US STOCKS-Wall Street unimpressed by Fed's expected rate cut

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* Fed cuts interest rates by 25 bp as expected
* Fed signals readiness for additional cuts, if needed
* S&P 500, Nasdaq, Dow on track for 2nd straight monthly
gains
* Latest round of U.S.-China trade talks wrap up in Shanghai
* Dow off 0.05%, S&P 500 flat, Nasdaq up 0.10%

(Updates to late afternoon, adds NEW YORK dateline, changes
byline)
By Stephen Culp
NEW YORK, July 31 (Reuters) - Wall Street had a mixed
reaction on Wednesday after the expected interest rate cut by
the U.S. Federal Reserve, the first in a decade, failed to
impress investors.
After spending much of the session in wait-and-see mode
ahead of the Fed's announcement, the S&P 500 and the Dow were
essentially flat, with the Nasdaq slightly higher.
But all were on track to post their second straight monthly
gains, closing the book on a month during which the S&P 500 and
the Nasdaq reached fresh record highs.
Market participants were expecting the central bank to lower
the Fed funds target rate by 25 basis points as insurance
against signs of a looming economic slowdown amid the protracted
U.S.-China trade war.
"It's smart of them to go ahead and take out some insurance
here," said Brett Ewing, chief market strategist at First
Franklin Financial Services in Tallahassee, Florida.
"Typically, the initial market reaction is only a knee
jerk." Ewing added. "What is important to focus on right here is
we will be waiting for the press conference and the dot plot and
taking a look at their guidance."
Trade talks wrapped up in Shanghai, with U.S. and Chinese
negotiators leaving the table without a deal. But both sides
called the talks "constructive." The Dow Jones Industrial Average .DJI fell 12.56 points,
or 0.05%, to 27,185.46, the S&P 500 .SPX lost 0.02 points, or
-0.00%, to 3,013.16 and the Nasdaq Composite .IXIC added 15.38
points, or 0.19%, to 8,289.00.
Of the 11 major sectors in the S&P 500, six were in the
black, with real estate .SPLRCR and energy .SPNY suffering
the largest percentage losses.
Second-quarter earnings season charges ahead, with 296 of
the companies in the S&P 500 having reported. Of those, 74.7%
have surprised Street estimates to the upside, according to
Refinitiv data.
Analysts now see total growth of 1.3% for the quarter, up
from just 0.3% seen at the beginning of the month, per
Refinitiv.
Apple Inc AAPL.O extended its gains, rising 4.3% after an
increase in services and wearables more than offset a drop in
iPhone sales. Humana Inc HUM.N rose 5.3% after the health insurer beat
analysts' second-quarter earnings estimates and hiked its 2019
forecast.
Video game maker Electronic Arts Inc EA.O reported
better-than-expected quarterly revenue, driven by continued
success of its battle royale game "Apex Legends," sending its
stock up 4.4%.
Among losers, shares of General Electric Co GE.N sank
-1.8% after the conglomerate posted a quarterly loss and
announced the retirement of its Chief Financial Officer Jamie
Miller. Chipmaker Advanced Micro Devices Inc AMD.O slumped 8.3%
after its disappointing third-quarter revenue forecast, dragging
the Philadelphia Semiconductor index .SOX down 1.5%.
Molson Coors Brewing Co TAP.N dropped 7.3% after weak
demand hit its quarterly profits. The beer maker also announced
the retirement of Chief Executive Officer Mark Hunter.
On the economic front, The ADP National Employment Report,
showed private employers added 156,000 jobs in July, 4,000 fewer
than economists expect Friday's more comprehensive report from
the U.S. Labor Department to show. Advancing issues outnumbered declining ones on the NYSE by a
1.47-to-1 ratio; on Nasdaq, a 1.38-to-1 ratio favored advancers.
The S&P 500 posted 32 new 52-week highs and 2 new lows; the
Nasdaq Composite recorded 105 new highs and 56 new lows.