U.S. stocks trade lower amid earnings, data

NEW YORK, May 1 (Xinhua) -- U.S. stocks traded lower on Tuesday as investors digested a slew of corporate earnings reports as well as major economic data.

At midday, the Dow Jones Industrial Average plunged 254.26 points, or 1.05 percent, to 23,908.89. The S&P 500 decreased 13.92 points, or 0.53 percent, to 2,634.13. The Nasdaq Composite Index was down 8.22 points, or 0.12 percent, to 7,058.05.

On the earnings front, first quarter earnings are expected to increase 24.6 percent year-on-year, according to Thomson Reuters' latest estimates released on Monday.

Of the 274 companies in the S&P 500 that have reported earnings to date, 79.2 percent have reported earnings above analyst expectations. This is above the long-term average of 64 percent and above the prior four quarter average of 72 percent, the estimates said.

The first-quarter blended revenue growth estimate is 8.1 percent. Some 73.6 percent of companies have reported revenue above analyst expectations, according to the estimates.

Merck, Pfizer and Aetna all reported stronger-than-forecast results before the bell on Tuesday. However, shares of Merck and Pfizer dropped 2.44 percent and 4.67 percent respectively in morning session.

Investors will also keep a close eye on Apple's earnings report, which will be released Tuesday after the closing bell.

On the economic front, the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers' Index (PMI) registered 56.5 in April, up from 55.6 in March and indicated the strongest manufacturing growth in over three-and-a-half years.

Investors also looked to the Federal Reserve as the central bank began a two-day monetary policy meeting. Market participants are not expecting any interest rates hikes but they will be on the lookout for clues about the central bank's views on inflation and the economy. Enditem