New York, Aug 16 (AP) Stocks edged lower in morning trading on Wall Street on Tuesday as investors cautiously reviewed mostly encouraging financial results from major retailers.

The S and P 500 fell 0.2 per cent as of 10.26 am Eastern. The Dow Jones Industrial Average rose 79 points, or 0.2 per cent , to 33,991 and the Nasdaq fell 0.9 per cent .

Also Read | Russia Warns of Direct Military Clash With US, Says 'America Acts With No Regard to Security and Interests of Other Countries'.

Walmart jumped 5.7 per cent and after the nation's largest retailer reported strong results that easily topped analysts' forecasts. Home Depot rose 3.2 per cent after also reporting better-than-expected results.

The gains from both companies did much of the heavy lifting for the Dow.

Also Read | Sri Lanka: Chinese Spy Ship ‘Yuan Wang 5’ Docks at Hambantota Port Despite Security Concerns Raised by India (Watch Video).

Retailers and consumer product makers made solid gains, but those were in kept in check by broad losses in technology stocks. Chipmaker Nvidia fell 1.7 per cent .

Bond yields gained ground. The yield on the 10-year Treasury rose to 2.86 per cent from 2.79 per cent late Monday.

European markets were slightly higher and Asian markets closed mixed overnight.

Consumers are facing hottest inflation in 40 years and the latest results from retailers show that spending remains solid.

Wall Street has been concerned that higher prices on everything from food to clothing could eventually stunt the economy's main engine of growth, consumer spending.

Investors will get more updates on the retail sector this week, when Target reports its results on Wednesday.

The Commerce Department releases its July retail sales report on Wednesday. Economists surveyed by FactSet expect modest 0.2 per cent growth from June, when sales rose 1 per cent .

The retail reports are capping off the latest round of corporate earnings, which have been closely watched by investors trying to determine inflation's impact on businesses and consumers, while trying to gauge how Federal Reserve will react.

The central bank is raising interest rates in an effort to slow down economic growth and rein in inflation, though it risks hitting the brakes too hard and veering the economy into a recession.

Investors are looking for any signs that inflation is peaking or cooling in the hopes that the Fed could ease its aggressive rate hike policy.

Stocks had their best month in a year-and-a-half in July and the winning streak has been continuing into August partially on hopes that inflation is easing.

The latest government report on consumer prices showed that inflation essentially stalled from June to July.

Still, trading has been choppy, with major indexes swaying between gains and losses throughout each day. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)