U.S. stocks retreated from early gains Monday as traders eyed this week’s election results and Fed meeting. The stock markets were mixed with the Dow Jones and the Standard& Poor index gaining and the Nasdaq declining.
The Standard& Poor index edged up 0.1 percent to 1,184.38. The Dow Jones industrial average rose 125 points. However, the Dow dropped steadily throughout the day, finishing at 11,124.62.
Manufacturers Caterpillar Inc., United Technologies Corp. and General Electric Co were the best performers. Intel Corp. (NASDAQ: INTC) added 2.5 percent while Kraft Foods Inc. (NYSE: KFT) declined 1.5 percent.
On the contrary, the technology-focused Nasdaq composite index dropped 0.1 percent to 2,504.84.
NextEra Energy shed 2% to 53.92 while Baker Hughes (NYSE: BHI) climbed 4.2% to 48.37. The oil field services company reported its soaring earnings in the third quarter thanks to benefits from a rebound in North America, the April acquisition of BJ Services, and a seasonal recovery in Canada.
Hank Camp, founder of HL Camp & Co, said that the market had been rallying most straight up for a long, long time, adding that it was way overdone.
A mixed picture of the economy emerged prior to key midterm elections. Spending slowed in September. Manufacturing activity grew by the most in five months. Consumer spending rose 0.2 percent in September after 0.5 percent gains in the two previous months.
Stocks rose for much of October as traders expected that the Fed will announce another round of bond buying to boost recovery. Fed is expected to announce as early as Wednesday its plans to buy government debt.
Lower interest rates would make stocks and commodities more attractive for traders to make their investments.
Demand for Treasurys pushed the 10-year note’s yield up to 2.62%. The dollar rose 0.28 percent against a broad basket of currencies. Crude-oil prices fell below $83 a barrel.
In the European markets, stocks opened mostly lower on Tuesday. The Spanish IBEX-35 index dropped 0.5% at the open to 10,594.70. The German DAX 30 index fell slightly to 6,604.11. The French CAC-40 index was down 0.2% to 3,833.24. In London, the FTSE 100 index added 0.2% to 5,704.46.