MARKET SNAPSHOT: S&P 500 Drops Below 2,000

By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks were modestly lower on Tuesday as investors remained cautious following strong gains from the past five weeks.

Earnings beats and misses, as well as Apple Inc.'s hotly anticipated product event provided a backdrop to Tuesday's tepid session.

The S&P 500 (SPX) was 6 points, or 0.3%, at 1,995.24. The Dow Jones Industrial Average (DJI) dropped 60 points, or 0.4%, to 17,050.50 at the open. The Nasdaq Composite (RIXF) lost 11 points, or 0.3%, to 4,580.52.

"The S&P 500 continues to consolidate around the technical resistance level of 2,000 and it could do so for a while," said Randy Frederick, managing director of trading & derivatives at Schwab Center for Financial Research.

"We are also at a juncture where stocks are fairly priced, not too expensive, but not too cheap either. In the absence of earnings news or major economic data, it is not unusual to see sideways moves," he added.

Among economic news, small-business sentiment in August nudged up to its second-highest reading since October 2007, a trade group said Tuesday. July job openings ticked down to 4.67 million from to 4.68 million in June. Also read: Michael Sincere on why this stock market will never go down

Stocks to watch: The iPhone maker (AAPL) held its product event near its headquarters in Cupertino, Calif. The company unveiled the newest version of its flagship phone and is expected to unveil a new iWatch wearable device. Shares rose above $100 after gaining 1.8%. Also read: Tim Mullaney on why Apple exemplifies everything that's wrong about Silicon Valley.

McDonald's (MCD) shares fell 1.4% after the fast-food restaurant chain said global comparable sales fell 3.7% in August and blamed "several headwinds" for the decline. The company warned that problems with a supplier in China will hurt third-quarter results. Also read: The secret to a long life? Fast food

Shares of Annie's Inc.(BNNY) rose 38%, on the heels of a similar late-session rally after General Mills Inc. (GIS) offered to buy the organic-foods company for $820 million in cash.

Shares of Pinnacle Foods Inc.(PF) fell 4.2% after the packaged-foods company said some shareholders tied primarily to investment firm Blackstone will sell 15 million common shares.

Barnes & Noble Inc. (BKS) shares were up 4.1% after the bookseller's fiscal second-quarter profit jumped thanks to cost cuts, masking a bigger-than-expected decline in revenue.. Read about more of the day's notable stock moves here.

Other markets:The yield on the 10-year Treasurys(10_YEAR) rose 3 basis points to 2.5%, its highest since the beginning of August on a closing basis. Brent crude oil prices held steady at $100 a barrel, while the dollar charted new highs against the yen (USDJPY) and the euro (EURUSD). Europe stocks posted mild losses, while Asia markets saw mostly modest gains.

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