Monday's Market: Dow Sheds 100 Points as Fed Meeting Looms

(Updated from 4:11 p.m. EDT)

Just two days ahead of an expected interest-rate cut, investors sat this session out, sniffing around to see if the Federal Reserve will cut interest rates by 25 or 50 basis points. Meanwhile, they got an unpalatable whiff of more negative earnings news after the close.

Trading volume was very light on both the New York Stock Exchange and the Nasdaq .

"The market will be directionless until the Fed announces its decision," said Seth Tobias, hedge fund manager at Circle T Partners. Tobias expects the central bank to cut the fed funds rate , or the rate at which banks lend to each other overnight, by 50 basis points. "Consumer spending is holding up, but credit spreads are widening." That indicates concern about the ability of borrowers to service their debt. ...