Tech stocks pull Wall Street lower as investors weigh data, Middle East tensions

Developments in the Middle East remained in focus as transit through the Strait of Hormuz appeared to have come to a near standstill after two more ships were attacked and the U.S. said it could maintain a naval blockade of Iran indefinitely. The University of Michigan's preliminary consumer sentiment survey came in at 51 in August, below expectations of 54.5, according to economists polled by Reuters. Among other stocks, Workday WDAY.O slipped 3.8%. Reuters reported on Thursday that private equity firm Silver Lake was in talks to acquire the software firm. Shares of some drone makers gained after President Donald Trump said late on Thursday that he would impose tariffs on imports of drones and their components. Red Cat RCAT.O added 8% and Unusual Machines UMAC.A jumped 25.5%. Advancing issues outnumbered decliners by a 1.13-to-1 ratio on the NYSE and by a 1.13-to-1 ratio on the Nasdaq. The S&P 500 posted 12 new 52-week highs and one new low while the Nasdaq Composite recorded 68 new highs and 47 new lows. Tech stocks dragged Wall Street lower on Friday after propelling the S&P 500 to a record high in the previous session, while investors digested weaker-than-expected retail sales data and monitored developments in the Middle East. The S&P 500 information technology index .SPLRCT dropped 0.5%, with Broadcom AVGO.O taking the biggest jolt, down 5.5%. The declines weighed down the Nasdaq. Applied Materials AMAT.O fell 5.2%, even after the chip equipment maker forecast fourth-quarter revenue above Wall Street estimates. The Philadelphia SE Semiconductor index .SOX fell 1%. Data storage companies defied the broader decline, with SanDisk SNDK.O and Western Digital WDC.O advancing 5.7% and 1.4%, respectively. Energy stocks on the S&P 500 .SPNY rose 1.5%, tracking a rise in oil prices. Reddit RDDT.O surged more than 12% after the social media company was named a new addition to the S&P 500 index, effective August 18. Financial and healthcare stocks declined, pulling the Dow lower. Both the S&P 500 and the Nasdaq were on track for their third consecutive weekly gain, the longest winning streak since early April, as strong earnings and reduced bets on interest rate hikes after benign data lifted sentiment. The July retail sales reading came in weaker-than-expected, after an unrevised 0.2% gain in June, the Commerce Department's Census Bureau said. At 12:14 p.m. ET, the Dow Jones Industrial Average .DJI fell 122.05 points, or 0.23%, to 53,717.94, the S&P 500 .SPX lost 12.71 points, or 0.16%, to 7,786.28 and the Nasdaq Composite .IXIC lost 101.63 points, or 0.38%, to 26,701.40. "We will always have these slight disruptions when we have negative economic news, especially when investors are trying to figure out how the Fed will react to this kind of news," said Andersen. Rising energy prices linked to the conflict, along with limited guidance from Fed Chair Kevin Warsh, left investors scrutinizing economic data for clues on growth.

Tech stocks pull Wall Street lower as investors weigh data, Middle East tensions

Middle East tensions and stock movers

Wall Street slips as tech shares retreat

Retail sales and sentiment data disappoint

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