US close: Stocks finish lower despite rise in factory orders

US stocks fell on Tuesday, as investors remained cautious ahead of a number of key reports to be released later this week.

The Dow Jones Industrial Average lost 0.27% to 17,551 points fter opening the day higher, while the S&P 500 and the Nasdaq 0.24% and 0.18% respectively.

”The Dow has been in decline since May, and now that the US reporting season is coming to an end, and the Fed’s meeting is on traders’ minds, the downward trend is here to stay,” said IG’s analyst David Madden.

“Dealers are very much divided over the possibility of an interest rate hike next month, but those who don’t foresee a rate increase can’t be convinced to buy into the market.”

In economic news, orders for goods produced in US factories climbed 1.8% in June, the Commerce Department said Tuesday.
The reading was in line with expectation following a downward revised 1.1% decline in May

Elsewhere, most indices in Asia continued to fall, although the Shanghai Composite Index jumped 3.7% on news of a regulatory clampdown on short-selling to curb volatility.

European stocks fell, breaking a five-session winning streak, with oil and gas stocks leading the decline as investors sifted through a raft of earnings reports.

The dollar rose 0.11% against the pound, gained 0.28% against the yen only and edged higher 0.55% against the euro, while gold futures climbed 0.21% to $1,09.08.

Oil prices staged a solid rebound after plunging on Monday, with West Texas Intermediate climbing 1.41% to $45.82 a barrel, while Brent gained 1.18% to $50.11 a barrel.

Among companies, office products supplier Office Depot fell 1.46% after climbing 0.63%, as its second quarter sales missed expectations.

The group added it plans to shut another 175 stores within the end of 2015, with an additional 60 to be closed in 2016.

Apple was down 3% after close on reports that the tech giant had lost its top place in China during the second quarter with domestic rivals Xiaomi and Huawei moving ahead in the rankings.

Oilseeds, corn and wheat processor Archer-Daniels Midland rose 1.49% after its second revenue and earnings both fell short of estimates.

Twitter edged 0.26% higher, despite opening at an all-time low after the social media giant closed at a record low of $29.27 on Monday night.

Toyota fell 2.5% despite posting a record first quarter profit fueled by a weak yen, although the group would have reported a decline in operating profit had it not been for the favourable currency impact.