By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks ended Tuesday's choppy
trading session lower, as investors turned cautious after the
European Union and the President Barack Obama announced a new round
of sanctions against Russia for its role in Ukraine's deadly civil
war.
The European Union on Tuesday also extended sanction on Russia
over Eastern Ukraine violence. The expanded sanctions will target
the Russian energy, defense, and finance sectors.
Better-than-expected earnings and upbeat consumer confidence
data sent the Dow Jones Industrial Average above 17,000 and the
S&P 500 near its record closing level, but gains soon petered
out.
The S&P 500 (SPX) closed 9 points, or 0.5%, lower at
1,969.95. The Dow Jones Industrial Average (DJI) ended 70.48
points, or 0.4%, lower at 16,912. The Nasdaq Composite (RIXF)
finished 2.2 points lower at 4,442.70.
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action.
Anthony Valeri, investment strategist at LPL Financial said
investors are focused on GDP, ISM and the jobs data to be released
in the coming days.
"The FOMC statement is unlikely to change from the previous one
and there will be no press conference. If the economy continues to
improve, we expect companies to grow their revenues and earnings.
We also expect the market to continue a slow grind higher by the
year-end," Valeri said.
Tuesday's economic news had little impact on markets. Consumer
confidence index jumped unexpectedly to 90.9 in July, the highest
since October 2007.
Separately, a report from the Case-Shiller 20-city composite
index showed U.S. house prices rose in May, with every city showing
gains. Prices fell on a seasonally adjusted basis, however.
Year-over-year growth also slowed down.
Data released Monday showed pending U.S. homes sales fell 1.1%
in June, the first decline in four months. That report "confirmed
Fed Chair Yellen's remarks before the Senate Banking committee
earlier this month about the overall slowdown in the housing
sector," wrote Marshall Gittler, head of global FX strategy at
IronFX, on Tuesday.
Yellen will lead monetary policy makers in their two-day meeting
that started Tuesday morning.
In earnings news, Corning Inc. (GLW) shares tanked 9.3% after
the maker of TV-screen glass reported a sharp drop in
second-quarter earnings due to acquisition-related costs.
Shares in Herbalife Ltd. (HLF) fell 14%, extending losses from
late Monday when the nutritional supplements marketer posted
quarterly results that missed Wall Street's targets.
Shares of Merck & Co. (MRK) -- a component of the Dow Jones
Industrial Average (DJI) -- rose 1% after the drug maker's adjusted
earnings and sales surpassed expectations.
Shares of fellow Dow component Pfizer Inc. (PFE) fell 1.2%. The
pharmaceutical company's second-quarter results came in ahead of
Wall Street's targets, but it lowered its full-year sales
outlook.
Wynn Resorts Ltd. (WYNN) shares gained 3%, after earnings per
share beat analysts' expectations, but revenue fell short of
them.
Aetna (AET) fell 3.5% even as the health insurer raised its 2014
operating earnings projection based on improvement in
second-quarter results from the year-earlier period.
Logistics company United Parcel Service Inc. (UPS) dropped 3.7%
after missing forecasts and lowering its guidance.
After the regular session ends, Twitter Inc. (TWTR) is slated to
release second-quarter results.
In Asia, most major stock markets ended higher, with Japan's
Nikkei Average up 0.6%. In Europe, equities closed mostly higher,
with the Stoxx Europe 600 up 0.3%.
Oil prices (CLU4) turned slightly lower, while gold (GCU4)
settled lower. The U.S. dollar index (DXY), which measures the
greenback against a basket of six other currencies, rose to 81.215
from 81.025 on Monday.
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