(By Balachander) U.S. stocks ended in red as investors awaited policy decisions from the Federal Reserve and the European Central Bank amid hopes of monetary intervention by the policy makers to stimulate the global economy.
S&P 500 Index lost 0.43 percent to close at 1,379.33. The Dow Jones Industrial Average retreated 0.49 percent to end at 13,008.75. The Nasdaq Composite Index shed 0.21 percent to finish at 2,939.52.
Investors keenly anticipate the Fed's latest monetary policy decision on Wednesday and announcement from the European Central Bank's meeting on Thursday.
On domestic economic front, U.S. personal income rose 0.5 percent and personal spending fell less than 0.1 percent for June, a data from the Bureau of Economic Analysis showed. Economists expected income and spending at 0.4 percent and 0.1 percent, respectively. The S&P/Case-Shiller composite index of 20 metropolitan areas rose 0.9 percent in May, coming in above economists' expectations for a 0.5 percent rise.
Meanwhile, Chicago-area purchasing managers' index showed business activity unexpectedly expanded at a faster pace in July. Another report showed the Conference Board's consumer-sentiment index improved to 65.9 in July from an upwardly revised 62.7 in June, versus economists' expectations for a drop to 61.5.
Hot Stocks Of The Day: PFE, COH, HUM, AH, DNDN, VLO, CMI, X, GT
In corporate news, Pfizer Inc. (NYSE:PFE) added 1.39 percent after the New York-based pharmaceutical giant posted better-than-expected quarterly earnings as drop in costs and expenses offset decline in revenue due to loss of exclusivity of cholesterol drug Lipitor in the U.S.
Coach Inc. (NYSE:COH) lost 18.57 percent after the New York-based maker of luxury handbags posted fourth-quarter revenue that trailed market expectations amid slower same-store sales growth in North America.
Humana Inc. (NYSE:HUM) retreated 12.69 percent after the Louisville, Kentucky-based health insurance benefits company reduced its earnings forecast for 2012 and guided third-quarter below consensus. The company's second-quarter results trailed Wall Street view amid rise in operating expenses.
Accretive Health Inc. (NYSE:AH) rallied 35.66 percent after the Chicago, Illinois-based company reached a $2.5 million settlement with the Minnesota Attorney General, bringing an end to all of the investigations by the various Minnesota departments.
Dendreon Corp. (NASDAQ:DNDN) plunged 22.98 percent after the Seattle, Washington-based biotechnology company posted a loss for the second quarter. Revenue trailed market expectations and the company said it will slash 41 percent of jobs as part of its restructuring plan. Shares were downgraded to "Hold" by Deutsche Bank due to gaps in the sales force, which the bank says will delay growth of prostate cancer drug Provenge.
Cummins Inc. (NYSE:CMI) rose 5.99 percent after the Columbus, Indiana-based maker of diesel engines reported quarterly earnings that topped market forecasts.
Valero Energy Corp. (NYSE:VLO) jumped 5.48 percent after the San Antonio, Texas-based petroleum refiner delivered earnings for the second quarter that beat market expectations.
United States Steel Corp. (NYSE:X) gained 9.14 percent after the Pittsburgh, Pennsylvania-based company's second quarter results exceeded Wall Street expectations.
Goodyear Tire & Rubber Co. (NYSE:GT) surged 10.41 percent after the Akron, Ohio-based company posted an increase in quarterly earnings on lower costs and expenses.
DineEquity Inc. (NYSE:DIN) added 15.42 percent, while RealD (NYSE:RLD) plunged 23.02 percent, following their quarterly reports.
Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) closed lower after the Tarrytown, New York-based biopharmaceutical company said the U.S. health regulators requested additional clinical data for its Arcalyst treatment to prevent gout flares.
European markets ended in red, with Germany's DAX edging down 0.03 percent to close at 6,772.26. France's CAC40 fell 0.87 percent to finish at 3,291.66. U.K.'s FTSE 100 dropped 1.02 percent to end at 5,635.28.
Among Asian markets, China's Shanghai Stock Exchange Composite Index fell 0.30 percent to finish at 2,103.63. Japan's Nikkei 225 gained 0.69 percent to end at 8,695.06. Hong Kong's Hang Seng Index rallied 1.08 percent to end at 19,796.81. India's BSE Sensex finished at 17,236.18, up 0.54 percent.
Commodity & Currency Scan:
Crude oil futures retreated 2.38 percent to $87.64 per barrel while natural gas futures inched up 0.19 percent to $3.220 per million metric British thermal units. Gold futures declined 0.41 percent to $1,617.3 per ounce and silver futures dropped 0.51 percent to $27.890 per ounce.
In the currency market, the euro rose 0.39 percent against the U.S. dollar to 1.2308. The British pound shed 0.19 percent against the greenback to 1.5680, and the dollar dipped 0.08 percent against the Japanese yen to 78.1200.