U.S. stocks trade mixed amid upbeat data

U.S. stocks traded mixed around midday Tuesday, as Wall Street digested positive consumer spending data after the Memorial Day holiday.

By noon, the Dow Jones Industrial Average lost 85.23 points, or 0.48 percent, to 17,787.99. The S&P 500 fell 4.13 points, or 0.20 percent, to 2,094.93. The Nasdaq Composite Index edged up 4.51 points, or 0.09 percent, to 4,938.01.

U.S. personal consumption expenditures (PCE) increased 119.2 billion U.S. dollars, or 1.0 percent, in April, beating a market consensus of 0.7 percent, the Commerce Department announced Tuesday.

In April, personal income increased 69.8 billion dollars, or by 0.4 percent, and disposable personal income (DPI) increased 63.5 billion dollars, or by 0.5 percent.

"The first quarter spending slump is now confirmed to be transitory, and the second quarter rebound is now confirmed to be underway. Second quarter real consumption could top 4% for the first time since the fourth quarter of 2014," said Jay Morelock, an economist at FTN Financial, in a note.

Investors were still assessing the possibility of a June rate hike by the Federal Reserve. On Friday, U.S. Fed Chair Janet Yellen said at Harvard University that an interest rate hike in the next few months would probably be appropriate if economic data improved.

Traders will also keep a close eye on Friday's non-farm employment report, which is seen as the most significant economic release before the Fed's June policy meeting.

On Friday, U.S. stocks rallied as investors assessed Yellen's comments and the newly-released U.S. economic growth data. Endit