By Mark DeCambre and Sara Sjolin, MarketWatch

Apple is looking at a $14.5 billion tax bill from Ireland

U.S. stocks closed slightly lower Tuesday as investors weighed additional comments from Federal Reserve members that emphasized the central bank's intention to raise interest rates sooner rather than later.

The S&P 500 index closed down 4.26 points, or 0.2%, at 2,176.12. Among the S&P 500's 10 sectors, only the financial sector ended the day in positive territory, scoring a 0.8% gain on the prospect of higher interest rates. Utilities led the charge lower with a 1% decline.

The Dow Jones Industrial Average declined 48.69 points, or 0.3%, to close at 18,454.30. Shares of banks Goldman Sachs Group Inc. (GS) and J.P. Morgan Chase & Co.(JPM) led the index's gainers, while shares of Boeing Co.(BA) topped blue-chip decliners.

Meanwhile, the Nasdaq Composite Index shed 9.34 points, or 0.2%, to finish at 5,222.99. Overall trade remained subdued and rangebound.

"The best way to describe this trading is treading water and the big question is someone or something going to come save us or are we just going to sink," said Mike Antonelli, equity sales trader at Robert W. Baird & Co.

Federal Reserve Vice Chairman Stanley Fischer said on Bloomberg TV early Tuesday that it is impossible to say whether the next interest rate increase would be "one and done" (http://www.marketwatch.com/story/feds-fischer-on-rates-cant-say-one-and-done-2016-08-30). Fischer's comments underscore remarks he and Fed Chairwoman Janet Yellen made on Friday at a retreat in the Rocky Mountains, indicating that the time to lift rates again was nearing (http://www.marketwatch.com/story/feds-fischer-yellens-speech-consistent-with-possibility-of-2-interest-rate-hikes-this-year-2016-08-26).

Shares of Apple Inc.(AAPL) were in the spotlight after European Union antitrust officials ordered the Irish government to recover (http://www.marketwatch.com/story/apple-benefited-from-145-billion-illegal-tax-break-eu-rules-2016-08-30) as much as 13 billion euros ($14.5 billion) in taxes from the Cupertino, Calif.-based iPhone maker.

Read: Opinion: Get ready for a 5%-10% stock-market drop (http://www.marketwatch.com/story/get-ready-for-a-5-10-stock-market-drop-2016-08-30)

Equities weakened after crude-oil futures pivoted lower (http://www.marketwatch.com/story/oil-prices-nudged-higher-by-bargain-hunting-2016-08-30), with West Texas Intermediate trading on the New York Mercantile Exchange settling down 1.3% at $46.35 a barrel.

See:Oil hits 2-week low on dollar strength (http://www.marketwatch.com/story/oil-prices-nudged-higher-by-bargain-hunting-2016-08-30)

Tuesday's moves were marked by seasonally light volumes and a relatively low reading of volatility, as measured by the CBOE Volatility Index at 13.09. Stock-trading volume hit its lowest level of the year on Monday and continued to be fairly thin as investors and traders typically vacation ahead of the U.S. Labor Day holiday.

"We're kind of stuck in this 2,160 to 2,190 range," Antonelli said referring to the narrow trading range for the S&P 500.

Most market participants said they were waiting for key readings of the labor market on the week, notably the Labor Department's jobs report due Friday. A report on private-sector employment from Automatic Data Processing Inc. is due 8:15 a.m. Eastern Time on Wednesday, but the main event is August nonfarm payrolls.

"I think the market will pause in advance of the [employment report]," said Tom Siomades, head of Hartford Funds Investment Consulting Group.

The U.S. stock market closed higher on Monday (http://www.marketwatch.com/story/worries-about-yellens-jackson-hole-speech-stop-dow-futures-in-their-tracks-2016-08-26), rebounding from Yellen-inspired losses (http://www.marketwatch.com/story/worries-about-yellens-jackson-hole-speech-stop-dow-futures-in-their-tracks-2016-08-26). The S&P 500 index finished up 0.5% Monday, while the Dow industrials ended 0.6% higher.

In her Jackson Hole comments, Yellen said the U.S. economy is improving, strengthening the case for an increase in interest rates this year. The jobs data at the end of the week will be assessed as to how it affects the prospects for tighter policy, and whether that could come as soon as the September meeting. The Fed's policy setting Federal Open Market Committee is set to meet on Sept. 20-21.

Siomades said the market is "coming to the realization that...we might see something this year," referring to a rate increase.

Economic docket: Meanwhile, a consumer confidence index for August came in at 101.1, surpassing forecasts of 97.0 and up from 97.3 in July (http://www.marketwatch.com/story/consumer-confidence-holds-steady-in-july-2016-07-26). Separately, a reading of housing prices came in lower than expected (http://www.marketwatch.com/story/city-by-city-look-at-house-prices-in-june-as-san-franciscos-growth-slows-2016-08-30)for the month, but were still relatively healthy, showing a rise of 5.1% in the 12 months ended in June.

Economists surveyed by The Wall Street Journal had expected a 5.2% increase in the 20-city S&P CoreLogic Case-Shiller Index.

See:

Movers and shakers: Shares of Apple closed down 0.8% after the EU antitrust regulator's allegation that the company's tax arrangement with Ireland allowed it to pay substantially less tax than other businesses over many years.

(https://twitter.com/vestager/status/770561765667110912)

Read:Apple hasn't set aside enough to pay Irish back taxes (http://www.marketwatch.com/story/apple-hasnt-set-aside-enough-to-pay-irish-back-taxes-2016-08-30)

Also read:EU's Vestager: We can win any Apple appeal (http://www.marketwatch.com/story/eus-vestager-we-can-win-any-apple-appeal-2016-08-30)

G-III Apparel Group Ltd.(GIII) shares tumbled almost 21% as the company, whose brands include Calvin Klein and Tommy Hilfiger, lowered its earnings and sales outlook (http://www.marketwatch.com/story/g-iii-apparel-shares-tumble-as-earnings-miss-company-lowers-outlook-2016-08-30).

United Continental Holdings Inc.(UAL) rose 8.6% as the airline late Monday said it has named Scott Kirby as president (http://www.marketwatch.com/story/united-continental-names-former-american-airlines-exec-president-2016-08-29). Kirby was previously president at American Airlines Group Inc.(AAL). Shares of American advanced 2.4%.

Shares of Hershey Co.(HSY) fell 11% after Mondelez International Inc.(MDLZ) said late Monday it has ended its bid to acquire (http://www.marketwatch.com/story/hershey-wanted-at-least-125-a-share-from-mondelez-2016-08-29) the chocolate maker. Mondelez shares finished 4% higher.

Shares of Agrium Inc.(AGU.T) and Potash Corp. of Saskatchewan(POT) rallied to close up 7.7% and nearly 12%, respectively, following a report that the Canadian fertilizer companies are planning a merger. Similarly, Mosaic Co.(MOS) shares jumped 9% as the best performer on the S&P 500 index.

Signet Jewelers Ltd. shares (SIG) declined 0.3% after it was downgraded to neutral from overweight, with a price target cut to $90 at J.P. Morgan Chase & Co.

Abercrombie & Fitch Co.(ANF) shares tumbled more than 20% after the retailer posted a decline in quarterly sales and delivered a weaker-than-expected outlook (http://www.marketwatch.com/story/abercrombie-fitch-sales-dip-offers-soft-outlook-2016-08-30-74854513).

Other markets: Asian markets closed mostly higher (http://www.marketwatch.com/story/asian-markets-get-a-lift-from-us-stock-gains-2016-08-29), rebounding from losses on Monday.

It was a similar story in Europe, where all major indexes traded in positive territory (http://www.marketwatch.com/story/european-stocks-gain-ground-as-euro-drifts-lower-2016-08-30).

The dollar rose firmly against other major currencies, with the ICE Dollar Index climbing 0.5% to 96.06, pushing dollar-pegged assets lower. Gold futures (http://www.marketwatch.com/story/gold-falls-as-the-dollar-trades-at-multiweek-highs-2016-08-30) settled down 0.8% at $1,316.50 an ounce. A stronger buck tends to make commodities priced in the currency more expensive to buyers using other monetary units.

(END) Dow Jones Newswires

August 30, 2016 17:14 ET (21:14 GMT)

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