US STOCKS-Wall Street down on flight from techs; move to value limits loss on Dow, S&P 500

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* Merck slides on warning $2.1 bln hit to FY sales
* Consumer confidence plummets
* Fed's two-day policy meeting convenes
* Indexes drop: Dow 0.13%, S&P 500 0.52%, Nasdaq 1.4%

(Updates to market close)
By Stephen Culp
NEW YORK, April 28 (Reuters) - Wall Street's major indexes
lost ground on Tuesday as investors moved out of market-leading
growth stocks, though a rotation into cyclical value stocks
indicated hopes of economic revival as states began to relax
restrictions enacted to fight the deadly COVID-19 pandemic.
While technology stocks pulled all three major U.S. stock
indexes into the red, they all remained within 20% of their
February all-time highs.
"The stock market today is about money coming out of tech
and going into economically sensitive value stocks, where prices
have suffered the most," said Tim Ghriskey, chief investment
strategist at Inverness Counsel in New York. "The sense that
states are opening up and the economy is beginning to grow
again is causing this rotation."
Smaller companies have fared better than larger ones in
recent days, as they stand to benefit more from the
state-by-state easing of shutdown restrictions. The Russell 2000
.RUT , which tracks small-cap companies, posted its fifth
straight advance.
But with U.S. coronavirus cases topping 1 million, a
predictive model often cited by White House officials warned the
country's death toll could climb higher than previously
projected if states reopen prematurely. First-quarter earnings season has shifted into high gear,
with S&P 500 earnings now expected to be down 14.8% from a year
ago, a dramatic U-turn from the 6.3% year-on-year growth seen on
Jan. 1, according to Refinitiv data.
The U.S. Federal Reserve convenes its two-day monetary
policy meeting to contend with crushing joblessness and an
ailing economy. Consumer confidence plunged in April, with the 'current
conditions' component suffering its largest drop ever, according
to the Conference Board.
"As long as the economy doesn't open up too quickly and
cause the infection rate to increase, it seems like the virus
has peaked and is perhaps on the decline, giving the consumer
hope that the economy will get going again," Ghriskey added.
The Dow Jones Industrial Average .DJI fell 32.23 points,
or 0.13%, to 24,101.55, the S&P 500 .SPX lost 15.09 points, or
0.52%, to 2,863.39 and the Nasdaq Composite .IXIC dropped
122.43 points, or 1.4%, to 8,607.73.
Of the 11 major sectors in the S&P 500, seven closed in the
black, led by energy .SPNY and materials .SPLRCM .
Healthcare stocks .SPXHC dropped 2.1%. Merck & Co MRK.N
warned of a $2.1 billion hit to its 2020 revenue. The
drugmaker's shares dropped 3.3%.
3M, manufacturer of highly sought-after N95 protective
masks, reported better-than-expected quarterly profit, sending
its shares up 2.6%.
Harley-Davidson Inc HOG.N shares jumped 15.2% after the
motorcycle maker took steps to boost cash reserves to contend
with dropping demand due to lockdowns. PepsiCo rose 1.4%, benefiting from rising snack demand due
to stay-at-home orders. Advancing issues outnumbered declining ones on the NYSE by a
2.46-to-1 ratio; on Nasdaq, a 1.38-to-1 ratio favored advancers.
The S&P 500 posted 13 new 52-week highs and 1 new lows; the
Nasdaq Composite recorded 54 new highs and 2 new lows.
Volume on U.S. exchanges was 12.31 billion shares, compared
with the 11.31 billion average over the last 20 trading days.