Wall St lower as earnings roll in; Fed meet eyed

Members of the Federal Open Market Committee will convene on Tuesday for a two-day meeting, followed by an announcement on Wednesday afternoon.

Investors see only an 8 percent probability of a move being announced when the FOMC releases its policy statement at 2 p.m. on Wednesday, according to pricing in federal funds futures contracts, though recent remarks by policy makers signals that they think the economy remains on track.

Even with recent data pointing to the United States economy being on strong footing, the Fed is still cautious about pulling the trigger due to global uncertainty sparked by Britain’s vote to leave the European Union.

However, for the first time since the Fed hiked rates in December, the chance of a growth acceleration is looking as real as the downside risks that “several” FOMC participants fretted over in June.

After the close, Gilead Sciences fell 3 percent and Sanmina fell 12.6 percent following their quarterly reports.

“We’re in a period where the market’s looking really exhausted”, said Matthew Tuttle, chief investment officer of Tuttle Tactical Management.

Shares fell nearly across the board, with energy stocks leading declines across 10 S&P 500 sectors and the consumer discretionary sector the lone gainer, helped by a 1.84-percent gain in Target.

All 10 major S&P sectors were lower, led by a 0.7 per cent drop in energy stocks, which was weighed down by weak oil prices.

Exxon XOM.N and Chevron CVX.N fell about 1.4 percent, dragging down the S&P and the Dow.

The Nasdaq composite was down marginally, giving back 2.53 points at 5,097.63. September silver SIU6, +0.01% was down 26.9 cents, or 1.4%, at $19.42 an ounce.

The S&P/Case Shiller Home Price Indices, a leading measure of the housing market, found that April home prices in the Boston area rose 5.7 percent from the previous year, slightly higher than the national average of 5.0 percent. The stock gave the biggest boost to the S&P and the Nasdaq.

Micron shares surged 6.7 per cent to $14 after a Credit Suisse analyst said the company’s new rights agreement increased prospects of a strategic investment in the near term.

Declining issues outnumbered advancing ones on the NYSE by 1,605 to 993.

The S&P energy index fell 1.99 percent, its deepest percentage decline since late June.