By Anora Mahmudova and Victor Reklaitis, MarketWatch

Twitter shares plunge after results; Facebook to report after close

U.S. stocks flipped between small gains and losses late-morning Wednesday as declines in consumer-staples and energy shares outweighed gains in tech.

Investors also were cautious ahead of the Federal Reserve statement due at 2 p.m. Eastern Time.

The S&P 500 index reversed an opening advance to trade 5 points, or 0.2% lower at 2,163. Consumer staples, led by a 3.4% drop in shares of Coca-Cola Co. (KO), and utilities, led the downturn. Energy stocks were hit by another drop in crude-oil prices, while technology, up 0.6%, and telecom shares, 0.1% higher, showing modest gains.

The Dow Jones Industrial Average was mostly flat at 18,470, with a decline in the blue-chip index checked by Apple(AAPL), which soared more than 6% after the iPhone maker late Tuesday posted quarterly profit that dropped from a year ago, but beat expectations (http://www.marketwatch.com/story/apple-earnings-weighed-down-by-iphone-slump-2016-07-26-16485385). Revenue at the world's largest company by market value also fell, yet topped Wall Street's forecasts.

Meanwhile, the Nasdaq Composite Index was holding on to modest gains, up 20 points, or 0.4%, to 5,130, thanks to Apple.

"Apple is not just a tech company, it is also a consumer discretionary. It represents a pulse for consumer demand," said Diane Jaffee, senior portfolio manager at TCW.

Read:iPhone SE, iPad Pro throw new wrinkle into Apple finances (http://www.marketwatch.com/story/iphone-se-ipad-pro-throw-new-wrinkle-into-apple-finances-2016-07-26)

And:Analysts upbeat on Apple as 'toughest two quarters' now behind it (http://www.marketwatch.com/story/apples-earnings-analysts-upbeat-as-toughest-two-quarters-now-behind-it-2016-07-27)

On the Fed front, the U.S. central bank is expected to stand pat on interest rates as it releases a policy statement later this afternoon. Traders want to see if Fed Chief Janet Yellen and her colleagues offer signals on the possibility of a September rate hike (http://www.marketwatch.com/story/what-to-expect-in-the-fed-statement-next-week-2016-07-22).

Read:Why the Fed may want to take away the stock market's punch bowl (http://www.marketwatch.com/story/why-the-fed-may-want-to-lurch-for-the-punch-bowl-2016-07-26)

"The Fed walks a delicate line. We anticipate hawkish talk, no action, as the Fed would like to bring up expectations of a rate hike in light of better economic data in the U.S. and as Europe is not showing utter disaster," Jaffee said.

The key is whether the Fed's statement will "build expectations of a hike in the second half of the year or deliver a more dovish message highlighting the heightened risks, including Brexit," said Craig Erlam, senior market analyst at Oanda, in a note.

"As it stands, the markets have once again come around to the idea that there will be another hike this year, pricing in a 51% chance of it happening by December," Erlam said.

Other markets: Oil futures dropped nearly 2% after data showed domestic crude products, notably gasoline, rose unexpectedly.

European stocks were higher while Asian markets were mixed--with the Nikkei up 1.7%, but Shanghai down 1.9%--as investors digested conflicting reports (http://www.marketwatch.com/story/dollar-rises-against-yen-amid-conflicting-reports-about-japan-stimulus-2016-07-27) about the Japanese government's soon-to-be-released stimulus measures. Gold futures edged higher, while the ICE U.S. Dollar Index was slightly higher.

Economic news: Market reaction to disappointing durable-goods orders (http://www.marketwatch.com/story/us-durable-goods-orders-sink-4-in-june-biggest-drop-in-almost-two-years-2016-07-27)was muted. Orders for durable or long-lasting goods made in the U.S. sank 4% in June, much more than a 1.7% drop expected by economists polled by MarketWatch.

A gauge of pending home sales rose in June (http://www.marketwatch.com/story/pending-home-sales-tick-up-02-in-june-2016-07-27), signaling slow-but-steady momentum for housing despite headwinds in the market.

Individual movers: Shares in Twitter Inc.(TWTR) fell 12% after the social media company's disappointing earnings report late Tuesday (http://www.marketwatch.com/story/analog-devices-agrees-to-148-billion-deal-for-linear-technology-2016-07-26).

Goodyear Tire & Rubber Co(GT) jumped 3.6% after the company beat earnings estimates.

Linear Technology Corp.(LLTC) dropped 3.5% after Analog Devices Inc.(ADI) on Tuesday announced it would acquire its fellow chip maker (http://www.marketwatch.com/story/analog-devices-agrees-to-148-billion-deal-for-linear-technology-2016-07-26) in a cash-and-stock deal worth $14.8 billion.

Coke shares slid 2.8% after the drinks giant posted weaker-than-expected quarterly sales (http://www.marketwatch.com/story/coca-cola-shares-fall-after-sales-miss-estimates-2016-07-27), while Boeing Co.(BA) gained 2.3% following a smaller-than-anticipated quarterly loss (http://www.marketwatch.com/story/boeing-shares-climb-after-smaller-than-expected-second-quarter-loss-2016-07-27).

Mondelez International Inc (http://www.marketwatch.com/story/mondelez-shares-fall-after-sales-miss-estimates-2016-07-27).(MDLZ) shares fell 0.3% after the food giant reported second-quarter sales that missed estimates.

Comcast Corp.(CMCSA) shares were slightly lower even as its results beat forecasts (http://www.marketwatch.com/story/comcast-revenue-beats-as-video-subscribers-improve-2016-07-27).

Facebook Inc.(FB) and Whole Foods Market Inc. (WFM) are among those due to report after the market's close.

Read earnings previews for Facebook (http://www.marketwatch.com/story/what-to-expect-when-facebook-reports-earnings-2016-07-25) and (http://www.marketwatch.com/story/what-to-look-for-in-comcast-earnings-2016-07-26)Whole Foods (http://www.marketwatch.com/story/what-to-watch-for-in-whole-foods-earnings-2016-07-26).

 

(END) Dow Jones Newswires

July 27, 2016 11:46 ET (15:46 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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