By Chris Matthews and Mark DeCambre, MarketWatch

Apple, Intel's stocks set to weigh on the Dow

U.S. stocks retreated Monday morning as souring U.S.-China trade relations continued to weigh on sentiment throughout global markets.

How are major benchmarks faring?

The Dow Jones Industrial Average fell 100 points, or 0.4%, to 25,673, those for the S&P 500 index declined 16 points, or 0.6%, at 2,844, while the Nasdaq Composite Index retreated 101 points at 7,710, a fall of 1.3%.

On Friday (http://www.marketwatch.com/story/stock-index-futures-point-lower-putting-rebound-in-danger-after-china-casts-doubt-on-further-trade-talks-2019-05-17), the Dow slid 98.68 points, or 0.4%, to 25,764 and the S&P 500 index lost 16.79 points, or 0.6%, to 2,859.53. The Nasdaq Composite Index declined 81.76 points, or 1%, to 7,816.28.

The Dow shed 0.7% for the week, bringing its weekly losing streak to four, the longest since May 2016. The S&P 500 fell 0.8% on the week while the Nasdaq dropped 1.3%.

What's driving the market?

Sino-American trade tensions continued to face apparent escalation, with shares of chip makers taking it on the chin as U.S. technology companies have begun to comply with the White House's ban on China's Huawei Technologies Inc.

Bloomberg News reported Sunday that Xilinx (XLNX)(XLNX) and other U.S. chip makers, including Intel Corp(INTC), Qualcomm Corp. (QCOM) and Broadcom Inc. (AVGO) have frozen the supply of critical software and hardware components to Huawei. The Wall Street Journal reported separately (https://www.wsj.com/articles/google-cuts-off-huawei-from-some-smartphone-services-11558342295?mod=hp_lead_pos1) that Alphabet Inc.'s (GOOGL) Google will cease selling some services for devices made buy Huawei, which relies on Google's Android software to run its smartphones.

Meanwhile, chances of further trade talks between the U.S. and China appeared to take a hit over the weekend, after CNBC reported (https://www.cnbc.com/2019/05/17/us-china-trade-talks-have-stalled-sources.html) that scheduling for the next round of negotiations is "in flux," because neither side appears willing to agree to concessions that would further progress. The South China Morning Post also cited several China-based analysts who argued that China has little incentive (https://www.scmp.com/news/china/diplomacy/article/3010793/china-no-rush-another-trade-war-talks-trip-us-treasury) to engage in further talks until U.S. negotiators show willingness to compromise.

What are strategists saying?

"Market volatility continues to stem from announcements and interpretations of what is going on in trade disputes between the US and its trading partners, but principally China," wrote Jasper Lawler, head of research at London Capital Group, in a daily research note.

Which stocks are in focus?

Shares of Sprint Corp. (S) were rallying 26% after Federal Communications Chairman Ajit Pai issued a statement Monday endorsing its planned merger with T-Mobile US Inc. (TMUS), after the companies told the commission that the companies "would take a series of significant steps if the companies' merger application is approved," including committing to build out a new 5G telecom that would cover 90% of rural America within 6 years.

Tesla Inc. (TSLA) stock was under pressure before the start of trade Monday, after analyst Dan Ives at Wedbush slashed his price target (http://www.marketwatch.com/story/teslas-stock-sinks-toward-multi-year-low-after-wedbush-slashed-price-target-again-2019-05-20), citing "major concerns" about the trajectory of the electric car maker's growth prospects. The stock was down 3.7% early Monday.

Dow component Intel Corp. (INTC) stock was down 1.2% early Monday, amid concerns over U.S.-China trade relations.

Shares of Apple Inc. (AAPL) were also dragging on the Dow, down 2.8% Monday morning.

Shares of money manager Legg Mason Inc. (LM) could be in focus after reports that it is nearing a settlement with Trian Fund Management LP that would give the activist investor 3 to 4 seats on the company's board.

Shares of Blue Apron Holdings Inc. (APRN) were in focus after the meal-kit preparation company said Monday it is pursing plans for a reverse stock split (http://www.marketwatch.com/story/blue-apron-is-pursuing-plans-for-a-reverse-stock-split-2019-05-20).

Ford Motor Co. (F) began a round of layoffs Monday that will ultimately result in the elimination of 7,000 salaried positions internationally, or about 10% of its salaries workforce. The auto maker's stock fell 0.3% early Monday.

Which data and Fed speakers are ahead?

The Federal Reserve Bank of Chicago's national activity index plunged to a negative 0.45 in April, down from an upwardly revised positive 0.05 in March and a negative 0.31 in February. A reading below zero indicates below-trend economic growth.

Atlanta Federal Reserve Bank President Raphael Bostic said Monday morning (http://www.marketwatch.com/story/atlanta-feds-bostic-says-hes-not-sure-the-direction-of-the-next-interest-rate-move-2019-05-20) that he wasn't sure whether the central bank would move next to raise or lower interest rates, while saying he expects growth of 2.25% to 2.5% this year, a slowdown from last year's levels.

Philadelphia Federal Reserve Bank President Patrick Harker gave a speech on "management science" at Boston University Monday morning.

New York Federal Reserve Bank President John Williams and Federal Reserve Vice Chair Richard Clarida will both participate in the "Fed Listens" roundtable discussion on monetary policy strategy and tools at 1 p.m.

Fed Chairman Jerome Powell will give a speech at the Atlanta Fed conference at 7 p.m.

How are other markets trading?

Stocks in Asia closed mostly lower on Monday, with Hong Kong's Hang Seng Index falling 0.6%, while China's Shanghai Composite Index and Shenzhen Composite index both lost ground on the day. Japan's Nikkei 225 , meanwhile rose 0.2%.

European stocks were also under pressure, with the Stoxx Europe 600 down 1.2%.

In commodities markets, the price of oil was on the rise, while gold was edging higher. The U.S. dollar edged lower against its peers.

(END) Dow Jones Newswires

May 20, 2019 09:47 ET (13:47 GMT)