US stocks slipped initially Tuesday after the Labor Department said consumer prices were unchanged May to June, a sign that the recovery has stalled.
The underlying dynamic is the job market. On Monday, the Commerce Department said consumer spending on the retail level fell 0.5 percent in June. The inflation figure released Tuesday was seen as confirmation of that, as flat prices indicate too many consumers are out of work to support price increases.
In midmorning trading in New York, the Dow Jones industrial average started recovering, gaining 11.20 points or 0.09 percent to 12,738.41. The Nasdaq composite was off by 2.04 points or 0.07 percent to 2,894.90. The Standard & Poor's 500 index was up 1.07 points or 0.08 percent to 1,354.71.
The benchmark 10-year U.S. treasury note fell 4/32 to yield 1.49 percent.
The euro fell to $1.2221 against the U.S. dollar from Monday's $1.2272. Against the yen, the dollar rose to 79.04 from Monday's 78.86
In Japan, the Nikkei 225 index added 0.35 percent, 30.88, to 8,755.