Wall Street ends flat; economic data offset retailer results

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US stocks ended little changed on Tuesday as declines in Home Depot and other retailers following results offset upbeat US retail sales data.

Home Depot's stock was down 2.7 percent and was the biggest drag on both the S&P 500 and Dow. Although the home improvement chain reported strong earnings and raised its forecast, investors appeared to be worried about supply constraints in the housing market that could be a drag on Home Depot's future earnings.

Shares of smaller rival Lowe's Cos were down 4.4 percent.

The S&P 500 consumer discretionary index, down 0.9 percent, also took a hit from a steep fall in the shares of Coach and Advance Auto Parts after disappointing results. The S&P 500 retail index was down 1.6 percent.

However, US retail sales recorded their biggest increase in seven months in July as consumers boosted purchases of motor vehicles as well as discretionary spending.

The data helped the dollar touch its highest level against a basket of major currencies in nearly three weeks.

"The retail sales numbers that came out today - that's nothing but good news. We had a positive surprise for this month and upward revisions for the past two months," said Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Massachusetts.

"People are spending but they're not spending on the same things. So from an economic perspective, it's all good news. From a company-level perspective, there are winners and there are losers."

The Dow Jones Industrial Average was up 5.28 points, or 0.02 percent, to 21,998.99, the S&P 500 lost 1.23 points, or 0.05 percent, to 2,464.61 and the Nasdaq Composite dropped 7.22 points, or 0.11 percent, to 6,333.01.

The markets had rebounded in the last two sessions after a standoff between the United States and North Korea showed signs of easing.

North Korean leader Kim Jong Un has delayed a decision on firing missiles towards Guam while he waits to see what the United States does, the North's state media reported.