By Anora Mahmudova and Sara Sjolin, MarketWatch
Coach, Whirlpool slump after earnings miss
U.S. stock indexes moved lower after disappointing corporate and
economic news and ahead of the Federal Reserve's two-day policy
meeting.
The S&P 500 and Nasdaq Composite continued their retreat
from record levels reached on Friday, while investors assessed a
number of mixed earnings report, a reading on home prices and
consumer confidence data.
The S&P 500 (SPX) slipped 8 points, or 0.4%, to 2,100.
Consumer discretionary and health care stocks led the losses. The
Dow Jones Industrial Average (DJI) dropped 70 points, or 0.4%, to
17,969. The Nasdaq Composite (RIXF) declined 41 points, or 0.8%, to
5,019.
"With the strength in equities of late, investors are looking
for any excuse to lock in some profits and Fed meetings tend to
provide a prompt," said Mike McCudden, head of derivatives at
stockbroker Interactive Investor, in a note. "However, with a low
rate and artificially stimulated global environment equities are
still looking to continue their trend higher."
The Federal Reserve Open Market Committee meeting kicks off on
Tuesday, but the interest-rate statement isn't released until
Wednesday afternoon at 2 p.m. Eastern Time. Investors will be
looking for clues as to whether a near-term rate hike is still in
play, although a large majority of Fed watchers don't think the
central bank will provide any hints, preferring to keep all options
on the table
(http://www.marketwatch.com/story/fed-not-ready-to-concede-it-wont-hike-this-summer-2015-04-27).
For the discussion on Wednesday, the FOMC will have the
first-quarter GDP number to include in their assessment of the
economy and interest rates.
Lousy corporate revenues could keep the Fed on hold
(http://www.marketwatch.com/story/lousy-corporate-revenues-could-keep-the-fed-on-hold-2015-04-27)
Tuesday's data:Consumers confidence
(http://www.marketwatch.com/story/consumers-less-confident-in-april-after-slowdown-in-hiring-2015-04-28)
fell in April, reflecting a slowdown in hiring and dimmer
expectations about economic growth in the months ahead.
U.S. house prices
(http://www.marketwatch.com/story/case-shiller-20-city-home-price-index-up-05-in-february-2015-04-28-99105)
picked up in February, rising 0.5%, according to the
S&P/Case-Shiller 20-city composite index released Tuesday.
Compared with February 2014, prices for the 20-city index were up
5% -- the fastest growth in half a year.
Earnings: Reporting ahead of the bell, Ford Motor Co.(F) said
profit was down 7%
(http://www.marketwatch.com/story/ford-profit-down-7-on-losses-in-europe-latam-2015-04-28)
in the first quarter as profitability in North America and Asia was
offset by losses in Europe and South America. Shares were
little-changed.
Drug maker Pfizer Inc.(PFE) reported a slight rise in
first-quarter profit
(http://www.marketwatch.com/story/pfizer-trims-outlook-on-strong-dollar-2015-04-28),
but trimmed its full-year outlook. Shares climbed 0.5%.
Another drug maker, Merck & Co. Inc. (MRK) put on 5.1% after
raising its earnings guidance for the full year
(http://www.marketwatch.com/story/merck-raises-outlook-as-profit-sales-top-estimate-2015-04-28)
despite the negative impact of the stronger dollar.
Shares of Coach Inc.(COH) slumped 7.9% after the luxury-goods
retailer topped fiscal third-quarter profit expectations, but
missed on sales
(http://www.marketwatch.com/story/coachs-stock-drops-after-sales-fall-more-than-expected-2015-04-28).
Shares of Whirlpool Corp.(WHR) dropped 6.4% after the
home-appliances maker cut its full-year earnings guidance
(http://www.marketwatch.com/story/whirlpool-profit-falls-short-cuts-outlook-2015-04-28).
Apple earnings: After Monday's closing bell, tech giant Apple
(AAPL) posted a 33% rise in quarterly profit
(http://www.marketwatch.com/story/apple-posts-33-rise-in-earnings-raises-div-2015-04-27),
boosted by a surge in iPhone sales and solid growth in China. Apple
also raised its dividend, by 11%, and its share-repurchase program
by $50 billion, to $140 billion. Shares, however, fell 1.2%. Read:
How to play Apple stock after the earnings call
(http://www.marketwatch.com/story/how-to-play-apple-stock-post-earnings-2015-04-27)
Morgan Stanley lifted its price target on Apple to $166 from
$160 and said the company is among its "best idea" stocks.
Don't miss: Who else is miffed about Apple's 'very modest' watch
launch?
(http://www.marketwatch.com/story/who-else-is-miffed-about-apples-very-modest-watch-launch-2015-04-28)
Other markets:European stock markets
(http://www.marketwatch.com/story/european-stocks-fall-as-commerzbank-shares-drop-fed-meeting-eyed-2015-04-28)
were lower, with investors there also taking a cautious stance
ahead of the Fed meeting.
Asia stocks closed mixed
(http://www.marketwatch.com/storyno-meta-for-guid), with Japanese
shares shrugging off a sovereign credit downgrade by Fitch
Ratings.
Metals dropped across the board, and so did energy prices
(http://www.marketwatch.com/story/oil-slides-with-brent-dropping-below-65-2015-04-28).
The dollar (DXY) was mostly lower against other major
currencies.
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