By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks trimmed gains but remained mostly higher Tuesday, with the S&P 500 on track to break a two-day losing streak, after a stronger-than-expected rise in consumer confidence.

The S&P 500 (SPX) trimmed earlier gains but remained up 4.67 points, 0.8%, at 1,862.11. The Dow Jones Industrial Average (DJI) saw a triple-digit jump in earlier action and remained up 75.4 points, or 0.5%, to 16,352.09.

The Nasdaq Composite (RIXF), however, was unable to hang on to an early rise, slipping 1.85 points, or less than 0.1%, to 4,224.53

"Today's economic data were as expected and market reaction has been muted," said Brad Sorensen, director of market and sector research at Schwab Center for Financial Research.

"Markets are waiting for a catalyst to take them higher or lower, as things are once again quiet overseas, earnings season has not started yet and valuations are not too low or high," he added.

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U.S. home prices slipped in January for a third straight month after a particularly harsh winter, according to data released Tuesday, as strong year-over-year appreciation showed signs of moderating.

New U.S. homes sold at an annual rate of 440,000 in February, down 3.3% from January's one-year high, the government said Tuesday. Economists polled by MarketWatch forecast sales to total a seasonally adjusted 440,000.

A gauge of U.S. consumer confidence rose to 82.3 in March from an upwardly revised 78.3 in February, the Conference Board said Tuesday.

Markets were reassured by comments from Philadelphia Fed president Charles Plosser, who said in an interview with CNBC that short-term interest rates should hit 4% at the end of 2016. He also said the market reaction to Federal Reserve Chairwoman Janet Yellen's comments after last week's Federal Open Market Committee meeting was "puzzling." He said her timetable of a rate hike six months after the end of bond buying "wasn't a wildly unexpected time frame." Her comments sparked a selloff for stock markets last Wednesday.

Plosser, who is a voting member of the Fed's policy committee, said the rate forecast isn't aggressive. The Philadelphia Fed chief is due to speak again at 7 p.m. Eastern. Atlanta Federal Reserve President Dennis Lockhart will speak as the market closes at 4 p.m. Eastern.

(CCL)In corporate news, shares in Walt Disney Co. (DIS) slipped 0.3%. Shares had gained ground in earlier action after the media giant said late Monday it was buying Maker Studios for as much as $950 million. The privately held studio is credited with making the Harlem Shake video go viral.

Volatile fuel-cell company stocks rose Tuesday, reversing losses from the previous session. Plug Power Inc. (PLUGD) rose 8% while FuelCell Energy Inc. (FCEL) trimmed its earlier rally but remained up 0.9%.

Himax Technologies Inc. (HIMX) sank 14% after Bank of America Merrill Lynch downgraded the semiconductor maker to underperform, saying the highly competitive market will make margin expansion difficult for Himax, according to news reports.

Walgreen Co. (WAG) rallied 2.4% after the company reported its fiscal second-quarter earnings, which fell slightly from the year-earlier period. The drugstore chain said it would close 76 stores later this year.

Shares of Sonic Corp. (SONC) rallied more than 10% after the company posted a 15% profit gain.

Shares of Carnival Corp (CCL) dropped more than 5% after the cruise company reported that it swung to a fiscal first-quarter loss. Its outlook for the next quarter came in below Wall Street's expectations.

In other markets, stocks in Asia showed a modest pullback, as investors continued to mull downbeat China manufacturing data from the weekend and a slightly disappointing Markit preliminary U.S. purchasing managers index. European stocks pushed higher, shrugging off soft German business-confidence data.

Gold prices (GCM4) were little changed. Oil (CLM4) prices ticked up. The ICE dollar index (DXY) , which measures the U.S. unit against a basket of six major rivals, rose to 80.073, from 79.923 late Monday.

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