Market Wrap: Dow, S&P 500 Slip as Apple, Energy Weigh

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Financial Markets Wall Street
Richard Drew/AP
By Caroline Valetkevitch

NEW YORK -- The Dow and the S&P 500 edged lower Monday as energy shares dropped with oil prices and Apple retreated a day before its quarterly results.

Investors were cautious ahead of the Federal Reserve's two-day policy meeting, which begins Tuesday. The market is looking for clues on the outlook for when the Fed may begin raising interest rates.

Apple (AAPL) shares fell 3.2 percent to $115.28, making it the biggest drag on all three major indexes, while a weak outlook from one of its suppliers, Dialog Semiconductor, led a fall in other semiconductors. An index of semiconductors was down 2 percent after three days of gains.

%VIRTUAL-pullquote-With Apple, it's more about their forecast and China news and any upgrades they may want to announce.%The iPhone-maker reports quarterly results after the market closes Tuesday.

"With Apple, it's more about their forecast and China news and any upgrades they may want to announce," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.

The S&P energy sector fell 2.5 percent, leading sector declines for the S&P 500. Crude oil prices slipped as global oversupply pushed fuel storage sites close to capacity. Exxon (XOM) fell 2.1 percent to $81.22, while Chevron (CVX) was down 2.7 percent to $88.77.

U.S. stocks have mostly gained in October after a weak third quarter. The S&P 500 is up 7.9 percent for the month so far.

"It's been a pretty big move up, so we're seeing a little bit of consolidation today," Meckler said.

The Dow Jones industrial average (^DJI) fell 23.65 points, or 0.1 percent, to 17,623.05, the Standard & Poor's 500 index (^GSPC) lost 3.97 points, or 0.2 percent, to 2,071.18 and the Nasdaq composite (^IXIC) added 2.84 points, or 0.1 percent, to 5,034.70.

Among the top Nasdaq gainers, shares of Ctrip.com (CTRP) rose 22.1 percent to $90.78 after the online travel firm said it would merge with Qunar Cayman Islands. Qunar (QUNR) jumped 7.9 percent to $42.65.

Strong quarterly results from tech companies have helped improve expectations for overall U.S. third-quarter earnings.

S&P 500 earnings are estimated to have declined a more modest 2.8 percent in the quarter, compared with 4.2 percent forecast at the start of the month, according to Thomson Reuters (TRI) data.

Housing Slips

Data showed new home sales fell 11.5 percent in September, suggesting a softening of the housing market. An index of housing shares was down 0.4 percent.

Among other gainers, Pep Boys (PBY) jumped 23.4 percent to $14.99 after it agreed to be acquired by Bridgestone for $15 a share.

Piedmont Natural Gas (PDM) rose 36.9 percent to $57.82 after it agreed to be bought by Duke Energy. Duke Energy (DUK) fell 2.4 percent.

NYSE declining issues outnumbered advancers 1,916 to 1,153, for a 1.66-to-1 ratio; on the Nasdaq, 1,749 issues fell and 1,077 advanced, for a 1.62-to-1 ratio favoring decliners.

The S&P 500 posted 36 new 52-week highs and 8 lows; the Nasdaq recorded 111 new highs and 73 lows.

About 6.1 billion shares changed hands on U.S. exchanges, below the 7.3 billion daily average for the past 20 trading days, according to Thomson Reuters data.

-Abhiram Nandakumar contributed reporting from Bangalore, India.

What to watch Tuedsay:
  • The Commerce Department releases durable goods for September at 8:30 a.m. Eastern time.
  • Standard & Poor's releases S&P/Case-Shiller index of home prices for August at 9 a.m.
  • The Conference Board releases the Consumer Confidence Index for October at 10 a.m.
Earnings Season
These selected companies are scheduled to report quarterly financial results:
  • Alibaba Group (BABA)
  • Apple (AAPL)
  • Comcast (CMCSA)
  • Dupont (DD)
  • Ford Motor Co. (F)
  • Gilead Sciences (GILD)
  • Merck & Co. (MRK)
  • Pfizer (PFE)
  • Reynolds American (RAI)
  • Twitter (TWTR)
  • United Parcel Service (UPS)
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