The first of the 2-day October Fed meeting yielded no decision on interest rates and the anxiously awaited Apple Q3 report did not come until after close.  So it was yet another quiet day as everyone stays on the sidelines awaiting tomorrow's news, with a modest daily decline of 41 points due to more selling of Apple against expectations of a bad report and further news of excess inventories in the nation's oil supply, bringing the price of crude down still again.  The odds makers give it a 7% chance that the Fed will announce an interest rate hike.  However, if they're wrong -- and the Fed has consistently stated that there probably will be a rate hike by December -- then it will be a game changer.

Apple's report did come right after close and, contrary to expectations, it was nothing but stellar news.  Not only did they not lose sales and profits as was widely expected but actually outdid last year's record sales, mainly due to the terrific performance of the new iPhone.  There is likely to be a lot of buying tomorrow as Apple's success today should placate skeptical investors who have been leery of the impact of China's economy on U.S. companies.  With the reaction to Apple (and its implications for international companies) and the conclusion of the Fed meeting tomorrow, plus the GDP report due on Thursday, the remainder of this week is going to be very interesting.  Tuesday's volume was a little above average at 7.3 billion.

Apple outlook, profit pleases Wall Street as iPhone sales surge | Reuters

Markets | Tue Oct 27, 2015 4:14pm EDT

Stocks retreat ahead of Apple, Fed; oil drop continues

NEW YORK | BY CHUCK MIKOLAJCZAK

DJ:  17,581.43  -41.62        NAS: 5,030.15  -4.56          S&P:  2,065.89  -5.29

REUTERS/LUCAS JACKSON

Global equity markets retreated for a second straight session on Tuesday as investors were cautious ahead of earnings from Apple and a U.S. Federal Reserve policy statement, while crude prices slumped to multi-week lows on growing oversupply concerns.

The S&P 500 .SPX closed lower as investors awaited Apple earnings after the closing bell in an effort to gauge global demand. Investors were also bracing for the conclusion of the Fed's two-day meeting on Wednesday for signs on the timing of an interest rate hike.

"It’s an incredibly busy week, with the Fed tomorrow followed by GDP on Thursday. We are right in the heart of earnings and the market has just run 10 percent uninterrupted," said Patrick Schaffer, global investment specialist at JP Morgan Private Bank in Los Angeles.

"So ahead of a bellwether reporting tonight, why buy it?"

Prior to declines this week, the benchmark index had rallied more than 10 percent from the end of September.

European shares fell following a profit warning from BASF (BASFn.DE). The world's largest chemicals firm blamed struggling emerging markets like China and Brazil.

The Dow Jones industrial average .DJI fell 41.62 points, or 0.24 percent, to 17,581.43, the S&P 500 .SPX lost 5.29 points, or 0.26 percent, to 2,065.89 and the Nasdaq Composite.IXIC dropped 4.56 points, or 0.09 percent, to 5,030.15.

MSCI's all-country world index .MIWD00000PUS of the equity performance of 46 countries lost 0.57 percent, its second straight decline, while the pan-regional FTSEurofirst 300 .FTEU3index, tracking Europe's 300 largest companies, closed down 1 percent.

Markets are pricing in only around a 7 percent chance the U.S. central bank will raise rates this week and many market participants believe the Fed will hold off until 2016, but investors will be watching for signals the central bank might act at its next meeting in December.

APPLE ON DECK

Apple (AAPL.O) dipped 0.6 percent to $114.55 ahead of its results, with investors anxious to hear how many new phones it has been selling after supplier Manz (M5ZG.DE) cut its guidance.

Alibaba (BABA.N) shares climbed 4 percent to $79.44 after the China-focused e-commerce giant reported better-than-expected revenue.

But BASF, whose products range from car coatings to mining acids, blamed the pressures facing major emerging markets like China and Brazil for the profit warning that knocked its shares 5 percent lower.

Prices of 10-year Treasuries US10YT=RR were up 8/32 to yield 2.0317 percent after a drop in durable goods orders for September was the latest data point to indicate the economy slowed in the third quarter.

Oil prices fell for a third straight day, with Brent touching a six-week low, as worries over persistent oversupply grew ahead of U.S. data that was expected to show another increase in crude inventories. Brent crude settled down 1.5 percent to $46.81 a barrel while U.S. crude settled 2.8 percent lower at $43.20.

Against a basket of currencies, the dollar was up 0.06 percent at 96.915 .DXY. The greenback had briefly dipped into negative territory after a private gauge of U.S. consumer confidence unexpectedly fell in October.

Note:  Reuters did not report volume today but from the BATS Exchange, 7.3 billion shares changed hands, a little above average.