Trade war fears, iPhone worries weigh on Wall Street

(Reuters) – U.S.
stock indexes dipped on Friday as fears over a trade war escalated ahead of the G7 summit in Canada and shares of Apple and its suppliers fell, following a report that the iPhone maker was planning to produce fewer phones this year. Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.
S., June 4, 2018.
REUTERS/Lucas JacksonApple Inc (AAPL.O) was down 1.
6 percent after a newspaper report said the company had asked its supply chain to manufacture aboutĀ 20 percent fewer components for iPhones in the latter half of 2018. Investors were also cautious ahead of a contentious G7 summit in Canada, with U.
S. President Donald Trump lashing out at Canada and the European Union on Friday, raising the specter of a trade war.
“I suspect that expectations from the G7 have been reduced,” said Eric Wiegand, senior portfolio manager at U.S.
Bank Private Wealth Management. “Expectations have been very modest that there will be much of a productive nature to these meetings, the tether of the meeting will most likely mirror the heightened trade tensions.
” Trade war fears have rattled the broader market through the year as Trump’s “America First” policies risk creating a schism between U.S.
and its trade partners. Despite these worries, the S&P 500 technology index .
SPLRCT has far outperformed the broader market and went on a six-day rally before taking a pause on Thursday and Friday. After touching record highs in the week, the tech-heavy Nasdaq Composite index .
IXIC also fell on Friday, with investors moving money from technology and small caps to the Dow and S&P. “The technology sector has demonstrated tremendous leadership in the year to date, and longer, so it is not surprising to see them pause,” Wiegand added.
At 11:23 a.m.
ET, the Dow Jones industrial average .DJI was down 6.
89 points, or 0.03 percent, at 25,234.
52, the S&P 500 .SPX was down 1.
91 points, or 0.07 percent, at 2,768.
46 and the Nasdaq Composite .IXIC was down 11.
52 points, or 0.15 percent, at 7,623.
56. Investors are eyeing next week’s U.
S. Federal Reserve meeting on interest rates and an unprecedented U.
S.-North Korea summit scheduled for June 12 in Singapore.
While the Fed is widely expected to raise interest rates for the second time this year, the focus is on whether it will hint at rates being raised a total of four times in 2018. U.
S. chipmakers Qualcomm (QCOM.
O), Intel (INTC.O) and Broadcom (AVGO.
O) were also lower, following the Apple report. Verizon (VZ.
N) was nearly a percent lower after the company named chief technology officer and former Ericsson boss Hans Vestberg as its new chief executive officer on Friday, Philip Morris (PM.N) shares rose 2 percent after boosting quarterly dividend by 6.
5 percent to $1.14 a share.
Declining issues outnumbered advancers for a 1.02-to-1 ratio on the NYSE and for a 1.
06-to-1 ratio on the Nasdaq. .

 

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