NEW YORK (CNNMoney.com) - Stocks edged lower Tuesday as investors shrugged off a mixed bag of earnings reports and turned their attention to other inflation reports on deck.

The Dow Jones industrial average (down 8.88 to 11,419.89, Charts) fell 0.1 percent. The broader Standard & Poor's 500 (down 2.42 to 1,292.08, Charts) index lost 0.2 percent, while the Nasdaq composite (down 9.39 to 2,229.13, Charts) was down 0.4 percent, to its lowest close for year.

Stocks were higher early in the session as investors cheered signs that inflation may be under control, but turned lower by midday as disappointing sales from retailers overshadowed earlier economic reports.

"Retail stores are coming under pressure," said Art Hogan, chief market strategist at Jefferies & Co. But, for the most part, investors are waiting on more economic data later in the week, including a key report about inflation at the retail level due Wednesday and jobless claims due Thursday.

"Considering the string of data before the Fed meets again (on June 28-29), we could be in for a bit of a roller coaster," Hogan said.

In addition to the Consumer Price Index and jobless claims, investors will be paying close attention to earnings reports from Dell (down $0.57 to $23.78, Research), Gap (down $0.05 to $17.96, Research) and Nordstrom (down $0.85 to $35.92, Research) due later in the week.

After the closing bell, shares of Hewlett-Packard (down $0.52 to $31.11, Research) jumped nearly 5 percent after the computer giant posted a 45 percent quarterly profit increase and handily beat Wall Street analysts' expectations. (Full story.)

Shares of chip equipment maker Applied Materials (up $0.15 to $17.85, Research) were also higher in extended trade after reporting higher quarterly profit and beating expectations.

In earnings news, Home Depot (down $2.05 to $38.45, Research), the nation's largest home improvement retailer, reported a better-than-expected gain in earnings but said sales at retail stores were soft, sending shares down 5 percent and causing the biggest drag on the Dow. (Full story.)

Dow component Wal-Mart Stores (up $0.64 to $48.07, Research) posted improved earnings in the fiscal first quarter, but warned that second-quarter earnings per share would be at or below the current forecast. Shares of the world's largest retailer rose over 1 percent. (Full story.)

Staples (down $1.60 to $24.82, Research) sank 6 percent, weighing on the Nasdaq, after the office supply retailer posted higher quarterly profit despite slow sales growth in North American stores.

Cruise operator Carnival (down $3.94 to $42.60, Research) tumbled 8.5 percent after cutting its outlook because of higher fuel costs and weakness in demand for Caribbean cruises.

And DOV Pharmaceutical (down $4.03 to $3.02, Research) lost 57 percent after the drugmaker said that its first-quarter loss more than doubled as revenue fell and research and development expenses rose.

In other news, Neurocrine Biosciences (down $33.87 to $20.76, Research) plummeted 62 percent after announcing its sleep drug, which it is developing with Pfizer, was rejected by regulators.

Market breadth was positive. On the New York Stock Exchange, advancers topped decliners on volume of 1.7 billion shares. On the Nasdaq, winners narrowly edged out losers as 2.1 billion shares changed hands.

The government said the core Producer Price Index, the measure of inflationary pressure faced by businesses at the wholesale level excluding food and energy, rose by 0.1 percent in April. Economists surveyed by Briefing.com were looking for a 0.2 percent rise.

"Economic growth will remain strong and inflation seems under control, which means the Fed probably has one more tightening ahead of it," said Michelle Clayman, chief investment officer at New Amsterdam Partners.

Housing starts declined to an annual pace of 1.85 million. Economists were looking for a 1.95 million annual pace, compared with 1.96 million in March.

Building permits, seen as an indicator of builder confidence in the market, fell to a 1.98 million annual pace from 2.09 million the previous month. Economists were looking for a decline to 2.04 million.

Treasury prices rose for the second day in a row, lowering the yield on the benchmark 10-year note to 5.10 percent, down from 5.15 percent Monday.

Crude oil for June delivery settled 12 cents higher at $69.53 a barrel on the New York Mercantile Exchange.

COMEX gold for June delivery gained $7.90 to $692.90 an ounce.

The dollar was little changed against the yen and lost ground against the euro.

In global trade, major markets in Asia closed lower Tuesday, while European markets snapped a four-day losing streak.

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