DJI- NEW YORK, July 31 (Reuters) - U.S. stocks fell on Tuesday with traders' sights set again on Wednesday's Federal Reserve statement on the economy and a possible new round of stimulus.
The Nasdaq Composite, which underperformed on Monday, was the smallest decliner among the three major U.S. stock indexes in Tuesday's session, thanks in part to Apple AAPL.O shares' gain of 2.6 percent after a source said a new product will makes its debut at an event in September. (Full Story) Apple closed at $610.76.
Volume was below average as Wall Street wrapped up its second consecutive positive month, with most of the monthly gains accumulated last week on hopes for more action from both the Fed and the European Central Bank. The ECB will meet on Thursday.
"Markets seem to be moving on talk, but I don't think that's going to be enough in the next few days," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto. "I think the market risks being disappointed in terms of substance."
For the month of July, the Dow rose 1 percent, while the S&P 500 climbed 1.3 percent and the Nasdaq added 0.2 percent. After seven months, the S&P 500 has gained nearly 10 percent for the year, despite a slowing world economy.
In Tuesday's session, the Dow Jones industrial average .DJI fell 64.33 points, or 0.49 percent, to 13,008.68 at the close. The S&P 500 Index .SPX dropped 5.98 points, or 0.43 percent, to 1,379.32. The Nasdaq Composite .IXIC lost 6.32 points, or 0.21 percent, to 2,939.52.
About 6.5 billion shares changed hands on the New York Stock Exchange, the Nasdaq and Amex, below the 2012 daily average of 6.74 billion through Monday's close.
Roughly seven issues fell for every five that rose on both the New York Stock Exchange and the Nasdaq.
Facebook FB.O shares slid 6.2 percent to $21.71, their third consecutive record closing low, after a lackluster quarterly report last week showed decelerating user growth.
According to Thomson Reuters data through Tuesday morning, of the 321 companies in the S&P 500 that have reported second-quarter earnings to date, 67.3 percent have reported earnings above analysts' expectations. Over the past four quarters, the average beat rate is 68 percent.
U.S. home prices rose for the fourth month in a row in May, suggesting the housing market's recovery kept gaining traction, even as the broader economy is still struggling. Other data showed consumer confidence unexpectedly rose in July but spending fell in June for the first time in nearly a year as Americans saved more.
NYMEX- NEW YORK, July 31 (Reuters) - U.S. crude oil futures fell for a second straight session Tuesday as investor hopes were fading that potential stimulus measures from the U.S. and Europe would be enough to lift economic growth.
CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade ended mixed after a choppy session, with the front four contracts down on profit-taking at the end of the month, traders said.
* Front-month soymeal SMc1 set an all-time high at $554.20 per ton before paring gains.
• For the month, CBOT soybeans Sc1 unofficially rose 13.7 percent. Soymeal SMc1 rose 25 percent -- its biggest monthly gain in four years -- while soyoil trailed, gaining 0.7 percent.
• Soybeans were underpinned by worries about declining U.S. crop prospects. USDA on Monday said 29 percent of the U.S. soybean crop was rated good/excellent, down two points from the previous week and the lowest rating in 24 years. (nL2E8IU493)
• A Reuters poll of 13 analysts pegged the U.S. 2012 soybean yield at 38.1 bushels per acre, down 1.2 percent from last week and the lowest figure in nine years. They poll projected soybean production at 2.834 billion bushels, down 2.2 percent from last week and a four-year low. (nL2E8IVA2J)
• Updated midday weather models suggested a slightly wetter pattern for the U.S. Midwest where crops have withered under an extensive drought, but rainfall will be only scattered and light - agricultural meteorologists. (nL2E8IV33Q)
• An official with trading firm INTL FCStone said U.S. soybean yields may fall to as low as 34-35 bushels per acre without rain in the next two weeks, below the firm's current forecast of 37-38 bushels per acre. (nL4E8IV2ED)
• Soybean prices are likely to stay high in coming months even if rain relieves drought-stricken U.S. crops as U.S. suppliers limit sales to manage supplies - analysts Oil World. (nL6E8IU7LI)
• India, facing drought, took steps to cut irrigation costs and increase fodder supplies for livestock farmers but held off from imposing any curb on exports of agricultural products or a ban of futures trading in them. India is the world's No. 4 soymeal exporter, after Argentina, Brazil and the United States.
• CBOT reported no deliveries of soybeans or soymeal on first notice day for August futures contracts, as traders expected. Soyoil deliveries totaled 3,052 contracts, above trade expectations for 1,000 to 2,000 lots.
FCPO- SINGAPORE, July 31 (Reuters) - Malaysian crude palm oil edged lower on Tuesday, posting its third successive monthly loss, as weak July exports offset a downgrade of soy crop conditions by the U.S. Department of Agriculture that fed fears of tighter global oilseed supplies.
The USDA rated 29 percent of the soybean crop as good-to-excellent on Monday, down 2 percentage points from the previous week, reflecting damage from persistent drought in the U.S. Midwest. (nL2E8IU493)
But palm oil futures retreated from a one-week high hit the previous day as traders priced in a monthly decline in Malaysian palm oil exports that could ease stocks.
"Exports are worse than expected," said a dealer with a foreign commodities brokerage in Kuala Lumpur. "Hopefully crude palm oil exports will pick up after the release of the tax-free quota or else stocks might climb back up to the 2-million-tonne mark."
Benchmark October palm oil futures FCPOc3 on the Bursa Malaysia Derivatives Exchange lost 0.8 percent to close at 2,980 ringgit ($953) per tonne. Prices touched 3,007 ringgit on Monday, the highest level since July 23.
Crude palm oil futures lost 1.3 percent in July, marking their third monthly loss in a row.
Traded volumes stood at 34,609 lots of 25 tonnes each, higher than the usual 25,000 lots.
On the technicals front, palm oil will retrace to 2,930 ringgit as it has completed a rebound from 2,880 ringgit, Reuters market analyst Wang Tao said. (nL4E8IV1FE)
Cargo surveyor Intertek Testing Services reported July export numbers at 1.23 million tonnes, down 15 percent from 1.45 million in June. Another cargo surveyor, Societe Generale de Surveillance, reported a 19 percent decline for the same period. PALM/ITS PALM/SGS
Reuters reported on Monday that Malaysia would increase shipping quotas for tax free crude palm oil by up to 2 million tonnes this year to help planters cope with higher output in the next few months as the world's No.2 supplier struggles to maintain its export momentum. (nL4E8IU1CT)
In response, industry body the Palm Oil Refiners Association of Malaysia (PORAM) said late on Monday that Malaysian palm oil refining capacity use will fall to less than 60 percent if the government continues with the plans, and the move will jeopardise the refining industry's competitiveness.
REGIONAL EQUITY- BANGKOK, July 31 (Reuters) - Singapore stocks hit their highest in almost a year on Tuesday, posting the best monthly gain since January while Indonesian shares climbed to a nearly three-month high, racking up the biggest monthly gain in nine months amid foreign buying.
Singapore's benchmark Straits Times Index .FTSTI edged up 0.12 percent to 3,036.40, the highest close since August 4. For the month, the index was up 5.5 percent, Southeast Asia's best performer.
Jakarta's Composite Index .JKSE ended up 1.05 percent at 4,142.34, the highest close since May 9. It gained 4.7 percent in July, the second best. This compares with 2 percent, 2.3 percent and 1.2 percent monthly gain for Malaysia, Thailand and the Philippines, respectively.
Indonesia showed a net foreign purchase of $355 million so far in the month to July 30, after two consecutive months of net foreign selling for a combined $1 billion, according to Thomson Reuters data.
The Philippines recorded $551 million worth of net foreign purchase in the month to July 30, including a number of block trades while Thailand posted $38 million worth of net foreign selling for the same period, adding to $650 million of net foreign selling of the past two months, data showed.
