April 27, 2016 / 3:22 PM / 2 years ago

US STOCKS-Apple drags Wall St lower ahead of Fed decision

* Apple falls after revenue slips first time in 13 years

* Twitter slumps 16 pct after revenue misses expectations

* Fed to release statement at 2 p.m. ET

* Indexes down: Dow 0.33 pct, S&P 0.37 pct, Nasdaq 1.18 pct (Adds details, changes comment, updates prices)

By Tanya Agrawal

April 27 (Reuters) - Wall Street was dragged lower on Wednesday, ahead of a policy decision by the U.S. Federal Reserve, after Apple’s first revenue decline in over a decade aroused worries about the health of corporate earnings.

Apple’s shares were down 7 percent at $96.93 and were set for their biggest one-day fall in more than two years. The stock last closed below $100 in February.

Investors are also awaiting a Fed decision on rates at 2 p.m. ET (1800 GMT). No change in rates is expected but the Fed may signal its intention to tighten policy this year.

“Globally, things have gotten much better since the last meeting and I think the market is being too complacent regarding a dovish tone from the Fed,” said Art Hogan, chief market strategist at Wunderlich Securities in New York.

Economists polled by Reuters expect two increases this year but futures prices show traders do not expect rates to rise until late 2016, according to CME Group’s FedWatch.

The Fed next meets on June 14-15. While the labor market continues to gain strength, inflation remains below the central bank’s 2 percent target and mixed economic data could cloud the path to future rate hikes.

At 10:49 a.m. ET (1449 GMT) the Dow Jones industrial average was down 59.54 points, or 0.33 percent, at 17,930.78, the S&P 500 was down 7.7 points, or 0.37 percent, at 2,084 and the Nasdaq Composite was down 57.85 points, or 1.18 percent, at 4,830.43.

Five of the 10 major S&P sectors were lower, with the technology index’s 1.72 percent fall leading the decliners.

Google and Apple were the biggest drags on the sector.

Twitter slumped 15.5 percent to $15.02 after revenue missed expectations. The stock lost about $1.92 billion in value since Tuesday’s close.

Disappointing earnings have slowed down a recent rally but the S&P continues to hold near the record high it set almost a year ago. The index has rallied 15 percent since February.

First-quarter earnings from S&P 500 components are expected to have fallen 7.1 percent from a year earlier, according to Thomson Reuters I/B/E/S. Of the 166 companies that have reported, 59 percent reported revenue above analyst expectations, just short of the average 60 percent since 2002.

Facebook, which was down 1.6 percent, and PayPal are scheduled to report results after the close of market.

Ebay was up 5.6 percent at $25.88 after raising its full-year revenue forecast.

Boston Scientific was up 9.4 percent at $21.55, near a 10-year high, after the medical device maker’s profit beat estimates. The stock provided the biggest boost to the S&P.

DreamWorks Animation rose 16.2 percent to $31.52 after the Wall Street Journal reported Comcast was in talks to buy the Hollywood studio owner.

Advancing issues outnumbered decliners on the NYSE by 1,428 to 1,372. On the Nasdaq, 1,642 issues fell and 930 advanced.

The S&P 500 index showed 16 new 52-week highs and 2 new lows, while the Nasdaq recorded 45 new highs and 11 new lows. (Reporting by Tanya Agrawal; Editing by Don Sebastian)

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