Industrial stocks, which took a beating after Caterpillar's warning on Monday, gained ground. The index rose 1.1 percent, driven by strong reports for 3M Co and defence companies, in turn helping the Dow Jones industrial index stay afloat. Technology stocks fell 0.9 percent with Apple Inc, set to report after market close on Tuesday, dipping 0.6 percent. Amazon.com Inc, Facebook Inc and Microsoft Corp, all scheduled to report later this week, fell more than 2 percent.
"Investors are trading with caution, like they normally do ahead of any big trade negotiation and a central bank event," said Everett Millman, precious metals specialist at Gainesville Coins in Lutz, Florida. In a potential setback to the progress in US-China trade talks, the Justice Department levelled charges against China's telecom giant Huawei days before a high-level meeting between the two countries in Washington, aimed to tackle a prolonged tariff war that has roiled financial markets.
The Federal Reserve begins its two-day monetary policy meeting on Tuesday. After raising rates gradually last year, the central bank is taking a wait-and-see approach to further tightening in the face of an overseas slowdown and market volatility. At 11:21 a.m. ET the Dow Jones Industrial Average was up 23.95 points, or 0.10 percent, at 24,552.17, the S&P 500 was down 7.99 points, or 0.30 percent, at 2,635.86 and the Nasdaq Composite was down 59.09 points, or 0.83 percent, at 7,026.60.
Six of the 11 major S&P sectors were lower. The S&P communication services index fell about 1 percent, dragged down by wireless carrier Verizon Communications Inc, which dipped 2.2 percent after missing quarterly revenue estimates.