US STOCKS-Wall St down for third-straight day as Microsoft drags
* Microsoft down as much as 4.7 pct
* Fed meets Tuesday and Wednesday
* Indexes down: Dow 0.3 pct, S&P 0.36 pct, Nasdaq 0.61 pct (Updates to early afternoon)
By Yashaswini Swamynathan
June 13 (Reuters) - U.S. stocks were lower a day ahead of a Federal Reserve policy meeting as Microsoft shares dragged all three major indexes down after the company said it would buy LinkedIn for $26.2 billion.
Microsoft fell as much as 4.7 percent to a four-month low of $49.05. LinkedIn jumped 46.8 percent to $192.43.
The Federal Reserve Open Market Committee (FOMC) will meet on Tuesday and Wednesday to decide when to raise interest rates for the second time in nearly a decade.
Fed Chair Janet Yellen, who had been dropping hints of a rate hike most of last month, was more vague last week on its timing after dismal May hiring data and a possible Brexit raised concerns about the strength of the economy.
"Today seems to be a very volatile day.... The market is always looking for any message the Fed may have in terms of what they do in July or what the statement may be for the meeting," said Omar Aguilar, chief investment officer at Charles Schwab Investment Management. Continuación...