Dow slips on weak McDonald's earnings

The Dow finished in the red Tuesday, in part due to disappointing results from McDonald's, as investors awaited a policy announcement by the US Federal Reserve.

McDonald's shed 4.5 percent as it reported a 9.1 percent drop in second-quarter earnings $1.09 billion, due to a $230 million charge from refranchising operations and tepid growth across its markets.

Analysts expect the Fed to keep US interest rates low when it makes its policy announcement on Wednesday. But many say the central bank could signal a greater likelihood of rate hikes later in the year.

The Dow Jones Industrial Average lost 0.1 percent at 18,473.75.

The broad-based S&P 500 rose less than 0.1 percent to 2,169.18, while the tech-rich Nasdaq Composite Index gained 0.2 percent to 5,110.05.

McDonald's fell the most among a heavy slate of Dow companies that reported earnings. Among other blue chips to release earnings, DuPont rose 0.4 percent, 3M fell 1.1 percent and Verizon shed 1.9 percent.

Caterpillar, another Dow member, jumped 5.2 percent after signaling it would cut more jobs in response to the sustained downturn in investment by oil and mining companies, while United Technologies advanced 3.1 percent as it lifted its full-year forecast.

Under Armour tumbled 5.1 percent as second-quarter net income fell 57 percent to $6.3 million, despite a 27.7 percent rise in revenues to $1 billion. Credit Suisse said the results underscored worries about profitability as the sports apparel company expands rapidly.

Gilead Sciences slumped 8.5 percent after trimming its full-year forecast following a second-quarter drop in sales and net income. The biotech company's results were hit by disappointing sales of its Harvoni medication to treat hepatitis C.

In non-earnings news, Netflix jumped 4.3 percent on news it signed a deal with 20th Century Fox to be the global streaming home for the Emmy-nominated smash hit "American Crime Story."