Stocks slip ahead of Fed decision, oil tops $71 level

U.S. equity markets slid Tuesday as investors digested hot inflation and weak retail sales data while the Federal Reserve kicked off its latest policy meeting. 

Ticker	Security	Last	Change	Change %
I:DJI	DOW JONES AVERAGES	43870.35	+461.88	+1.06%
SP500	S&P 500	5948.71	+31.60	+0.53%
I:COMP	NASDAQ COMPOSITE INDEX	18972.420086	+6.28	+0.03%

The Dow Jones Industrial Average fell 93.96 points, or 0.27%, while the S&P 500 and the Nasdaq Composite declined 0.19% and 0.69%, respectively. The selling came a day after both the S&P 500 and the Nasdaq finished at all-time highs.

Economic data out Tuesday morning showed May retail sales fell 1.3% month over month, missing the 0.8% decline that was expected. Additionally, producer prices last month jumped 6.6% annually, the most on record, and 0.8% month over month. Both numbers were hotter than expected.  

Hot inflation data has investors looking ahead to the conclusion of the Fed's two-day meeting on Wednesday. The central bank is not expected to alter its current policy, but could lay the foundation for tapering its asset purchase program and raising rates. The Fed will also release its updated outlook for inflation, employment and economic growth, among other things. 

Ticker	Security	Last	Change	Change %
BA	THE BOEING CO.	143.41	-2.67	-1.83%

In stocks, Boeing Co. shares were in focus after the U.S. and the E.U. resolved a 17-year-long dispute over aircraft subsidies. The agreement brings an end to tariffs on $11.5 billion of goods including E.U. wine and U.S. tobacco and spirits. 

Ticker	Security	Last	Change	Change %
LUV	SOUTHWEST AIRLINES CO.	31.79	+0.02	+0.06%

Meanwhile, Southwest Airlines Co. flights have resumed after the airline early Tuesday issued a ground stop due to "intermittent performance issues" from third-party weather data.

Ticker	Security	Last	Change	Change %
DIS	THE WALT DISNEY CO.	114.70	+0.44	+0.39%

Fully vaccinated visitors to Walt Disney Co.’s U.S. theme parks will not be required to wear masks in most places beginning on Tuesday.

Ticker	Security	Last	Change	Change %
F	FORD MOTOR CO.	10.81	+0.08	+0.75%

Ford Motor Co. said production and shipments of its Bronco SUV have begun from its Michigan assembly plant. The vehicle was supposed to launch earlier this year, but was delayed due to supply chain issues caused by COVID-19.  

Elsewhere, DraftKings Inc. shares were pressured after Hindenburg Research disclosed a short position, noting its merger with SBTech brought exposure to "extensive dealings in black-market gaming, money laundering and organized crime." 

The sports-betting operator said it conducted a full review of SBTech before its merger and that the accusations are being made by someone who has "incentive to drive down the share price."

Ticker	Security	Last	Change	Change %
DKNG	DRAFTKINGS INC.	43.55	-0.25	-0.57%

In commodities, West Texas Intermediate crude oil climbed $1.24 to $72.12 a barrel and gold slid $9.50 to $1,854.50 an ounce. 

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Overseas markets mostly gained. 

European bourses were higher across the board, with Germany’s DAX 30 and Britain's FTSE 100 both advancing 0.36% and France’s CAC 40 rallying 0.35%. 

In Asia, China’s Shanghai Composite slid 0.92% and Hong Kong’s Hang Seng index fell 0.71%, while Japan’s Nikkei 225 gained 0.96%.