US stocks open lower as Avago buys Broadcom

New York - US stocks opened lower on Thursday as Avago Technologies announced a $37bn deal to acquire fellow chipmaker Broadcom.

Five minutes into trade, the Dow Jones Industrial Average was at 18 100.99, down 62.00 points.

The broad-based S&P 500 dipped 0.13% to 2 120.62, while the tech-rich Nasdaq Composite Index dropped 0.08% to 5 102.31, retreating from Wednesday's record.

Trade has been volatile this week with strong gains Wednesday essentially reversing sharp losses in the prior session.

The combination of Avago and Broadcom will have a market value of $77bn and revenue of $15bn and create a leader in the surging market for mobile devices like smartphones and tablets.