U.S. stocks trade mixed around midday amid data, diving oil

U.S. stocks traded mixed around midday Friday, as investors digested the country's consumer price data amid a plunge in oil prices.

Around noon, the Dow Jones Industrial Average fell 27.39 points, or 0.17 percent, to 16,386.04. The S&P 500 edged down 0.15 point, or 0.01 percent, to 1,917.68. The Nasdaq Composite Index added 21.91 points, or 0.49 percent, to 4,509.44.

Oil prices traded sharply lower in early trading Friday, with both the U.S. oil and Brent crude slumping about 4 percent, after government data showed a rise in U.S. crude stockpiles.

Oil prices witnessed wild swings recently amid talks of a coordinated plan by producers to freeze output levels.

The U.S. oil has tumbled more than 22 percent over oversupply concerns since the beginning of the year.

On the economic front, the consumer price index (CPI) for all urban consumers was unchanged in January on a seasonally adjusted basis, the U.S. Labor Department reported Friday.

The index for all items less food and energy increased 0.3 percent in January, which increased 2.2 percent over the past 12 months. This is its highest 12-month change since the period ending June 2012 and exceeds the 1.9 percent average annualized increase over the last 10 years.

"The year-over-year headline CPI reading is in skyrocket mode, jumping from 0.7% in December to 1.4% in January. This is what the Fed means when they say the effects of energy and the strong dollar are transitory," said Jay Morelock, an economist at FTN Financial, in a note.

On Thursday, U.S. stocks drifted lower after wavering in a tight range, as oil prices pared early gains amid worries about a global supply glut. Endit