Stocks are sliding

Stocks are trading lower on Thursday morning after a strong finish in the previous session that took the Nasdaq to an all-time closing high.

Near 10:40 a.m. ET, the Dow was down 82 points, the S&P 500 was down 8 points, and the Nasdaq was down 19 points.

Over in China, the Shanghai Composite closed down 6.5%, the biggest drop since January.

Stocks gained some momentum after data showed that pending home sales rose to a nine-year high in April. The index rose 3.4% month-over-month to 112.4, the highest level since May 2006, and it jumped 13.4% year-over-year, beating economists’ forecasts.

Before that, we got news of the largest ever merger among chip makers: Avago Technologies is acquiring Broadcom for $US37 billion in a cash and stock deal.

Broadcom is one of the world’s largest semiconductor companies and its clients include Samsung, Apple, and Amazon. Avago, based in California and Singapore, has made at least three acquisitions in the past 13 months.

West Texas Intermediate crude oil fell to a four-week low ahead of the Energy Information Administration’s weekly update on US inventories at 11:00 a.m. ET.

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