The Dow Jones Industrial Average (DJINDICES:^DJI) had surged 26 points as of 11:45 a.m. EDT Monday. Intel (NASDAQ:INTC) was underperforming its index on Monday, while fellow tech stock Apple (NASDAQ:AAPL) also declined. In contrast, shares of Broadcom (UNKNOWN:BRCM.DL) surged to the upside.
Perhaps helping to fuel the Dow Jones' mild decline on Monday, the Institute for Supply Management's manufacturing purchasing managers' index, a measure of the strength of the U.S. manufacturing sector, came in at 53.2, less than the 55.5 estimate.
That suggests the U.S. manufacturing sector is doing worse than economists anticipated, although the reading -- being above 50 -- indicates that the segment overall is still expanding.
Intel leads Dow Jones lower
Chipmaker Intel declined by 0.3%. There wasn't much news to explain Intel's drop but the company did announce a new initiative on Monday.
Intel has created a new division called Intel In-Vehicle Solutions that will work to create low-cost processors for next-generation cars, particularly self-driving cars. This move into a new market should benefit Intel, though it isn't surprising that it isn't having much effect on the stock, as self-driving cars still appear to be many years away from market.
Apple falls ahead of WWDC
Apple shares declined 0.5% early on Monday even as the company is just hours away from its annual Worldwide Developers Conference. Apple will kick off the conference at 1 p.m. EDT; it is expected to unveil a number of changes to its operating systems and possibly to show some new hardware.
Apple may unveil updates to both OSX and iOS, and introduce some new apps, perhaps a Healthbook app aimed at tracking an iPhone-owner's biometrics. Apple could also unveil a new version of the MacBook Air with an ultra-high definition screen and a rudimentary platform aimed at getting an edge on the emerging smart home market.
Investors should expect volatility in Apple stock this afternoon. If the company unveils a radical new product, shares could surge to the upside, while a disappointing presentation mum on new products could amplify Apple's sell-off.
Broadcom mulls unit sale
Broadcom shares gained more than 9% early on Monday after the company said it would explore strategic alternatives for its cellular baseband business. The company has hired bankers to assist it, and could look to sell the unit or just wind it down. Broadcom believes getting rid of the business would result in substantial savings.
In addition to revealing its plans for that unit, Broadcom also updated its guidance, reporting that earnings per share for the current quarter were likely to come in at the high end of its guidance range.
Both announcements appear quite positive for Broadcom shareholders, making its gain this morning far from surprising.
Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple and Intel. The Motley Fool owns shares of Apple and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.