US open: Dow edges higher ahead of FOMC's two-day meeting

US equities were mixed early on Tuesday, ahead of a highly anticipated Federal Reserve meeting.

Just after 1500 BST, the Dow Jones Industrial Average was up 45.06 points to 17,485.65, while the S&P 500 climbed five points and the Nasdaq was off by three points.

Fed meeting kicks off

The Fed’s two-day meeting kicks off on Tuesday, with a statement that could potentially offer some clues over the timing of the first rate hike due out at 19:00 BST on Wednesday.

“The Federal Reserve has been intentionally vague in relation to when interest rates will rise, but traders view this as a sign that the US central bank is in no hurry to push rates higher,” said IG’s market analyst David Madden.

“There’s a feeling among traders that Janet Yellen is paying lip service to the idea of a 2015 rate hike, and any hawkish comments are intended as a warning rather than an actual heads-up.”

Away from the FOMC meeting, US house prices climbed 1.1% month-on-month in May, according to the Case-Shiller 20-city composite index released on Tuesday.

Meanwhile, the US service sector expanded at a faster rate in July but confidence over the business outlook fell to a three-year low, data released on Tuesday showed.

The Markit Flash US Services Purchasing Managers Business Index rose to 55.2 in July, rebounding slightly from the five-month low recorded in June and remained above the 50.0 threshold that signal expansion.

US consumer confidence suffered a sharp setback in July, retreating to its lowest since September 2014.

The University of Michigan’s consumer confidence gauge retreated to a reading of 90.9 from a previous month's reading of 99.8, falling short of analysts expectations for a 100.0 reading.

Twitter earnings in focus

In company news, technology firm DuPont fell 4.58% after reporting early on Tuesday that its second quarter revenue declined.

The group posted a slight increase in adjusted earnings per share, although the figures fell short of forecasts, while JetBlue Airways fell 1.88% despite posting an increase in quarterly revenue thanks to lower fuel prices.

Automotive giant Ford climbed 1.75% after its net income jumped in the second quarter, as its North American business recorded its largest-ever quarterly profit, while delivery group United Parcel Service jumped 4.15% after posting better-than-expected second quarter earnings.

After the closing bell, all the attention will focus on Twitter, with the social media giant expected to report its second quarter earnings per share have doubled from a year ago.

“It will be the first the first quarterly earnings report for Twitter without chief executive Dick Costello,” said CMC Markets’ analyst Jasper Lawler.

“Interim CEO and company co-founder Jack Dorsey is unlikely to have been able to institute any big turnaround in user growth and engagement since Costello’s exit.

“This is reflected in the relatively weak expectations for revenue and profit growth.”

Dollar mixed, oil prices mixed

Elsewhere, the dollar lost 0.17% against the pound but gained 0.29% against the yen and 0.47% against the euro, while gold futures slid 0.05% to $1,096.30.

Most Asian indices remained in the red following heavy losses in China on Monday, while most European equities rose.

Oil prices were mixed, with West Texas Intermediate edging 0.08% higher to $47.43 a barrel, while Brent shed 1.12% to $52.88 a barrel.