Investing.com – Wall Street followed global stocks lower on Tuesday as Japan’s stimulus program disappointed and worries continued over European banks after last Friday’s stress tests, while investors stateside chewed over consumer and inflation data and company numbers.
At 15:17GMT, or 11:17AM ET, the Dow 30 fell 104 points, or 0.57%, the S&P 500 dropped 17 points, or 0.80%, while the tech-heavy Nasdaq Composite traded down 55 points or 1.06%.
On Tuesday’s economic front, personal spending rose slightly more than expected in June, while the Fed’s favorite inflation gauge, the core personal consumption expenditure (PCE) price index, for the same month showed the annualized rate remain at 1.6% for a fourth straight month, below the Fed’s 2% target.
After the data was published, Fed fund futures reduced the probability for policy tightening this year. They are currently pricing in just a 15% chance of a rate hike in September, compared to 18% before the release. December odds dropped to 39.3%, compared to the previous 42.7%.
As chances for policy tightening slipped, the dollar extended losses on to hit a fresh five-week trough against the other major currencies on Tuesday.
While investors waited for July’s total vehicle sales to be released later in the session, the so-called “big 3” Ford Motor Company (NYSE:F), Fiat Chrysler Automobiles NV (NYSE:FCAU) and General Motors Company (NYSE:GM) had all reported U.S. sales for July that came in under estimates on Tuesday.
Among blue-chip earnings, Pfizer (NYSE:PFE) lost more than 2% after reporting a 23% drop in profit that nevertheless beat estimates.
Procter & Gamble (NYSE:PG) traded flat despite better than expected earnings, while the consumer products maker noted that currency fluctuations would distort current-quarter numbers.
Electronic Arts Inc (NASDAQ:EA) and American International Group Inc (NYSE:AIG) will report earnings after the close.
Meanwhile, oil prices moved higher on Tuesday, but remained in bear market territory amid signs of increasing production in the U.S. and rising output among members of the Organization of the Petroleum Exporting Countries (OPEC).
Crude futures are more than 20% below their 2016 highs above $50 a barrel scaled in early June, technically placing it in bear market territory, as signs of an ongoing recovery in U.S. drilling activity combined with elevated stocks of fuel products weighed.
In this context, investors looked ahead to the American Petroleum Institute’s inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 1.9 million barrels in the week ended July 29.
U.S. crude futures traded up 0.20% to $40.14 by 15:19GMT, or 11:19AM ET, while Brent oil gained 0.31% to $42.27.