* Main European markets dip
* Apple iPhone sales dip spurs consumer health worry
* Fed statement eyed for signal of June rate hike (Updates with European market close)
By Chuck Mikolajczak
NEW YORK, May 3 (Reuters) - World stock markets fell on Wednesday as declines in iPhone sales brought about some concern about consumer health, while the dollar edged higher before a U.S. central bank statement that may signal a rate hike next month.
Apple Inc AAPL.O was down 0.3 percent, paring earlier declines, after it reported a surprise fall in iPhone sales in its fiscal second quarter on Tuesday. The drop came on the heels of a decline in sales for U.S. automakers for April and a soft first-quarter reading on U.S. growth last week. with the decline in iPhone sales, Apple still managed to top earnings estimates in what has been a strong quarter for U.S. companies. Thomson Reuters data shows first-quarter growth is currently expected to be 14.2 percent, the best quarter since 2011, with 357 of S&P 500 companies having reported.
"Despite some isolated incidents, overall the season has been great," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.
"And that's one of the reasons why the indexes are hovering near record levels."
A report by payrolls processor ADP said private employers expanded their payrolls by 177,000 jobs last month, the smallest gain since the 62,000 increase last October as they faced increasing difficulty finding qualified workers. data indicated the pace of growth in the U.S. economy's service sector increased in April, led by a jump in new orders, according to an industry report. Dow Jones Industrial Average .DJI fell 16.43 points, or 0.08 percent, to 20,933.46, the S&P 500 .SPX lost 6 points, or 0.25 percent, to 2,385.17 and the Nasdaq Composite .IXIC dropped 28.98 points, or 0.48 percent, to 6,066.39.
Europe's STOXX 600 index .STOXX lost 0.04 percent to retreat from a 20-month high and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.23 percent.
The U.S. economic data helped push the dollar higher ahead of the Federal Reserve statement.
While the central bank is expected to leave interest rates unchanged later on Wednesday, investors will look for signs it may hike them in June. Traders are currently pricing in a 70.7-percent chance of a hike of at least a quarter-point next month, according to CME's FedWatch tool. dollar index .DXY rose 0.12 percent, with the euro EUR= down 0.12 percent to $1.0914. 10-year notes US10YT=RR last fell 1/32 in price to yield 2.2982 percent, from 2.296 percent late on Tuesday. U.S. Treasury said it is studying the possibility of issuing ultra long-term bonds. prices retreated from earlier highs after U.S. government data showed a smaller-than-expected decline in domestic crude inventories and weak demand for gasoline, feeding concerns about a supply glut. crude CLcv1 fell 0.06 percent to $47.63 per barrel and Brent LCOcv1 was last at $50.59, up 0.26 percent on the day.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets in 2017
http://reut.rs/1WAiOSC Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Global bonds dashboard
http://tmsnrt.rs/2fPTds0 Emerging markets in 2017
http://tmsnrt.rs/2ihRugV
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>