Indexes end down after mixed day

U.S. stock indexes capped a day of wobbly trading with slight losses Tuesday, erasing some of their modest gains from a day earlier.

The S&P 500 dropped 2.21 points, or 0.1 percent, to 2,793.90. The benchmark index, which has finished higher the past four weeks in a row, broke a two-day winning streak.

The Dow Jones industrial average fell 33.97 points, or 0.1 percent, to 26,057.98. The Nasdaq composite slid 5.16 points, or 0.1 percent, to 7,549.30. The Russell 2000 index of smaller companies gave up 11.32 points, or 0.7 percent, to 1,577.48. Major European indexes finished mostly higher.

The market changed course several times during the day as investors balanced conflicting U.S. economic data and testimony from Federal Reserve Chairman Jerome Powell.

The Fed chief told Congress that the U.S. economy should keep expanding at a solid, though somewhat slower pace this year, and reassured markets that the central bank would be “patient” in raising interest rates.

Stocks got a boost after Powell’s remarks, though it faded toward the end of the day.

Health care, financial and industrial companies took some of the heaviest losses, offsetting gains in technology stocks and retailers.

U.S stocks slipped in early trading after the government reported that the number of homes being built last month plunged to the lowest level in more than two years, the latest sign that the housing market is cooling. Homebuilders traded broadly lower after the report.

That downbeat housing report was countered by a subsequent survey from The Conference Board that shows consumers were far more confident last month than economists had expected. The increase in the index came after three months of declines.

Then the market got help from Powell, who told the Senate Banking Committee that the central bank is taking its time to decide when to change interest rates this year.

“When I say that we are going to be patient what that really means is that we are in no rush to make a judgment about changes in policy,” Powell told the panel. “We are going to be patient. We are going to allow the situation to evolve … and allow the data to come in. And I think we are in a very good place to do that.”

Traders also had their eye on more corporate earnings reports.

A weak housing market helped slam the brakes on growth for home-improvement retailer The Home Depot Inc. The stock slid 0.9 percent after a key sales measure fell short of Wall Street’s forecasts. The company also said it expects weak sales this year. Rival Lowe’s Cos. Inc. is due to report its quarterly results today.

The housing market initially cooled last year as average 30-year mortgage rates climbed to nearly 5 percent. Home prices have consistently risen faster than wages, and the inventory of homes listed for $250,000 or less is tight, suggesting a sluggish market going forward.

Homebuilders also traded lower Tuesday. LGI Homes Inc. led the slide, dropping 4.5 percent.

Macy’s Inc. gained 1.5 percent after the company said it would trim its management structure in a move that could save it $100 million as it gears up for fiercer competition in the retail sector. The department store chain also surged past Wall Street’s profit forecast for the quarter.

The J.M. Smucker Co. gained 5 percent after the food maker reported higher demand for premium products during its most recent quarter. Its results beat Wall Street’s forecasts.

AutoZone Inc. climbed 5.1 percent after the auto-parts retailer’s sales and profit rose in its most recent quarter, surpassing analysts’ expectations.