Stocks closed marginally lower on Tuesday as investors weighed ongoing trade negotiations between China and the U.S. along with strong earnings from Target.
The Dow Jones Industrial Average subsided 12.34 to 25,807.31, as shares of Walgreens Boots Alliance dipped more than 2%.
The S&P 500 faded 3.16 points to 2,789.65
The NASDAQ Composite dipped 1.21 points to 7,576.36
On Tuesday, investors cheered stronger-than-expected quarterly results out of retailer Target, sending its shares up around 5%. The company posted earnings per share of $1.53 and revenue of $22.977 billion. Both numbers topped analyst estimates.
Target's same-store sales, a key metric watched by Wall Street, rose 4%. The company also said its digital sales grew by more than 25%.
Kohl's shares also rose 7.3% on better-than-forecast quarterly earnings, which were boosted by strong sales during the holidays. Same-store sales at Kohl's climbed 1% in the previous quarter, well above a 0.3% estimate.
Shares of Willis Towers Watson surged more than 5% after Aon confirmed it was in the "early stages" of considering an all-share combination with the company.
Secretary of State Mike Pompeo said Monday he thought the two countries were "on the cusp" of reaching a deal that would end the trade skirmish.
Pompeo's comments come after sources told media outlets that U.S.-China trade negotiations are in the "final stages" and that a summit in Mar-a-Lago later this month could close the deal.
Prices for the benchmark 10-year U.S. Treasury grew, dropping yields to 2.72% from Monday's 2.73%. Treasury prices and yields move in opposite directions.
Oil prices erased six cents to $56.53 U.S. a barrel.
Gold prices gained $1.20 to $1,288.70 U.S. an ounce.