By Anora Mahmudova and Wallace Witkowski, MarketWatch

Twitter shares plunge after results; Apple surges after beating expectations

The Dow Jones Industrial Average and the S&P 500 Index closed lower Wednesday, after briefly notching gains on the session, after the Federal Reserve signaled a willingness to raise benchmark interest rates in the fall.

The S&P 500 Index closed down 2.60 points, or 0.1%, at 2,166.58, after trading as high as 2,174.98 intraday. Consumer-staples shares, led by a 3.3% drop in shares of Coca-Cola Co. (KO) , and utilities weighed on the large-cap benchmark.

Energy stocks, off 1%, suffered from a fresh drop in crude-oil prices, while technology and telecom shares advanced slightly.

The Dow Jones Industrial Average slipped 1.58 points to close at 18,472.17, after overcoming an earlier 43-point deficit. The blue-chip index got a boost from Apple Inc.(AAPL), which closed up 6.6% after the iPhone maker late Tuesday posted quarterly profit that dropped from a year ago, but beat expectations (http://www.marketwatch.com/story/apple-earnings-weighed-down-by-iphone-slump-2016-07-26-16485385). Revenue at the world's largest company by market value also fell, yet topped Wall Street's forecasts.

Meanwhile, the Nasdaq Composite Index , partially thanks to Apple, advanced 29.76 points, or 0.6%, to finish up at 5,139.81, its highest close since Dec. 4, 2015.

"Apple is not just a tech company, it is also a consumer discretionary. It represents a pulse for consumer demand," said Diane Jaffee, senior portfolio manager at TCW.

Read:iPhone SE, iPad Pro throw new wrinkle into Apple finances (http://www.marketwatch.com/story/iphone-se-ipad-pro-throw-new-wrinkle-into-apple-finances-2016-07-26)

And:Analysts upbeat on Apple as 'toughest two quarters' now behind it (http://www.marketwatch.com/story/apples-earnings-analysts-upbeat-as-toughest-two-quarters-now-behind-it-2016-07-27)

Read:Why the Fed may want to take away the stock market's punch bowl (http://www.marketwatch.com/story/why-the-fed-may-want-to-lurch-for-the-punch-bowl-2016-07-26)

In its policy statement, the Fed said near-term risks to the economic outlook have been diminished (http://www.marketwatch.com/story/fed-appears-more-open-to-september-rate-hike-2016-07-27), suggesting that a rate hike in September may be appropriate. The probability of that hike, however, swung lower after the statement. According to CME Group's FedWatch tool, the market sees an 18% probability (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html)of a September rate hike, compared with a 30% probability before the statement.

Even though the Fed telegraphed a possible September rate hike, poor durable goods data (http://www.marketwatch.com/story/us-durable-goods-orders-sink-4-in-june-biggest-drop-in-almost-two-years-2016-07-27)may presage a downturn and take a rate hike off the table entirely. Orders for durable or long-lasting goods made in the U.S. sank 4% in June, much more than the 1.7% drop expected by economists polled by MarketWatch.

Of the lack of dissenting viewpoints from Fed members, Naeem Aslam, chief markets analyst at ThinkMarkets, said in emailed comments: "This is despite the fact that we had one of the most terrible durable goods data today and this number is going to drag the US GDP Q3 reading lower. . . . So, if there is a downward revision on the GDP number, the rate hike will be out of question for this year."

Other markets: Oil futures settled down 2.3% at $41.92 a barrel (http://www.marketwatch.com/story/oil-prices-stick-at-three-month-low-gasoline-inventories-are-a-problem-2016-07-27), their lowest level since mid-April, after data showed domestic crude products, notably gasoline, rose unexpectedly.

European stocks were higher while Asian markets were mixed -- with the Nikkei up 1.7%, but Shanghai down 1.9% -- as investors digested conflicting reports (http://www.marketwatch.com/story/dollar-rises-against-yen-amid-conflicting-reports-about-japan-stimulus-2016-07-27) about the Japanese government's soon-to-be-released stimulus measures. Gold futures settled up 0.5% (http://www.marketwatch.com/story/gold-climbs-as-fed-policy-statement-looms-2016-07-27) at $1,326.70 an ounce, while the ICE U.S. Dollar Index was slightly higher.

Economic news: A gauge of pending home sales rose in June (http://www.marketwatch.com/story/pending-home-sales-tick-up-02-in-june-2016-07-27), signaling slow-but-steady momentum for housing despite headwinds in the market.

Individual movers: There was some drama involving brewers. Shares of Molson Coors Brewing(TAP) and Anheuser Busch Invbev NV ADR (ABI.BT) fell 5.1% and 3.7%, respectively, after reports that SABMiller (SAB.JO) has halted integration with ABInBev as it mulls a revised offer.

Alere Inc. (ALR) shares plummeted 29% after a report that the diagnostics company is being subpoenaed by the Justice Department's criminal-fraud unit and will be sold to Abbott Laboratories for $5.8 billion.

Shares in Twitter Inc.(TWTR) fell nearly 15% after the social media company's disappointing earnings report late Tuesday (http://www.marketwatch.com/story/analog-devices-agrees-to-148-billion-deal-for-linear-technology-2016-07-26).

Goodyear Tire & Rubber Co(GT) jumped 4.2% after the company beat earnings estimates.

Linear Technology Corp.(LLTC) shares dropped 5.2% after Analog Devices Inc.(ADI) on Tuesday announced it would acquire its fellow chip maker (http://www.marketwatch.com/story/analog-devices-agrees-to-148-billion-deal-for-linear-technology-2016-07-26) in a cash-and-stock deal worth $14.8 billion.

Coke shares slid after the drinks giant posted weaker-than-expected quarterly sales (http://www.marketwatch.com/story/coca-cola-shares-fall-after-sales-miss-estimates-2016-07-27), while Boeing Co.(BA) gained 0.8% following a smaller-than-anticipated quarterly loss (http://www.marketwatch.com/story/boeing-shares-climb-after-smaller-than-expected-second-quarter-loss-2016-07-27).

Mondelez International Inc (http://www.marketwatch.com/story/mondelez-shares-fall-after-sales-miss-estimates-2016-07-27).(MDLZ) shares fell 2.9% after the food giant reported second-quarter sales that missed estimates.

Comcast Corp.(CMCSA) shares rose 1.1% even as its results beat forecasts (http://www.marketwatch.com/story/comcast-revenue-beats-as-video-subscribers-improve-2016-07-27).

--Victor Reklaitis in London contributed to this article.

(END) Dow Jones Newswires

July 27, 2016 16:31 ET (20:31 GMT)

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