US close: Stocks fall after weak earnings, before Fed's rate decision

US stocks finished lower on Monday as investors weighed weak corporate earnings and awaited the Federal Reserve's interest rate decision later in the week.

The Dow Jones Industrial Average shed 0.15%, the S&P 500 fell 0.18% and the Nasdaq lost 0.21%.

Shares in Xerox plunged after the company reported a 85% drop in first quarter profit, reflecting higher restructuring charges. The group also issued downbeat guidance for the current quarter and lowered its bottom line outlook for the year.

KKR & Co. slumped after posting a first quarter loss that was worse than analysts’ had anticipated.

Halliburton was scheduled to post first quarter interims but has delayed its release until next month.

Technology giant Apple is slated to release its results on Tuesday.

Another event high on the agenda this week is the Fed's policy announcement on Wednesday. The central bank is expected to keep interest rates unchanged but the market will be looking for clues on the timing of the first hike.

“We could be in for another rocky week in the markets with particular focus back on the central banks as we get the latest monetary policy decisions from the Federal Reserve and Bank of Japan, the latter of which is expected to announce new stimulus measures,” said Oanda’s Craig Erlam.

He expects two rates hike from the Fed this year. “What the markets are looking for though is an idea of when we can expect them, with the June and December meetings looking the most likely.”

Societe Generale said: “It feels very much like it did back in October 2015, when the Fed started to hint at the possibility of rate hikes at the December meeting, but with one key difference – the probability of rate hikes priced in the fed funds market then was significantly higher than what is currently priced in the market.

“Back in October, the market was pricing in a probability of three hikes in 2016, and now we are pricing in just one hike by end-2017.”

The Bank of Japan is also due to make a policy announcement on Thursday.

Meanwhile, oil prices declined as investors took profits after an earlier rally. West Texas Intermediate crude fell 2.26% to $42.76 per barrel and Brent crude dropped 1.18% to $44.58 per barrel at 2038 BST.

Amid lower oil prices Saudi Arabia has approved economic reforms aimed at moving the country away from its dependence on the commodity for profits. The plan includes selling shares in state-owned Aramco to create a sovereign wealth fund. Oil accounts for nearly 80% of Saudi’s revenue but the slide in prices over the past year has hit the nation’s economy.

In currencies, the dollar declined 0.48% against the pound, fell 0.35% against the euro and slipped 0.56% versus the yen.

S&P 500 - Risers
Time Warner Cable Inc. (TWC) $209.63 +4.06%
Seagate Technology Plc (STX) $26.29 +3.83%
Kroger Co. (KR) $36.77 +3.34%
Laboratory Corporation of America Holdings (LH) $125.10 +2.73%
Amer Water Works (AWK) $70.80 +2.25%
ProLogis (PLD) $45.79 +1.98%
FLIR Systems Inc. (FLIR) $33.92 +1.83%
McCormick & Co. (MKC) $93.29 +1.67%
Royal Caribbean Cr (RCL) $75.00 +1.63%
Tyson Foods Inc. (TSN) $64.08 +1.60%

S&P 500 - Fallers
Perrigo Company plc (PRGO) $99.40 -18.09%
Xerox Corp. (XRX) $9.68 -13.34%
Endo International Plc (ENDP) $30.04 -11.60%
Mylan Inc. (MYL) $45.02 -6.77%
United States Steel Corp. (X) $18.25 -6.70%
Wynn Resorts Ltd. (WYNN) $90.94 -5.27%
Transocean Ltd. (RIG) $10.26 -4.91%
Cabot Oil & Gas Corp. (COG) $22.29 -4.17%
Marathon Oil Corp. (MRO) $13.83 -3.56%
Devon Energy Corp. (DVN) $33.95 -3.55%

Dow Jones I.A - Risers
McDonald's Corp. (MCD) $127.46 +1.56%
Wal-Mart Stores Inc. (WMT) $69.47 +1.09%
Walt Disney Co. (DIS) $104.57 +0.77%
Microsoft Corp. (MSFT) $52.11 +0.64%
Procter & Gamble Co. (PG) $81.41 +0.57%
Verizon Communications Inc. (VZ) $50.76 +0.42%
Coca-Cola Co. (KO) $44.71 +0.38%
Cisco Systems Inc. (CSCO) $28.23 +0.28%
International Business Machines Corp. (IBM) $148.81 +0.21%
Johnson & Johnson (JNJ) $113.51 +0.17%

Dow Jones I.A - Fallers
Caterpillar Inc. (CAT) $76.79 -1.95%
Visa Inc. (V) $78.14 -1.23%
Goldman Sachs Group Inc. (GS) $165.09 -1.00%
Merck & Co. Inc. (MRK) $56.22 -0.92%
Intel Corp. (INTC) $31.39 -0.79%
JP Morgan Chase & Co. (JPM) $63.60 -0.58%
Apple Inc. (AAPL) $105.08 -0.57%
Chevron Corp. (CVX) $101.51 -0.49%
United Technologies Corp. (UTX) $105.20 -0.47%
Travelers Company Inc. (TRV) $110.34 -0.45%

Nasdaq 100 - Risers
Charter Communications Inc. (CHTR) $207.01 +4.60%
Seagate Technology Plc (STX) $26.29 +3.83%
Dish Network Corp. (DISH) $51.26 +3.01%
T-Mobile Us, Inc. (TMUS) $41.18 +2.39%
Check Point Software Technologies Ltd. (CHKP) $84.34 +1.70%
Monster Beverage Corp (MNST) $124.92 +1.57%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $49.31 +1.34%
NetApp Inc. (NTAP) $24.52 +1.16%
Adobe Systems Inc. (ADBE) $95.80 +1.07%
Costco Wholesale Corp. (COST) $151.51 +1.06%

Nasdaq 100 - Fallers
Endo International Plc (ENDP) $30.04 -11.60%
Mylan Inc. (MYL) $45.02 -6.77%
Biomarin Pharmaceutical Inc. (BMRN) $90.22 -3.82%
American Airlines Group (AAL) $37.00 -3.17%
JD.com, Inc. (JD) $27.43 -3.07%
Discovery Communications Inc. Class A (DISCA) $27.93 -3.02%
Netflix Inc. (NFLX) $93.56 -2.44%
Ctrip.Com International Ltd. Ads (CTRP) $46.02 -2.33%
Discovery Communications Inc. Class C (DISCK) $27.40 -1.97%
Bed Bath & Beyond Inc. (BBBY) $48.21 -1.89%