US STOCKS-Wall Street dips on U.S.-China trade tensions, Fed meeting eyed

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* Fed's rate-setting meeting under way
* Trump fires new warning at China
* P&G rises on quarterly profit beats
* Under Armour slides on N.America rev forecast cut
* Indexes off: Dow 0.10%, S&P 500 0.27%, Nasdaq 0.30%

(Updates prices, comments)
By Shreyashi Sanyal
July 30 (Reuters) - U.S. stocks dipped on Tuesday as
U.S.-China trade worries pressured technology shares, while the
scale of consensus at the Federal Reserve in favor of deeper
cuts in interest rates ate into optimism that drove markets to
record highs last week.
Apple Inc's AAPL.O results after markets close will paint
a clear picture of the impact of trade tensions with China.
Shares of the iPhone maker fell 0.81%, contributing the most to
the tech sector's .SPLRCT 0.45% drop.
"Investors are very concerned about how weak Apple's Chinese
business will do," said Tony Roth, chief investment officer at
Wilmington Trust in Wilmington, Delaware.
As trade talks between the world's two biggest economies
resumed on Tuesday, President Donald Trump warned China against
trying to wait out his first term in office to finalize a deal.

Market participants are now bracing for what message the Fed
will send if it pushes ahead with a well-telegraphed move to
ease policy that has driven Wall Street's main indexes to record
highs in the past few weeks and contributed to the S&P 500
index's 20% gain for the year.
With a quarter-percentage-point cut in rates fully
priced-in, investors will monitor how Fed Chairman Jerome Powell
manages debate about whether the stimulus is necessary and what
that says about the attitude of the U.S. central bank to doing
more in the months ahead. "The Fed has a very strong rationale for cutting interest
rates that is to stimulate growth and inflation, but
policymakers have to resort to justifications to keep the
expansions going," Roth said.
Corporate earnings so far have been robust. With half of all
S&P 500 companies reporting second-quarter results, about 76%
have topped profit estimates, according to Refinitiv data.
Backing the case further for a reduction in borrowing costs
was data from the Commerce Department that showed U.S. consumer
spending and prices rose moderately in June, pointing to slower
economic growth and benign inflation.
The Dow Jones Industrial Average .DJI fell 27.79 points,
or 0.1%, to 27,193.56, and the S&P 500 .SPX lost 8.19 points,
or 0.27%, to 3,012.78. The Nasdaq Composite .IXIC dropped
25.13 points, or 0.3%, to 8,268.20.
Limiting losses on the blue-chip Dow index was Procter &
Gamble Co PG.N , which jumped 4.48% after the consumer goods
maker beat estimates for quarterly revenue.
The financials sector .SPSY fell 0.53%, hit by a decline
in shares of Capital One Financial Corp COF.N after the
credit-card issuer said information for 106 million people had
been compromised. Bank stocks .SPXBK , which tend to benefit from a rising
interest rate environment, dropped 0.32%.
A 5.42% tumble in shares of Pfizer Inc PFE.N weighed the
most on the healthcare index .SPXHC . A couple of brokerages
downgraded the stock after the drugmaker said on Monday it would
spin off its off-patent drugs unit and merge it with Mylan
MYL.O .
Under Armour Inc UAA.N slid 12.78% after the sportswear
maker cut its full-year revenue forecast for North America, its
biggest market. Declining issues outnumbered advancers for a 1.24-to-1 ratio
on the NYSE. Advancing issues outnumbered decliners by a
1.04-to-1 ratio on the Nasdaq.
The S&P index recorded 27 new 52-week highs and one new low,
while the Nasdaq recorded 39 new highs and 65 new lows.