Investors eye China/jobs ; Semiconductor megamerger; Visa's FIFA threat

The big Wall Street gains that pushed the Nasdaq (^IXIC) to a record yesterday appear to be fizzling out today. Stocks (^GSPC) are lower in early trading as investors ponder the potential impact of China's Shanghai Index (000001.SS) falling 6.5% and a weaker-than-expected report on initial jobless claims.

Yahoo Finance Senior Columnist Michael Santoli says the 282,000 weekly unemployment claims--a five-week high--bucks the positive trend in the data lately.

"We've actually seen some backup in this number a little bit off historic low levels," he notes. "So modestly  slow-type economic news, at least for the labor market.  We'll see how the market absorbs that."

But Santoli doesn't think what happened in China today will have too much of an effect, pointing out that despite today's drop, Chinese stocks have been on an almost-impossible-to-believe tear.

"It's kind of operating in its own galaxy over there," he laughs. "We have not really been dragged up by the huge boom in Chinese stocks, so I don't know why U.S. markets would take this particularly badly."

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Megamerger in the semiconductor industry

Here’s a look at some of the stocks the Yahoo Finance team will be watching for you today.

Broadcom (BRCM) shares are on the move in early trading. The semiconductor maker is being bought by Singapore-based rival Avago Technologies for $37 billion in cash and stock. This is just the latest deal to hit the industry as chip manufacturers struggle to grow amid rising production and design costs.  Shares of Avago (AVGO) are higher on the news. Shares of both companies rose sharply on Wednesday on reports a deal was imminent.

Abercrombie & Fitch (ANF) shares are higher this morning even though the teen retailer reported a wider-than-expected loss in its first quarter and revenue also missed estimates.  The company, which is in the midst of turnaround, saw sales fall about 14% from a year earlier. The stronger dollar, weak demand and heavy discounts are among the factors being cited for the shortfall.  However, Abercrombie said it expects sales trends improve throughout the year.

Related: Abercrombie & Fitch jumps; Costco falls; Broadcom & Avago merge

Costco (COST) shares are lower in early trading. The warehouse-club chain reported earnings per share that beat by a penny.  However, revenue slightly missed estimates as same-store sales disappointed amid lower gas prices and a stronger dollar.

Google (GOOGL) shares also on investors’ radar.  The company is getting ready to kick off its annual two-day developer conference today. It's widely expected that Google will unveil a spruced up Android operating system, which may include a platform for the Internet of Things and mobile payments.

Amazon.com (AMZN) is grabbing headlines this morning as well. The online retail giant is now offering Prime members free same-day delivery in 14 cities.  Orders of $35 dollars or more placed before noon will be delivered by 9 p.m. that day.

Visa warning for FIFA

Visa (V) is threatening to end its sponsorship deal with FIFA. This comes as U.S. and Swiss authorities investigate alleged corruption in soccer’s world governing body. Visa calling on FIFA to make big changes in its operations. Other sponsors, including Adidas, Coca-Cola (KO) and McDonald's (MCD) say they are monitoring the situation.

Jawbone is suing rival fitness tracking device maker Fitbit for poaching employees and stealing its trade secrets. Fitbit denies Jawbone’s charges. This lawsuit comes as Fitbit prepares for an IPO.