The Dow closed down -64.33 (-0.49%) at 13,008.68.
So we close just above 13,000, waiting on the Fed and ECB to speak or act on something.
Today, we had 9 of 30 Dow stocks up. The Dow winners were PFE (+1.39%), T, BAC, KFT, CSCO, VZ, AA, DD and MCD.
Dow losers were led by HD (-2.01%), CAT, DIS, BA, AXP, TRV, PG and XOM.
The Fed started a two-day meeting today, with an announcement to come Wednesday afternoon. The Fed has three likely options which include cutting the interest rate the Fed pays on bank reserves from its current 0.25% to zero, following the ECB’s decision earlier this month to cut its deposit rate to zero. The Fed could also extend its plan to keep interest rates near zero beyond its current 2014 forecast. Les likely would be a third round of quantitative easing from the Fed. The market will expect hints on future actions though.
The ECB Governing Council meets in Frankfurt on Thursday. They really need to get something done.
The unemployment rate for the 17-nation eurozone held steady from the previous month at a record 11.2% in June. In the broader 27 nations that make up the EU, the unemployment rate in June remained at 10.4%, unchanged from May.
Personal income rose 0.5% in June, while spending remained unchanged. Economists expected a 0.4% increase in income and a 0.1% rise in spending.
In signs of a U.S. housing rebound, home prices in 20 major cities rose 2.2% in May, according to the S&P/Case-Shiller index. Economists were forecasting a 1.8% drop in prices in May, following a 1.9% decline in the previous month.
The Chicago PMI rose to 53.7 in July from 52.9 the prior month. Economists were expecting the index to slip to 52.5 during the month.
Consumer confidence rose in July, with the index rising to 65.9 from 62.7 in June. Economists were expecting the reading to decline slightly to 61.
The dollar was down against the euro and Japanese yen, but gained versus the British pound.
Oil for September delivery dropped $2.18 to $87.60 a barrel.
Gold futures for August delivery fell $9.20 to $1,610.50 an ounce.
The price on the benchmark 10-year U.S. Treasury slipped lower, pushing the yield up to 1.49% from 1.50% late Monday.
Tomorrow before the open, notable stocks expected to report earnings include BOKF, CNH, HOG, OC, ROC, D, SHPG, GGS, FVE, SNH, RFP, ADP, AVP, CCC, DST, GAS, HSP, HUN, OSG, POZN, RDN, TLM, TNS, WEC, AFAM, AGN, AGP, ASCA, CMCSA, DVN, DWSN, EE, ENR, EPD, GRMN, GTS, HSNI, ICE, MA, MAC, MMP, MRO, MTOR, OIIM, PNX, RRD, SBGI, SPW, TWX, VG, VICL, WXS, AMT, CLDX, CWH, H, LFUS, RTI, SIR, CTRX, ZIOP, EXC, MFA , DM, AMRI, CGX, DTG, NICE, SSYS, DCIX, BAH, MDCI and BKW.
Pfizer (PFE) and AT&T (T) both made new 52 week highs today.