Investing.com – Wall Street followed European stock markets lower on Tuesday as disappointing data on China’s manufacturing activity weighed on investor sentiment and oil performed an about-face falling close to 3%.
At 15:24GMT, or 13:24ET, the Dow Jones lost 202 points, or 1.13%, while the S&P 500 fell 25 points, or 1.21%, and the tech-heavy Nasdaq Composite traded down 64 points, or 1.32%.
China’s Caixin manufacturing purchasing managers’ index ticked down to 49.4 in April from 49.7 the previous month, compared to expectations for a rise to 49.9.
The reading below 50 pointed to a continuation of the deceleration in the world’s second largest economy as it marked the 14 consecutive month of contraction in Chinese manufacturing activity.
Stateside, the economic calendar was light with the April Institute for Supply Management’s New York City report on business showing mixed readings.
The current business conditions indicator hit its highest level since December, but the six-month outlook dropped to a seven-year low.
With the Fed funds futures pricing in only a 13% chance of a rate hike at the Federal Reserve’s June 14-15 meeting, traders were eyeing a series of appearances by members of the U.S. central bank.
After the market close on Monday, San Francisco Fed president John Williams said any rate hikes by central banks world-wide will trend lower than in the past.
Williams was scheduled for an interview with Bloomberg radio at 18:00GMT, or 14:00ET.
Atlanta Fed chief Dennis Lockhart said that markets were underestimating the possibility of a rate hike at the June meeting and backed the possibility of two increases this year, though he admitted there was uncertainty about whether the Fed would have enough data before the next monetary policy decision.
Lockhart was slated to give a speech on the economic outlook and monetary policy after the U.S. market close at 23:00GMT, or 19:00ET.
Cleveland Fed president Loretta Mester was chairing a panel on how monetary policy affects market liquidity and reportedly commented that there was clear evidence that quantitative easing was not infinite, according to ForexLive.
In company news, Pfizer (NYSE:PFE) led the Dow higher after the largest U.S. drugmaker beat on earnings and raised its 2016 guidance.
Also among the few blue-chip companies trading in the green, Apple (NASDAQ:AAPL) rose 0.7%, breaking what had been an eight-day consecutive losing streak that was its first since 1998.
Among big movers on earnings news, Halliburton (NYSE:HAL) slumped more than 3% as the oilfield services firm posted a wider loss and said it would seek acquisitions in light of the failed merger with Baker Hughes Incorporated (NYSE:BHI).
New York Times Company (NYSE:NYT) lost more than 3% as the newspaper company posted lower revenue due to the drop in ad sales.
Outside earnings, both Ford Motor Company (NYSE:F) and General Motors (NYSE:GM) dropped nearly 2% after reporting April U.S. vehicle sales that missed analyst estimates.
Total vehicle sales for April were due to be released at 20:00GMT, or 16:00ET.
In currency markets, the dollar managed to bounce back after hitting 16-month lows on Tuesday.
At 15:27GMT or 11:27AM ET, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, traded up 0.40% at 92.90.
Oil had traded 1% higher earlier on Tuesday, but turned around on reports of rising production in the Middle East and North Sea and the recovery in the dollar.
Investors looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.5 million barrels in the week ended April 29.
U.S. crude futures, meanwhile, fell 2.72% to $44.76 a barrel by 15:28GMT, or 11:28ET, while Brent oil lost 2.18% to $44.83.