Nasdaq, S&P 500 Edge Higher But Dow Extends Pullback

Following the modest pullback seen in the previous session, stocks showed a lack of direction over the course of the trading day on Tuesday. The major averages bounced back and forth across the unchanged line before eventually ending the day mixed.

While the Nasdaq climbed 59.05 points or 0.4 percent to 16,035.30 and the S&P 500 edged up 8.65 points or 0.2 percent to 5,078.18, the Dow dipped 96.82 points or 0.3 percent to 38,972.41.

Uncertainty about the near-term outlook for the markets contributed to the choppy trading on Wall Street following last week’s advance by the Dow and S&P 500 to new record highs.

Traders also stuck to the sidelines ahead of the release of some key economic data later this week, including a closely watched inflation reading.

The Commerce Department’s report on personal income and spending, which is scheduled to be released on Thursday, includes a reading on consumer price inflation said to be preferred by the Federal Reserve.

The inflation data could have a notable impact on the outlook for interest rates, as Fed officials have said they need greater confidence inflation is slowing before cutting rates.

A report released by the Commerce Department before the start of trading showed a substantial decrease by new orders for U.S. manufactured durable goods saw a substantial decrease in the month of January.

The Commerce Department said durable goods orders plunged by 6.1 percent in January after falling by a revised 0.3 percent in December.

Economists had expected durable goods orders to tumble by 4.5 percent compared to the unchanged reading that had been reported for the previous month.

Excluding a steep drop in orders for transportation equipment, durable goods orders dipped by 0.3 percent in January after edging down by 0.1 percent in December. Ex-transportation orders were expected to rise by 0.2 percent.

Meanwhile, the Conference Board released a report showing an unexpected deterioration in U.S. consumer confidence in the month of…