US open: Equity markets move in tight ranges amid raft of mixed economic data and earnings reports

US stocks struggled for direction early on Tuesday, as investors digested a raft of economic reports and awaited quarterly earnings from Apple and Twitter.

Shortly after 1400 GMT, the Dow Jones Industrial Average was down 22 points to 17,601.17, while the S&P 500 and the Nasdaq were four points down and two points higher respectively.

Mixed economic data

On the economic data front, according to the Commerce Department, orders for long-lasting goods declined 1.2% in September compared with the 1.3% decline analysts had forecast but marking their second consecutive drop.

August's reading was revised downward to show a 3% drop compared with the initial figure showing a 2.3% decline.

"The details of the report suggest that equipment investment expanded only modestly in the third quarter and could be even softer in the fourth quarter," said Steve Murphy, US economist at Capital Economics.

"The strong dollar, weak global demand, and the contraction in the energy and manufacturing sectors are all weighing on demand for capital goods."

There was downbeat use on the consumer confidence front as well, as the index monitoring consumer sentiment declined from a downwardly revised 102.6 to 97.6 in October, compared with expectations for a 102.9 reading.

Elsewhere, the S&P/Case-Shiller 20-City Home Price Index was in line with expectations in August, showing house prices rose 0.1% month-on-month and 5.1% year-on-year.

Meanwhile, the Markit 'flash' US services purchasing managers index fell to 54.4 in October from 55.1 in September, although it remained comfortably above the 50 threshold indicating growth.

Earnings in focus

Among the companies that reported quarterly earnings before the opening bell, Alibaba surged 6.23% after the Chinese e-commerce giant posted better-than-expected quarterly revenue.

Biopharmaceutical giant Pfizer rose 3.22% after its results beat Wall Street's estimates and the firm raised its full-year outlook, even though revenue and earnings both declined on the back of some adverse currency movement.

Going the other way, tobacco group Reynolds American tumbled 3.37% despite posting better-than-expected quarterly revenue, while profit was in line with estimates.

Ford Motor fell 4.72% after the car-maker's quarterly operating profit increased, although operating earnings slightly missed expectations, while JetBlue Airways slumped 7.48% even though its third quarter revenue rose in line with consensus.

Printing technology provider Lexmark declined 5.15% after swinging to a loss and cutting its full-year outlook, while media company Comcast slid 2.51% after its quarterly earnings left investors disappointed.

After the closing bell, investors will turn their attention to Twitter and Apple, with both companies set to publish their quarterly results.

"Few doubt Apple’s earnings power but there is a concern that iPhone 6s sales won’t live up to sky-high expectations," said CMC Markets' analyst Jasper Lawler.

"If the number of iPhone units sees a year-over-year decline, it might be taken as a sign that the global smartphone super cycle has peaked.

"Any comments regarding the tech giant’s expectations for the critical holiday quarter may even eclipse the results themselves."

All eyes on the Fed

The Federal Open Market Committee kicks off its two-day meeting on Tuesday, with market participants looking to Wednesday's statement as they look for clues over the timing of a first interest rates hike.

However, analysts warned investors should not expect too much indication from the Fed, which is unlikely to give much away, one way or the other.

"While the US central bank is probably not going to raise rates in December, be assured we’re unlikely to get any form of confirmation either way this week," said Michael Van Dulken, head of research at Accendo Markets.

Elsewhere, Asian stocks closed on a mixed note, while their European counterparts were pulled back slightly and oil prices fell. West Texas Intermediate lost 2.37% to $42.96 a barrel, while Brent slid 1.65% to $46.77 a barrel.

The dollar climbed 0.30% and 0.20% against the euro and the pound respectively but fell 0.49% against the yen, while gold futures rose 0.26% to $1,166.05.