* Apple, Alphabet and Microsoft report earnings this week
* Hasbro rises on strong results, Tesla awaited
* AON up, Willis down after $30 bln merger falls through
* Indexes: Dow down 0.13%, S&P flat, Nasdaq down 0.08%
July 26 (Reuters) - U.S. stock indexes fell from record
highs on Monday as locally listed Chinese firms tumbled on
tighter regulations in the mainland, marking a poor start to a
week packed with technology earnings and a Federal Reserve
China last week announced sweeping new rules on private
tutoring and online education firms, the latest in a series of
crackdowns on the technology sector that have roiled financial
markets this year.
E-commerce major Alibaba Group and search engine
Baidu Inc, two of the largest listed Chinese stocks in
the United States, slipped more than 5% each.
A two-day meeting of the Fed starting on Tuesday will also
be watched by investors for more clues on the central bank's
planned tightening of monetary policy, given that inflation has
been accelerating sharply in recent months.
The S&P 500 has tended to perform poorly in weeks
with a Fed meeting this year due to fears that the central bank
could signal an earlier-than-anticipated trimming of its massive
"The Fed is not going to be explicit in its language and the
market is going to pay more keen attention to the more local
voices from the Fed to get a better idea on the interest rate
cycle," said Sean O'Hara, president at Pacer ETFs.
"If we start seeing any signs of a less supportive Fed,
it'll be a cause for concern."
At 9:46 a.m. ET, the Dow Jones Industrial Average was
down 46.82 points, or 0.13%, at 35,014.73, the S&P 500
was down 0.16 points at 4,411.63. The Nasdaq Composite
was down 12.54 points, or 0.08%, at 14,824.46.
Heavyweight technology stocks, including Alphabet Inc
, Apple Inc and Microsoft Corp, are
set to report their earnings this week.
"Everybody is expecting earnings to be robust mainly due to
easy comparables from last year, and if that trend were to
change, it would definitely be a negative for markets," O'Hara
Ride-sharing app Didi Global, whose takedown
earlier this month had brought Chinese regulatory concerns back
to the fore, fell 2.0%.
Recent losses in Chinese stocks have been steeper than those
recorded during the height of the Sino-U.S. trade war in 2018,
mainly due to Beijing's targeting of large technology firms.
Among major earnings on Monday, toymaker Hasbro Inc
rose 9.3% after it posted a better-than-expected 54% jump in
Electric-car maker Tesla Inc rose 1.1% ahead of its
second-quarter earnings report after the market closes.
UK-based Insurance broker AON Plc rose 6.5% after
agreeing to terminate its $30 billion merger agreement with
rival Willis Towers Watson Plc, whose shares fell 5.2%.
Advancing issues outnumbered decliners by a 1.36-to-1 ratio
on the NYSE and by a 1.17-to-1 ratio on the Nasdaq.
The S&P index recorded 36 new 52-week highs and no new lows,
while the Nasdaq recorded 40 new highs and 75 new lows.
(Reporting by Ambar Warrick in Bengaluru; Editing by Aditya