NEW YORK — U.S. stocks turned lower in midday trading, erasing an early gain. Trading was quiet as investors waited for a statement from the Federal Reserve later Wednesday.
KEEPING SCORE: The Dow Jones industrial average fell 70 points, or 0.4 percent, to 16,842 as of 12:14 a.m. The Standard & Poor's 500 index sank two points, or 0.1 percent, to 1,967. The Nasdaq composite rose 12 points, or 0.3 percent, to 4,455.
EARNINGS PARADE: Wall Street is in the middle of second-quarter earnings season, when big companies turn in their springtime results and tell investors how they think the rest of the year will shape up. Genworth Financial sank $2.09, or 13 percent, to $14.17 and Goodyear Tire & Rubber fell $1.94, or 7 percent, to $25.63 after turning in results that disappointed investors.
NOT BAD OVERALL: So far, the news has been much better than many expected. More than half of the companies in the S&P 500 have turned in results, and roughly seven out of 10 have reported higher profits than analysts projected, according to S&P Capital IQ.
THE ECONOMY: The Commerce Department said the economy grew at a 4 percent clip in the three months ending in June, helped by spending from businesses and even state and local governments.
WHERE'S THE PARTY: A strong report on the economy is always good news for the stock market over the long haul, said Darrell Cronk, Deputy Chief Investment Officer for Wells Fargo Wealth Management. In the near term, though, investors weigh any good news against an interest-rate move from the Federal Reserve, which ends a two-day policy meeting this afternoon. Fed officials are winding down their support for the economy and could start raising interest rates next year.
"I'd love to get back to where what matters most for the market is the economy not what the latest read is on the Fed," Cronk said.
TWEET: Stronger revenue from Twitter sent the company's stock up 21 percent in early trading. The social-networking company reported a quarterly loss late Tuesday but its revenue more than doubled over the year, thanks to new advertising tools and a surge in traffic from soccer fans following the World Cup. Twitter's stock surged $8.35 to $46.93.
LAYOFFS AND PROFITS: Amgen said Tuesday that it plans to lay off up to 15 percent of its worldwide workforce and close four sites, even as it reported second-quarter results that trounced Wall Street expectations. The drugmaker also raised its forecasts for its 2014 profit and sales. Amgen's stock climbed $6.22, or 5 percent, to $129.52.
BUSY WEEK: It's a busy week for economic news. Besides the Federal Reserve meeting, there's a report on China's manufacturing industry out Thursday, and the U.S. Labor Department releases its monthly jobs report on Friday.
EUROPE: Major markets in Europe drifted lower. Germany's DAX sank 0.6 percent and France's CAC 40 dropped 1.2 percent. Britain's FTSE 100 lost 0.5 percent.
OTHER MARKETS: News of stronger U.S. economic growth sent prices for U.S. government bonds lower. The yield on the 10-year Treasury note jumped to 2.54 percent from 2.46 percent late Tuesday, a big move in the usually placid bond market. Benchmark U.S. crude for September delivery rose 49 cents to $101.53 a barrel.
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AP Business Writers Yuri Kageyama contributed from Tokyo and Steve Rothwell contributed from New York.
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