MARKET SNAPSHOT: U.S. Stocks End Choppy Trade Lower

By Anora Mahmudova and Carla Mozee, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks ended Tuesday's choppy trading session lower, as investors turned cautious after the EU announced a new round of sanctions against Russia for its role in Ukraine's deadly civil war.

The European Union and the U.S. on Tuesday extended sanction over Eastern Ukraine violence. The E.U. agreed to place sanctions on broad sectors of the Russian economy, EU diplomats said, marking a significant escalation of the bloc's response to allegations that Moscow is fueling violent conflict in eastern Ukraine.

Better-than-expected earnings and upbeat consumer confidence data sent the Dow Jones Industrial Average above 17,000 and the S&P 500 near its record closing level, but gains soon petered out.

The S&P 500 (SPX) closed 5.2 points, or 0.3%, lower at 1,973.10. The Dow Jones Industrial Average (DJI) ended 38 points, or 0.4%, lower at 16,943. The Nasdaq Composite (RIXF) finished 2 points lower at 4,451.06.

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Anthony Valeri, investment strategist at LPL Financial said investors are focused on GDP, ISM and the jobs data to be released in the coming days.

"The FOMC statement is unlikely to change from the previous one and there will be no press conference. If the economy continues to improve, we expect companies to grow their revenues and earnings. We also expect the market to continue a slow grind higher by the year-end," Valeri said.

Tuesday's economic news had little impact on markets. Consumer confidence index jumped unexpectedly to 90.9 in July, the highest since October 2007.

Separately, a report from the Case-Shiller 20-city composite index showed U.S. house prices rose in May, with every city showing gains. Prices fell on a seasonally adjusted basis, however. Year-over-year growth also slowed down.

Data released Monday showed pending U.S. homes sales fell 1.1% in June, the first decline in four months. That report "confirmed Fed Chair Yellen's remarks before the Senate Banking committee earlier this month about the overall slowdown in the housing sector," wrote Marshall Gittler, head of global FX strategy at IronFX, on Tuesday.

Yellen will lead monetary policy makers in their two-day meeting that started Tuesday morning.

In earnings news, Corning Inc. (GLW) shares ranked 9.6% after the maker of TV-screen glass reported a sharp drop in second-quarter earnings due to acquisition-related costs.

Shares in Herbalife Ltd. (HLF) fell 14%, extending losses from late Monday when the nutritional supplements marketer posted quarterly results that missed Wall Street's targets.

Shares of Merck & Co. (MRK) -- a component of the Dow Jones Industrial Average (DJI) -- rose 1.6% after the drug maker's adjusted earnings and sales surpassed expectations.

Shares of fellow Dow component Pfizer Inc. (PFE) fell 1.1%. The pharmaceutical company's second-quarter results came in ahead of Wall Street's targets, but it lowered its full-year sales outlook.

Wynn Resorts Ltd. (WYNN) shares gained 3%, after earnings per share beat analysts' expectations, but revenue fell short of them.

Aetna (AET) fell 2.9% even as the health insurer raised its 2014 operating earnings projection based on improvement in second-quarter results from the year-earlier period.

Logistics company United Parcel Service Inc. (UPS) dropped 3.4% after missing forecasts and lowering its guidance.

After the regular session ends, Twitter Inc. (TWTR) is slated to release second-quarter results.

In Asia, most major stock markets ended higher, with Japan's Nikkei Average up 0.6%. In Europe, the U.K.'s FTSE 100 edged higher on upbeat earnings reports.

Oil prices (CLU4) turned slightly lower, while gold (GCU4) rose nearly $5. The U.S. dollar index (DXY), which measures the greenback against a basket of six other currencies, rose to 81.061 from 81.025 on Monday.

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