Investing.com - U.S. stocks edged lower on Tuesday as investors jumped to the sidelines to await the Federal Reserve's Wednesday announcement on monetary policy and any decision to taper its USD85 billion in monthly bond purchases.
Fed bond purchases drive down interest rates to spur recovery, boosting equities in the process, and talk of their dismantling can water down stock prices by fanning uncertainty over how equities will perform without a monetary crutch.
Tame inflation data failed to give markets an indicator as to whether or not monetary authorities will begin to trim bond purchases in 2013 or in 2014.
At the close of U.S. trading, the Dow Jones Industrial Average fell 0.06%, the S&P 500 index fell 0.31%, while the Nasdaq Composite index fell 0.14%.
The Department of Labor reported earlier that the U.S. consumer price index came in flat in November after falling 0.1% in October. Analysts were calling for a 0.1% uptick.
The annual rate of inflation rose 1.2% in November, just shy of expectations for 1.3% reading but still up from a four-year low of 1.0% in October.
U.S. core inflation, stripped of volatile food and energy items, rose 0.2% in November from October, beating expectations for a 0.1% gain, while the year-on-year rate for November rose 1.7%, which met consensus forecasts.
Markets took the data in stride, keeping an eye on Wednesday, when the Fed will release its statement on interest rates and monetary policy.
While most expect the Fed to announce plans to trim assets now or in a couple of months down the road, many opted to remain on the sidelines before taking in the Fed's decision and language.
Leading Dow Jones Industrial Average performers included 3M, up 2.92%, Visa, up 2.63%, and Cisco, up 1.14%.
The Dow Jones Industrial Average's worst performers included Verizon, down 1.46%, JPMorgan Chase, down 1.23%, and Chevron, down 1.22%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 1.11%, France's CAC 40 fell 1.24%, while Germany's DAX 30 fell 0.86%. Meanwhile, in the U.K. the FTSE 100 finished down 0.55%.
On Wednesday, stocks will move on the Fed's statement on U.S. monetary policy. Elsewhere, the U.S. is to release data on building permits and housing starts.
Fed bond purchases drive down interest rates to spur recovery, boosting equities in the process, and talk of their dismantling can water down stock prices by fanning uncertainty over how equities will perform without a monetary crutch.
Tame inflation data failed to give markets an indicator as to whether or not monetary authorities will begin to trim bond purchases in 2013 or in 2014.
At the close of U.S. trading, the Dow Jones Industrial Average fell 0.06%, the S&P 500 index fell 0.31%, while the Nasdaq Composite index fell 0.14%.
The Department of Labor reported earlier that the U.S. consumer price index came in flat in November after falling 0.1% in October. Analysts were calling for a 0.1% uptick.
The annual rate of inflation rose 1.2% in November, just shy of expectations for 1.3% reading but still up from a four-year low of 1.0% in October.
U.S. core inflation, stripped of volatile food and energy items, rose 0.2% in November from October, beating expectations for a 0.1% gain, while the year-on-year rate for November rose 1.7%, which met consensus forecasts.
Markets took the data in stride, keeping an eye on Wednesday, when the Fed will release its statement on interest rates and monetary policy.
While most expect the Fed to announce plans to trim assets now or in a couple of months down the road, many opted to remain on the sidelines before taking in the Fed's decision and language.
Leading Dow Jones Industrial Average performers included 3M, up 2.92%, Visa, up 2.63%, and Cisco, up 1.14%.
The Dow Jones Industrial Average's worst performers included Verizon, down 1.46%, JPMorgan Chase, down 1.23%, and Chevron, down 1.22%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 1.11%, France's CAC 40 fell 1.24%, while Germany's DAX 30 fell 0.86%. Meanwhile, in the U.K. the FTSE 100 finished down 0.55%.
On Wednesday, stocks will move on the Fed's statement on U.S. monetary policy. Elsewhere, the U.S. is to release data on building permits and housing starts.