Stocks end lower as 2-day Fed meeting kicks off
Stocks ended lower Tuesday as investors awaited a Federal Reserve decision Wednesday on interest rates and Apple's earnings report after the closing bell.
Disappointing economic data on manufacturing and consumer confidence also weighed on markets.
The Nasdaq composite slid a scant 0.1%, with the Dow Jones industrial average and S&P 500 closing down 0.2% and 0.3% respectively.
Energy stocks led the decliners as oil prices fell. A barrel of U.S. crude was down 2.2% to $43.03.
Investors are in wait-and-see mode as the Fed kicks off a two-day meeting Tuesday which could shed light on whether the nation's central bank will hike interest rates this year for the first time in nearly 10 years.
Wall Street is not expecting a hike at this meeting, but will be looking for clues as to whether the Fed will pull the trigger at its last meeting of the year in December. Short-term rates, currently pegged near zero percent, have been a key propellant for the stock market since the bull market began in March 2009.
Money managers were also digesting a tentative two-year budget deal on Capitol Hill that would boost the debt ceiling and fund the government for two years, a move that would avert a government shutdown.
Wall Street pros will also be closely watching the profit report from iPhone and iPad maker Apple (AAPL) after today's closing bell. The world's most-valuable company has seen its stock gains trail other big tech names, such as search-giant Google parent Alphabet (GOOGL) and online retail giant Amazon.com (AMZN).
Earnings for the S&P 500 are tracking at a negative growth rate of 2.8%, which would mark the first quarter of profit growth contraction since 2009. Still seven out of 10 companies that have reported results have topped expectations, according to Thomson Reuters.
In economic news:
Orders for durable goods dropped 1.2% in September and August orders were revised downward to a 3% decline. Orders for long-lasting manufactured goods have fallen in four of the past six months.
Consumer confidence took a tumble in October as Americans grew more worries about the job market following a series of disappointing jobs reports. The Conference Board reported its consumer confidence index fell to 97.6 in October from 102.6 in September.
Stocks moved up sharply last week on news of more central bank intervention around the globe. China's central bank last week cut interest rates for the sixth time in about a year and the European Central Bank hinted that it might provide more market stimulus later this year to offset a slowdown due to weakness in China and emerging markets.
Before the opening bell Tuesday China's online behemoth Alibaba (BABA) posted better-than-expected earnings, sending shares up more than 3%.
Stocks closed mixed in Asia overnight. Japan's Nikkei 225 fell 0.9%. Hong Kong's Hang Seng index rose 0.1% and mainland China's Shanghai composite gained 0.1% after suffering steep losses earlier in the trading session.
Shares were trading lower in Europe, with Germany's DAX down 1% and the CAC 40 in Paris down 1%.
Adam Shell on Twitter: @adamshell.