Investing.com -- U.S. stocks fell slightly on Monday in the wake of a wave of a disappointing earnings last week, as investors await the release of Apple's quarterly earnings, as well as a pair of interest rate decisions from key central banks over the next several days.
The Dow Jones Industrial Average fell 26.51 or 0.15% to 17,977.24, while the S&P 500 Composite index lost 3.79 or 0.18% to 2,087.79, as downbeat earnings from a host of prominent companies continued to weigh on both indices. The Dow closed below 18,000 for the second time in three sessions. On the S&P 500, six of 10 sectors closed in the red, as stocks in the Energy and the Basic Materials sectors lagged. Stocks in the Telecommunications and Consumer Goods industries led, each gaining more than 0.30% on the session.
The NASDAQ Composite index, meanwhile, dipped 10.44 or 0.21% to 4,895.79, extending its losing streak a third consecutive session. When Apple (NASDAQ:AAPL) reports its second quarter earnings on Tuesday, the tech giant could announce its first quarterly earnings decline in more than a dozen years. Many analysts expect Apple earnings to tumble, amid weakening demand in the iPhone. Apple is expected to report earnings per share of 2.00 on revenue of $52 billion, representing a nearly 10% decline in sales on an annual basis.
On the Dow, McDonald’s Corporation (NYSE:MCD) finished as the top performer after adding 1.96 or 1.56% to 127.46. Last week, the fast-food giant topped analysts' forecasts with first quarterly earnings per share of 1.24 on revenue of $5.90 billion, due primarily to the success of its all-day breakfast initiative. The worst performer was Caterpillar Inc (NYSE:CAT), which fell 1.53 or 1.95% to 76.79. On Friday, Caterpillar (NYSE:CAT) slashed its 2016 profit outlook, amid weak projections within its construction and oil and gas divisions.
The biggest gainer on the NASDAQ was Charter Communications Inc (NASDAQ:CHTR), which jumped 9.03 or 4.56% to 206.94. Shares in Charter Communications surged late in the session, after U.S. federal regulators cleared the company's $78 billion acquisition of Time Warner Cable Inc (NYSE:TWC). The worst performer was Endo International, which lost 3.96 or 11.65% to 30.02, retreating from last week's highs when the specialty drug maker finished as the strongest-performing stock on the NASDAQ on consecutive sessions.
The approval from federal regulators also bolstered Time Warner shares, which rose considerably by 8.31 or 4.13% to close at 209.76. Time Warner ended the session as the top performer on the S&P 500. The worst performer was Perrigo Company, which plummeted 21.95 or 18.09% to 99.40. As expected, Perrigo CEO Joseph Papa left the pharmaceutical company on Monday to take the same position at Valeant Pharmaceuticals International Inc (NYSE:VRX). Shares in Valeant fell 0.81 or 2.24% to 35.18.
Investors also await the release of Procter & Gamble Company (NYSE:PG) and Amazon.com Inc (NASDAQ:AMZN) earnings later this week. On Wednesday, the Federal Reserve will issue its third interest rate decision since its historic rate hike in December. The Federal Open Market Committee (FOMC) is widely expected to leave its benchmark Federal Funds Rate unchanged at its current level between 0.25 and 0.50%.
On the New York Stock Exchange, declining issues outnumbered advancing ones by a 2,057-1,002 margin.