US close: Stocks end lower ahead of Fed meeting
US equities faltered on Tuesday, as data revealed that the manufacturing sector grew steadily ahead of the Federal Reserve’s meeting on Wednesday, when the central bank is expected to stand pat on interest rates.
The Dow Jones Industrial Average fell 0.58% to 18,037.10 points, the S&P 500 declined 0.68% to 2,111.72 points and the Nasdaq 100 was also down 0.72% to 4,766.94 points.
Oil prices fell again after rebounding earlier in the session, from a 4% decline on Monday due to doubts over OPEC’s planned production cut to ease supply.
Brent crude was last down 1.48% to $47.90 per barrel and West Texas Intermediate crude lost 1.04% to $46.38 per barrel.
Philip Marey, senior US strategist at Rabobank, said: “Hiking only a week before the elections seems unlikely, therefore a December hike remains our baseline scenario.
"However, the decision to hike may not be unanimous, which could have a perverse effect on yield levels, especially at the longer end of the curve.”
The country’s manufacturing sector grew in October as the Institute of Supply Management’s index rose to 51.9 from 51.5 in September, above the 50 level that indicates an expansion. This was above analyst forecasts of 51.7.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said: “After a decidedly mixed bag of regional reports, this is a decent result, confirming that the August drop in the index was a one-time fluke rather than the start of a weakening trend.
"Admittedly, the key new orders index dipped by three points to 52.1, and that will make it harder to keep the headline at its current level over the next few months, but strong import demand from China should prevent any further dip in orders, they seem more likely to rebound.”
In contrast US construction spending unexpectedly declined in September as it fell 0.4% to a seasonally-adjusted $1.15bn, missing economists’ expectations for a 0.5% increase.
On the year, construction spending was 0.2% lower.
Meanwhile, economic data from China was better-than-expected and sent Asian shares higher earlier.
The manufacturing purchasing managers’ index increased to 51.2 in October from 50.4 the month before, which was the highest level since July 2014, as the Caixin manufacturing PMI edged up to 51.2 from 50.1.
In corporate news, US shares in Royal Dutch Shell rose 4.74% as the oil behemoth exceeded expectations for third quarter earnings, but cautioned against an uncertain outlook due to weak oil prices.
Car maker Fiat Chrysler’s shares were down 1.09%, reversing earlier gains as it reported a 10% fall in sales year-on-year in October, although this was countered with strong truck sales.
Pfizer’s shares fell 2.21% as the pharmaceutical giant said its adjusted earnings per share for the third quarter just missed analyst’s expectations and cut 4% of its forecast for the year.
Dow Jones - Risers
Chevron Corp. (CVX) $106.48 1.65%
Merck & Co. Inc. (MRK) $59.30 0.99%
Exxon Mobil Corp. (XOM) $83.65 0.40%
Procter & Gamble Co. (PG) $86.85 0.06%
Boeing Co. (BA) $142.41 -0.01%
Goldman Sachs Group Inc. (GS) $178.06 -0.10%
United Technologies Corp. (UTX) $102.01 -0.19%
Microsoft Corp. (MSFT) $59.80 -0.20%
American Express Co. (AXP) $66.25 -0.26%
McDonald's Corp. (MCD) $112.25 -0.28%
Dow Jones - Fallers
Pfizer Inc. (PFE) $31.07 -2.02%
Apple Inc. (AAPL) $111.49 -1.81%
Travelers Company Inc. (TRV) $106.24 -1.79%
Home Depot Inc. (HD) $119.89 -1.74%
Caterpillar Inc. (CAT) $82.24 -1.46%
Unitedhealth Group Inc. (UNH) $139.43 -1.34%
Nike Inc. (NKE) $49.62 -1.12%
Visa Inc. (V) $81.62 -1.08%
Wal-Mart Stores Inc. (WMT) $69.30 -1.03%
Intel Corp. (INTC) $34.52 -1.00%
S&P 500 - Risers
Archer-Daniels-Midland Co. (ADM) $46.75 7.30%
Martin Marietta Mtrl (MLM) $192.88 4.05%
Fidelity National Information Services Inc. (FIS) $76.85 3.96%
Harris Corp. (HRS) $92.73 3.95%
Wynn Resorts Ltd. (WYNN) $98.23 3.89%
CF Industries Holdings Inc. (CF) $24.89 3.67%
Mosaic Company (MOS) $24.32 3.36%
Tractor Supply Company (TSCO) $64.46 2.92%
Patterson Companies Inc. (PDCO) $43.94 2.88%
Vertex Pharmaceuticals Inc. (VRTX) $77.88 2.66%
S&P 500 - Fallers
Yum! Brands Inc. (YUM) $60.69 -29.66%
Alcoa Corporation (AA) $23.00 -19.92%
Pitney Bowes Inc. (PBI) $14.54 -18.50%
HCP Inc. (HCP) $30.47 -11.04%
L Brands Inc (LB) $66.50 -7.88%
Southwestern Energy Co. (SWN) $9.69 -6.74%
CenturyLink Inc. (CTL) $24.97 -6.06%
Occidental Petroleum Corp. (OXY) $69.00 -5.36%
Eaton Corporation plc (ETN) $60.70 -4.81%
Cummins Inc. (CMI) $122.29 -4.33%
Nasdaq 100 - Risers
Incyte Corp. (INCY) $90.03 3.52%
Tractor Supply Company (TSCO) $64.46 2.92%
Biomarin Pharmaceutical Inc. (BMRN) $82.71 2.72%
Vertex Pharmaceuticals Inc. (VRTX) $77.88 2.66%
Illumina Inc. (ILMN) $139.50 2.47%
Celgene Corp. (CELG) $104.09 1.87%
Mylan Inc. (MYL) $37.16 1.81%
Whole Foods Market Inc. (WFM) $28.66 1.31%
Biogen Inc (BIIB) $282.56 0.85%
Symantec Corp. (SYMC) $25.22 0.76%
Nasdaq 100 - Fallers
Tesla Motors Inc (TSLA) $190.79 -3.51%
Autodesk Inc. (ADSK) $70.10 -3.02%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $37.70 -3.01%
Nvidia Corp. (NVDA) $69.05 -2.97%
Stericycle Inc. (SRCL) $77.87 -2.77%
NetApp Inc. (NTAP) $33.09 -2.50%
JD.com, Inc. (JD) $25.31 -2.47%
Viacom Inc. Class B (VIAB) $36.68 -2.34%
Dish Network Corp. (DISH) $57.19 -2.34%
Liberty Media Corporation - Class A (LMCA) $27.22 -2.19%