US stocks retreat amid corporate earnings news

US stocks closed mixed as the latest batch of earnings news didnt manage to give the market a fresh sense of direction.

The S&P 500 index added 5.10 points, or 0.28%, to 1843.80, with utilities and materials shares leading gains in eight of 10 sector groups. That reversed an earlier loss of as much as six points. The Nasdaq Composite Index gained 28.18 points, or 0.67%, to 4225.76.The Dow Jones Industrial Average fell 44.12 points, or 0.27%, to 16414.44, after trading down as much as 142 points earlier in the day. On Friday, the Dow rose 42 points, or 0.3%, to post the first weekly gain of the year, despite weakness in the broader market. The stock market was closed Monday for the Martin Luther King Jr. holiday.

European markets advanced, with the regions benchmark index on an early path toward a six-year high, as a Chinese central bank injection of funds to improve liquidity ahead of the Lunar New Year holiday helped offset a surprise decline in economic sentiment in Germany. The Stoxx Europe 600 rose 0.1%. Germanys DAX 30 index added 0.1%, while Frances CAC 40 and the U.K.s FTSE 100 were little changed.

Germanys ZEW economic sentiment index fell for January to 61.7 from 62 in December, versus expectations for a rise to 64. Meanwhile, the current-conditions index rose to 41.2 from Decembers 32.4, above forecasts of 34.

Asian markets gained following Chinas liquidity injection, with Chinas Shanghai composite rallying 0.9% after closing Monday at a near six-month low. Japans Nikkei Stock Average rose 1%, after slipping 0.6% Monday.

In corporate world, Travelers and Verizon Communications VZ reported declines in the Dow after reporting results early Tuesday. Travelers declined despite beating fourth-quarter earnings and revenue expectations amid price increases and fewer claims costs a year after storm Sandy. Analysts noted core margins missed estimates while new business declined.

Verizon Communications said it swung to a fourth-quarter profit as the phone carrier continues to benefit from subscriber growth. Also, it agreed to buy for an undisclosed amount Intels business unit focused on the development of online TV products and services.

Johnson & Johnson fell more than 1% after company said earnings rose 37% but forecast per-share earnings for the year mostly below consensus estimates.

International Business Machines dropped 0.9% after The Wall Street Journal reported the company is in talks to sell its low-end server business to Chinas Lenovo Group. IBM is also due to report earnings after the close.

Delta Air Lines jumped 3.3% after the company said its fourth-quarter earnings soared on an $8 billion non-cash gain related to the reversal of a tax-valuation allowance. The Atlanta-based carrier also said it expects to increase capacity by 2% to 3% in the current quarter.