears trade disputes will dent global oil demand, although the attacks this week on two oil tankers in the Gulf of Oman gave prices a floor.

Brent crude futures were down 14 cents at $61.17 a barrel at 0846 GMT, having settled up 2.2 percent on Thursday.

U.S. West Texas Intermediate crude futures were down 28 cents at $52 a barrel. WTI also closed up 2.2 percent in the previous session.

Both contracts were on track for weekly declines of more than 3 percent.

A third of all oil traded by sea passes through the strait, which is the narrow mouth of the Persian Gulf.

In Asia on Friday, China’s Shanghai Composite finished the day down 1 percent. Hong Kong’s Hang Seng dropped 0.7 percent and Japan’s Nikkei ended the day 0.1 percent higher.

In Europe, Britain’s FTSE 100 was lower by 0.7 percent,  France’s CAC 40 was off by 0.6 percent and Germany’s DAX fell 1 percent.

Ticker Security Last Change %Chg
I:DJI DOW JONES AVERAGES 26106.77 +101.94 +0.39%
SP500 S&P 500 2891.64 +11.80 +0.41%
I:COMP NASDAQ COMPOSITE INDEX 7837.130031 +44.41 +0.57%

Rising energy company shares boosted major averages Thursday, giving the S&P 500 its first gain in three days, after two oil tankers near the strategic Strait of Hormuz were attacked.

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All three major averages — the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite — are on pace for their second straight week of gains.

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