landsberg bennettThe major averages were mixed Tuesday, as the U.S. and China resumed trade talks and investors awaited key updates from the Federal Reserve. The Dow fell 23 points, while the S&P 500 ticked up 0.1%. The Nasdaq Composite outperformed, ending the session 0.5% higher amid strength from FAANG stocks.

Materials stocks lagged, with Dow Inc. falling 1.3% after German chemical maker BASF issued a pessimistic forward outlook amid lingering trade concerns. The Consumer Staples group also underperformed, with PepsiCo declining 0.6% despite topping analyst profit projections in its quarterly report this morning. In M&A news, Acacia Communications jumped more than 35.0% after agreeing to a $2.6 billion takeover offer from Cisco Systems.

Treasuries weakened, with the yield on the benchmark 10-year note rising one basis point to 2.06% ahead of key central bank updates tomorrow. The Federal Reserve will release the minutes from its June policy meeting tomorrow afternoon at 2 p.m. ET, while Fed Chair Jerome Powell is also scheduled to appear for his semi-annual testimony before Congress Wednesday and Thursday. On the data front, a report this morning showed small business optimism slipped modestly from a seven month high in June. Meanwhile, the Jobs Openings and Labor Turnover Survey (JOLTS) revealed U.S. job decreased more than expected for a second-consecutive month in May.

In commodities, WTI crude oil added 0.5% to finish at $57.96/barrel amid continued tensions between the U.S. and Iran. Gold eased 0.1%, the fifth consecutive daily decline for the yellow metal, to finish at $1399.00/ounce.