U.S. stocks higher midday on strong housing data

U.S. stocks traded higher around midday Tuesday following the release of a better-than-expected home sales data.

At noon, the Dow Jones Industrial Average was up 4.81 points, or 0.03 percent, to 18,120.85. The S&P 500 gained 1.26 points, or 0.06 percent, to 2,105.68. The Nasdaq Composite Index rose 18.98 points, or 0.38 percent, to 5,029.95.

Sales of new single-family houses in February 2015 were at a seasonally adjusted annual rate of 539,000, the highest level in seven years, according to the U.S. Department of Commerce.

This is 7.8 percent above the revised January rate of 500,000 and is 24.8 percent above the February 2014 estimate of 432,000.

U.S. Consumer Price Index rose 0.2 percent in February on a seasonally adjusted basis, in line with analysts'expectations, the U.S. Labor Department reported Tuesday. A recovery in energy prices during the month is likely to account for part of the rise.

The energy index rose after a long series of declines, increasing 1.0 percent as the gasoline index turned up after falling in recent months.

The so-called core CPI, the index for all items less food and energy, increased 0.2 percent in February, the same increase as in January.

Investors are pondering how the Federal Reserve will react to economic data, as a June interest rate increases from the central bank remains on the table.

Traders kept a close eye on the U.S. dollar as well, which had witnessed big swings recently. The dollar index, which measures the greenback against six major peers, was up 0.27 percent at 97. 295 around midday Tuesday.

The focus is on dollar's moves as the strengthening dollar threatened to cut into U.S. multinational corporate earnings. Endite