Stocks slide as all eyes turn to Fed

NEW YORK (CNNMoney)

The Dow Jones industrial average was flat, while the S&P 500 and the Nasdaq drifted lower.

Gross domestic product, the broadest measure of the U.S. economy, grew at just a 0.1% annual pace in the first quarter, the U.S. Bureau of Economic Analysis said. Economists had anticipated that winter weather would take a toll on growth, but the result was worse than most forecasts.

But not all the morning's economic news was bad. Payroll processor ADP (ADP, Fortune 500) said the private sector added 220,000 jobs in April. That's the strongest job growth since November.

Still to come, the Fed wraps up a two-day policy meeting with a decision on interest rates at 2 p.m. ET. The central bank is expected to reduce its asset purchases by another $10 billion.

Twitter tanks

Social media stocks were in focus after Twitter (TWTR) posted uninspiring first quarter results late Tuesday. Twitter shares were down more than 10% in early trading, while Facebook (FB, Fortune 500), LinkedIn (LNKD) and China's Weibo (WB) also fell.

But Energize (ENR)shares jumped 9% after the battery company announced plans to split into two companies, one for Energizer batteries and other household products and another for personal care brands such as Schick and Playtex.

In other corporate news, CNNMoney parent Time Warner (TWC, Fortune 500) reported earnings and sales that topped forecasts, helped by strong revenue from the Lego movie.

Related: Fear & Greed Index shows investors still gripped by fear

Shares of Royal Dutch Shell (RDSA) rose after the oil giant reported better-than-expected quarterly results and hiked its dividend. eBay (EBAY, Fortune 500) shares declined a day after the online marketplace reported disappointing earnings.

Yelp (YELP) is reporting after the bell.

More merger mania

Exelon (EXC, Fortune 500) agreed to acquire rival utility Pepco Holdings (POM, Fortune 500) in a $6.8 billion all-cash deal.

Takeover talk continues overseas, with shares of French company Alstom rallying 8% in Europe after General Electric (GE, Fortune 500) bid $13.5 billion to take over the firm's power divisions. German firm Siemens (SI) may make a counter offer as well.

Related: Five years later, TARP price tag hits $40 billion

U.S. stocks closed higher Tuesday, with the Dow logging its fourth-highest close ever.

Over the course of April, the Nasdaq has declined by just over 2%. The S&P and Dow have eked out minor gains.

Related: CNNMoney's Tech 30

European markets were mixed in morning trading. Asian markets ended with mixed results.

First Published: April 30, 2014: 9:44 AM ET

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