Stocks Barely Budge Ahead Of Crucial Fed Statement -- US Commentary

(RTTNews) - U.S. stocks turned in a lackluster performance Tuesday, with traders reluctant to push the markets higher ahead of Wednesday's Federal Reserve decision.

The Dow industrials eased 19.31 points, or 0.1 percent, to 18,473.75, weighed down by shares of McDonalds (MCD). The fast food giant reported disappointed earnings.

The S&P 500 SPX inched up 0.70 points to close at 2,169.18. The Nasdaq rose 12.42 points, or 0.2 percent to finish at 5,110.05, for its highest close of 2016.

The Fed's decision set to be announced Wednesday afternoon. The Fed is widely expected to leave interest rates unchanged as officials wait to see the fallout from Britain's vote to leave the European Union.

Still, investors will look closely at the statement that accompanies the Fed decision, searching for clues as to when the central bank will hike interest rates.

On the economic front, some positive housing statistics were released on Tuesday. New home sales rose 3.5 percent in June to an annual pace of 592,000 units. This marked a 7-year high for the statistic.

Meanwhile, home sales prices rose more than expected in July. The S&P case-Shiller Index climbed 1.2 percent for the month.

In another report issued on Tuesday, the Conference Board's consumer confidence index came in at 97.3 for July.

Earnings news remains in focus, as big-name companies continue to release their quarterly results.

Caterpillar Inc. (CAT) reported a profit for the second-quarter that declined about 31 percent from the previous year, while total sales and revenues declined 16 percent. The company cut its outlook for fiscal year 2016. It also warned that more layoffs are expected in the second half.

Telecommunications giant Verizon Communications, Inc. (VZ) on Tuesday an 83 percent plunge in profit for the second quarter from last year on lower revenues and higher expenses. However, adjusted earnings per share for the quarter topped analysts' expectations, while revenues missed their estimates. Earlier this week, Verizon agreed to buy the operating business of Yahoo! for $4.8 billion. VZ shares fell 2 percent.

British integrated oil and gas major BP Plc. (BP.L, BP_UN.TO, BP) Tuesday announced a narrower replacement cost loss for the second quarter from the prior year. Revenues were hit by lower oil prices. Results were also hit by charges related to liabilities related to the Deepwater Horizon oil spill. Shares eased one percent.

Linear Technology Corp. (LLTC) skyrocketed 29 percent after Bloomberg reported that the the chip equipment maker was in talks to be acquired by Analog Devices Inc.

Analog chip maker Texas Instruments Inc. (TXN) reported a 12 percent jump in profit for the second quarter, driven largely by better cost control and higher revenues. Earnings for the quarter trumped analysts' expectations, as did revenues. The company also detailed a strong outlook for the third quarter. Shares rose 7.8 percent.