Stocks retreat amid Greece woes, Fed hopes

U.S. stocks squandered most gains Tuesday as Wall Street looked in vain for signs of resolution to Europe's debt crisis and for steps from the Federal Reserve to boost the economy.

After rising as much as 148 points, the Dow Jones industrial average finished up 7.65 points, or 0.07 percent, at 11,408.66. Of its 30 components, 16 advanced, led by a 1.3 percent increase in shares of Home Depot Inc.

The Standard & Poor's 500 index slipped 2 points to 1,202.09, with utilities, health care and telecoms -- defensive sectors -- performing the best.

The Nasdaq composite index dropped 22.59 points to 2,590.24.

In a teleconference during the session, Greek officials and international lenders discussed the next installment of emergency funds viewed as needed to keep the country from defaulting on its debts. Europe stocks gained Tuesday on optimism for an agreement.

The Fed's two-day policy meeting, concluding Wednesday, could have the central bank taking additional steps to bolster the economy.

Many expect the Federal Open Market Committee to opt for a move known as "Operation Twist," which would involve the central bank's selling shorter-term notes and buying longer-term Treasury bonds in an effort to bend the yield curve.

ConAgra Foods Inc.'s shares fell 1.7 percent after the food manufacturer reported a first-quarter profit below Wall Street's expectations but maintained its full-year earnings forecast.

Shares of Oracle Corp. fell 2.3 percent; the business-technology provider reported quarterly results after Tuesday's close.

Wall Street offered little reaction to a Commerce Department report that U.S. housing starts fell 5 percent in August, illustrating a still-troubled industry.

-- MarketWatch