LIVE MARKETS-US stocks pull in their horns as Fed meeting kicks off

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U.S. STOCKS PULL IN THEIR HORNS AS FED MEETING KICKS OFF

The main U.S. stock indexes are lower early on Tuesday after President Donald Trump's latest plans for pharma tariffs, further dampening investor sentiment amid subdued corporate earnings.

This after the S&P 500 index .SPX ended its longest winning streak since 2004 on Monday.

Trump said late on Monday that he would announce pharma tariffs over the next two weeks, his latest action on levies that have roiled global financial markets over the past months.

Of note, Ford Motor F.N suspended its annual outlook on Monday, joining a host of companies that withdrew their forecasts in April, because of uncertainty around tariffs.

This as the Fed's two-day policy meeting kicks off on Tuesday. According to the CME's FedWatch Tool, there is a 97% probability that the FOMC leaves rates unchanged, and just a 3% chance that it cuts rates by 25 basis points.

Based on interest rate probabilities the market is expecting 81.2 basis points of Fed cuts through year end.

In any event, in Tuesday's early trade, healthcare .SPXHC is the weakest S&P 500 sector. Just utilities .SPLRCU and energy .SPNY are positive.

Under the surface, transports .DJT, regional banks .KRX, and chips .SOX are among weaker groups. Gold stocks .HUI are rallying.

Meanwhile, the SPX, which is now around 5,610, has support at its 50-day moving average, which is now just below 5,570.

Here is a snapshot of where markets stood just shortly after the open:

(Terence Gabriel)

TUESDAY'S EARLIER LIVE MARKETS POSTS:

S&P 500 INDEX'S MOVING AVERAGE WALL TRUMPS WIN STREAK CLICK HERE

HIDDEN RALLY? MARKET BREADTH SURGES TO NEW HIGHS CLICK HERE

EUROPE INC: A 'WAIT AND SEE' REPORTING SEASON CLICK HERE

BANK EARNINGS POSITIVE BUT STOCKS BEHAVING STRANGELY - UBS CLICK HERE

HERE'S WHY THE BOE COULD BE SET FOR A HAWKISH SHIFT CLICK HERE

STOXX SLIPS, GERMANY AND EARNINGS IN FOCUS CLICK HERE

EUROPE BEFORE THE BELL: FUTURES MIXED CLICK HERE

DOLLAR SELLING TAKES A BREATHER CLICK HERE