U.S. stocks waver narrowly amid upbeat data

U.S. stocks traded lower in the morning session Tuesday, as Wall Street digested a string of economic reports that supported the case for a rate hike later this year.

Around midday, the Dow Jones Industrial Average fell 44.14 points, or 0.25 percent, to 17,666.57. The S&P 500 lost 4.24 points, or 0.21 percent, to 2,062.42. The Nasdaq Composite Index edged down 3.98 points, or 0.08 percent, to 4,771.48.

The Consumer Price Index for all urban consumers increased 0.4 percent in April on a seasonally adjusted basis, the U.S. Labor Department reported Tuesday. Over the past 12 months, the all-items index rose 1.1 percent before seasonal adjustment.

The index for all items less food and energy increased 0.2 percent in April after increasing 0.1 percent in March, and it increased 2.1 percent over the past 12 months.

U.S. privately-owned housing starts in April were at a seasonally adjusted annual rate of 1,172,000, beating market consensus, the Commerce Department announced Tuesday.

"Prices increased across the board. That left core CPI above 2% for six consecutive months. The combination of higher prices and housing gains support the narrative of a Q2 rebound in GDP, and will stir talks of the necessity of at least one Fed hike later this year," said Jay Morelock, an economist at FTN Financial.

Meanwhile, U.S. industrial production also beat expectations, which increased 0.7 percent in April after decreases in the previous two months, the Federal Reserve said Tuesday.

On Monday, U.S. stocks posted solid gains as investors cheered over a strong rebound in oil prices. Endit