US STOCKS-Weak results keep S&P, Nasdaq lower ahead of Fed decision

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US STOCKS-Weak results keep S&P, Nasdaq lower ahead of Fed decision

* Bank stocks gain ahead of Fed decision

* Housing stocks tumble after D.R. Horton results

* Wynn Resorts pulls down other casino operators on Macauwarning

By Sruthi Shankar

Nov 8 (Reuters) - The S&P 500 and the Nasdaq edged lower onThursday, as weak earnings reports and caution ahead of theFederal Reserve's interest rate decision stalled a rally fromthe previous session, which was spurred by the outcome formidterm elections.

Among the biggest deliners on the S&P 500 were Perrigo CoPRGO.N , Wynn Resorts LtdWYNN.O and D.R. Horton IncDHI.N ,all falling on disappointing quarterly results.

Qualcomm IncQCOM.O dropped 7.1 percent after thechipmaker forecast sales revenue for the holiday quarter belowanalysts' estimates, as it took a hit from the loss of chipsales to Apple IncAAPL.O . urn:newsml:reuters.com:*:nL4N1XI62B

Technology stocks .SPLRCT , that rallied the most onWednesday, dipped 0.4 percent.

The S&P banking index .SPXBK was up 0.9 percent, with Bankof America CorpBAC.N rising 1.8 percent and JPMorgan Chase &CoJPM.N gaining 1 percent ahead of the Fed decision.

Financials were among the few gainers, with the broadermarket dipping after a 2 percent surge on Wednesday as investorsbraced for a political gridlock in Washington.

"The market is going to go into a trading range for awhile...(yesterday) was relief that there wouldn't be any severeeconomic changes for the next couple of years," said BruceBittles, chief investment strategist at Robert W. Baird & Co inSarasota, Florida.

"The Fed may give some indication of what they're going todo in December, that might be holding the market back."

The U.S. central bank, which is set to release its ratedecision at 2:00 pm ET, is expected to leave interest ratesunchanged, but the statement that follows could lay the groundfor a fourth rate hike in December as well as next year.

At 11:39 a.m. EDT the Dow Jones Industrial Average .DJI was up 51.07 points, or 0.20 percent, at 26,231.37, the S&P 500 .SPX was down 2.56 points, or 0.09 percent, at 2,811.33 andthe Nasdaq Composite .IXIC was down 25.53 points, or 0.34percent, at 7,545.23.

Gains in Walgreen Boots Alliance IncWBA.O and Intel CorpINTC.O lifted the Dow.

Wynn Resorts fell 12.1 percent after the casino operatormissed third-quarter profit estimate and warned of a slowdown inthe key Macau market. That hit shares of peers Melco ResortsMLCO.O and MGM ResortsMGM.Nurn:newsml:reuters.com:*:nL8N1XI9ZA

D.R. HortonDHI.N fell 6.2 percent and dragged on otherhomebuilders after it warned of rising home prices and highermortgage rates weighing on demand. urn:newsml:reuters.com:*:nL4N1XJ4J5 The PHLX Housingindex .HGX fell 1.8 percent.

Perrigo CoPRGO.N plunged 14.9 percent after the genericdrugmaker cut full-year earnings forecast on loweredexpectations from its prescription pharmaceuticals. urn:newsml:reuters.com:*:nL4N1XJ4R1

The top gainer on the S&P 500 was TripAdvisor IncTRIP.O ,which jumped 15.6 percent after the hotel search websitereported better-than-expected third-quarter profit. urn:newsml:reuters.com:*:nL4N1XI7CR

Declining issues outnumbered advancers for a 1.19-to-1 ratioon the NYSE and for a 1.12-to-1 ratio on the Nasdaq.

The S&P index recorded 33 new 52-week highs and two newlows, while the Nasdaq recorded 63 new highs and 58 new lows. (Reporting by Sruthi Shankar in Bengaluru; Editing by ArunKoyyur) ((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 2238780; outside U.S. +91 80 6749 6328; Reuters Messaging:sruthi.shankar.reuters.com@reuters.net))

This article appears in: Politics , World Markets , US Markets , Stocks
Referenced Symbols: AAPL ,

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