Healthcare stocks led the way south for stocks on Tuesday, as investors awaited news from the Federal Reserve's two-day policy meeting. Bobbi Rebell reports.
Healthcare and energy stocks dragged Wall Street lower as the Fed started its two-day policy meeting, though the Dow managed a modest gain. Andy Chorlton of Schroders: (SOUNDBITE) ANDY CHORLTON, HEAD OF U.S. MULTI-SECTOR FIXED INCOME, SCHRODERS, (ENGLISH) SAYING: "I think, generally, in the markets of the moment, we're seeing such volatility that there's not one factor. It's just people see a bounce in anything, and they take profit." Valeant stock got crushed, and that took down other pharmaceutical stocks. The drugmaker slashed its revenue forecast and posted a surprise quarterly loss. It said growth has slowed in its dermatology, gastrointestinal, and women's health businesses. Also falling: Eli Lilly. The drugmaker said, it would focus on only one of its two goals for its experimental Alzheimer's drug. Morgan Stanley hiked its quarterly outlook for iPhone sales, lifting Apple shares. It said Apple's China business is growing strongly. Children's Place catapulted to a record high. Quarterly profit and sales rose, beating estimates. Mixed news on the economy. Retail sales dipped in February and January data was revised downward. Business inventories edged up in January. And producer prices dropped last month. In Europe, weakness in commodity stocks dragged shares down.