By Sara Sjolin and Anora Mahmudova, MarketWatch
Pfizer shares hit after disappointing earnings results
U.S. stocks edged lower Tuesday, with the S&P 500 on track for a sixth consecutive loss, as investors grappled with mixed economic data, earnings results, car sales numbers and an uptick in bond yields.
Two surveys on manufacturing (http://www.marketwatch.com/story/us-manufacturers-pick-up-the-pace-ism-finds-2016-11-01) in October showed the sector expanding slowly, consistent with a consensus view that growth is healthy enough for the Federal Reserve to increase interest rates at its December meeting.
The Fed officials began a two-day policy meeting, which concludes on Wednesday, and are widely expected to leave rates unchanged this time, as investors think the central bank will want to avoid influencing the outcome of the presidential election next week.
The S&P 500 index was down 5 points, or 0.3%, at 2,120, declining for the sixth straight session. A jump in the 10-year Treasury (http://www.marketwatch.com/story/treasury-yields-rise-after-strong-china-pmi-data-2016-11-01) yields to 1.87% hit rate-sensitive sectors, such as telecoms, utilities and real estate, which were down nearly 1%. But higher oil prices supported energy shares, which were modestly higher.
On Tuesday, crude oil prices rebounded to trade 0.1% higher at $46.93 a barrel.
The "ISM number was good, with new orders and production improving. But at this stage, investors are looking at the jobs number on Friday and election next week," said Eric Wiegand, senior portfolio manager at the Private Client Reserve, U.S. Bank.
"The sideways move over the past month isthe sign of lack of conviction among investors. With valuations this high, investors want to see earnings growth and not just improvement relative to lowered expectations," Wiegand said.
Earlier stock futures were also buoyed by upbeat data from China, where the official manufacturing PMI for October rose to a two-year high (http://www.marketwatch.com/story/china-manufacturing-pmi-at-highest-since-july-2014-2016-11-01) of 51.2, from September's 50.4.
The Dow Jones Industrial Average declined 40 points, or 0.2% to 18,103. The Nasdaq Composite was down 13 points, or 0.4%, to 5,176.
Economic news: Manufacturing activity was also a focus in the U.S.
The Institute for Supply Management manufacturing index rose to 51.9% in October, slightly ahead of 51.7% forecast by economists polled by MarketWatch. Meanwhile construction spending declined 0.4% in September.
Investors were also digesting monthly car sales numbers. General Motors andFord Motor Co (http://www.marketwatch.com/story/gm-october-sales-slip-due-to-fewer-selling-days-2016-11-01). reported their U.S. sales slipped in October, hurt by fewer selling days and a cutback in fleet sales.
Other markets: The ICE dollar index was down 0.4% at 98.08 on Tuesday.
Stocks closed mostly higher in Asia (http://www.marketwatch.com/story/asian-stocks-mostly-up-after-upbeat-manufacturing-data-from-china-2016-10-31), with Hong Kong's Hang Seng rising 0.9%. European stocks opened higher, but turned lower midmorning (http://www.marketwatch.com/story/earnings-gloom-swings-european-stocks-lower-2016-11-01)as disappointing earnings reports came in. Prices of metals, which are sensitive to growth news out of China, rose across the board.
The yen slipped after the Bank of Japan made no changes to policy (http://www.marketwatch.com/story/bank-of-japan-lowers-inflation-outlook-holds-off-on-more-stimulus-2016-10-31). The pound pared its gains that came after Bank of England Gov. Mark Carney late Monday said he'll remain in his post until June 2019 (http://www.marketwatch.com/story/bank-of-england-gov-mark-carney-to-leave-post-in-june-2019-2016-10-31).
Movers and shakers: Gannett Co. Inc. shares (GCI) jumped 9% Tuesday after the USA Today publisher said it has given up its effort to acquire Chicago Tribune and Los Angeles Times publisher, which changed its name to Tronc Inc. (TRNC) from Tribune Publishing in June. Tronc shares tumbled 29% on the news.
U.S.-listed shares of Royal Dutch Shell PLC(RDSB.LN) (RDSB.LN) rose 4.6% after the oil giant reported a rise in third-quarter profit (http://www.marketwatch.com/story/shell-swings-to-profit-but-cautious-in-oil-view-2016-11-01).
Pfizer Inc.(PFE) dropped 0.5% after the drug giant reported third-quarter earnings and revenue slightly below forecasts.
L Brands Inc.(LB) shares sank 7.8% after downbeat third-quarter profit outlook.
Angie's List Inc.(ANGI) shares soared 8.4% after the company said it has hired financial advisers to review its strategic options as it continues to work on a turnaround and seeks new opportunities.
Archer Daniels Midland Co.(ADM) gained 8.4% after the food processing company beat the earnings forecast for the third quarter.
Molson Coors Brewing Co.(TAP) said global beer volumes were down 3.8% in the third quarter.
Kellogg Co.(K) shares were up 2.2% after the food company reported third-quarter earnings that beat expectations.
(END) Dow Jones Newswires
November 01, 2016 11:01 ET (15:01 GMT)
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