A slide in the chipmaking sector weighed on the Nasdaq after Broadcom (AVGO) cut its sales forecast, citing trade war concerns, though the S&P recouped nearly all its losses in afternoon trading, closing out with small loss on a daily basis but a roughly 0.5% weekly gain.
ECONOMIC EVENTS: In the U.S., the retail sales report beat estimates via revisions, with expected May gains of 0.5% both with and without autos. The industrial production report beat estimates with a surprising 0.4% May rise after offsetting revisions over the prior three months. Business inventories rose 0.5% in April, while sales fell 0.2%, as expected. The University of Michigan consumer sentiment reading eased back 2.1 ticks to 97.9 in the preliminary reading for June, giving back some of the 2.8 point bounce to 100.0 in May. In energy news, Baker Hughes reported that the U.S. rig count is down 6 rigs from last week to 969.
In China, data was mixed. Retail sales for May rose 8.6% year-over-year, which was up from April and better than the consensus growth forecast. However, industrial production growth fell short with a rise of 5% that missed consensus.
TOP NEWS: Shares of Broadcom fell 6% after the company reported lower than expected revenue for the second quarter and lowered its revenue guidance for fiscal 2019. Of note, Broadcom CEO Hock Tan said that the company anticipates a "broad-based slowdown in the demand environment."
Sony (SNE) shares were 3% higher in New York after activist investor Third Point confirmed a $1.5B investment in the Japanese conglomerate, saying in a letter to shareholders that Sony's valuation "does not reflect either the quality of the Company's businesses or the opportunity to create meaningful, long-term value through targeted capital allocation and further operational improvement." In the letter, the firm said that Sony should consider a spin-off of its semiconductors business into a standalone public stock to be listed in Japan and suggested that it consider positioning itself as a "leading global entertainment company."
In IPO news, online pet supplies retailer Chewy (CHWY) made its debut on the New York Stock Exchange today. The initial public offering was priced at $22 per share and opened at $36 per share. Shares finished their first day of trading at just about $35, representing a gain of 59% from their pricing.
Meanwhile, Dish (DISH) submitted a letter to the FCC summarizing a meeting it attended with representatives from the FCC and DOJ, during which the company said it discussed its opposition to the proposed merger of Sprint (S) and T-Mobile (TMUS) "as currently constructed." Following the disclosure, the New York Times reported that the DOJ is moving closer to approving the merger, provided that the companies sell multiple assets to create a new wireless competitor.
Additionally, shares of Maxar Technologies (MAXR) jumped 9% after Reuters reported that the company is exploring a sale of its space robotics business.
MAJOR MOVERS: Among the noteworthy gainers was ArQule (ARQL), which surged 30% after announcing preliminary results from the company's phase 1 dose escalation study for ARQ 531. Also higher was Bluegreen Vacations (BXG), which rose 31% after announcing that Bass Pro and its affiliates and the company have settled their prior disputes and have amended their marketing and promotions agreement to reinstate Bluegreen's access to Bass Pro's marketing channels.
Among the notable losers was Ashford Hospitality (AHT), which dropped 15% after cutting its dividend to 6c per share. Also lower was Duluth Holdings (DLTH), which fell 10% after DA Davidson analyst John Morris cut his price target on the stock to $15 from $19, saying the company's commentary indicates "weak trends" experienced so far in Q2.
INDEXES: The Dow fell 17.16, or 0.07%, to 26,089.61
, the Nasdaq lost 40.47, or 0.52%, to 7,796.66
, and the S&P 500 declined 4.66, or 0.16%, to 2,886.98