Stocks struggled to remain in positive territory Tuesday after a rise in consumer confidence offset disappointing reports on home prices and earnings.
The Dow Jones Industrial Average was bobbing in and out of positive territory, after ending the previous session at the highest levels since late April. Bank of America , Verizon and AmEx were the top gainers on the index.
The S&P 500 and the Nasdaq were mixed. The CBOE Volatility Index, widely considered the best gauge of fear in the market, traded above 20.
"On a macro-level, investors take to the polls and I'm starting to hear a little bit of rumblings that we might be in a situation of 'buy the rumor, sell the news,'" Jud Pyle, market analyst at PEAK6Investments told CNBC.
"We've had a run-up as investors placed bets that the Republicans might be winning here—we might get a selloff a week from Wednesday, but for now, there's been more buying pressure today," Pyle continued. "Maybe we get a little bit of a selloff, but there's a lot of underlying support to the broad market in general."
Materials led the way down, weighed by soft commodity prices and disappointing earnings results from the steel sector.
Steelmakers were lower across the board after the world’s largest steelmaker ArcelorMittal as well as Pittsburgh-based U.S. Steel warned that demand was slowing, prices were falling and costs were rising. AK Steel also reported weak quarterly results.
Rivals such as world number three Posco and Nucor have already reported lower-than-expected quarterly results, the former cutting its 2010 forecast, the latter warning of uncertainty.
Meanwhile, Ford shares were flat even after the automobile firm posted its sixth straight quarterly profitand the company's best third-quarter performance since at least 1990. The company said its third-quarter net income rose 68 percent.
DuPont tumbled even after the maker of chemicals, building materials and agricultural products posted a higher-than-expected quarterly profitas sales rose in all six business units and across the globe. The Dow component also increased its 2010 earnings forecast above Wall Street's expectations.
Bristol-Myers Squibb posted a slight profit declineas its restrained spending was offset by flat sales of its drugs, lower income from its partners and bigger discounts to government due to the health care overhaul.
And reported an unexpected investment banking loss, sending its U.S.-listed shares down more than 4 percent.
Texas Instruments slipped after the chipmaker said Monday that it expects fourth-quarter revenue to decline from third-quarter levels. In addition, at least three brokerages raised their price targets on the firm.
Coach shares jumped more than 8 percent after the upscale retailer posted a higher-than-expected quarterly profit.
And Royal Caribbean Cruises soared more than 10 percent after the cruise operator posted a better-than-expected profit on stable demand and cost controls and boosted its full-year earnings outlook.
Broadcom , Dreamworks and Massey Energy among a handful of others are expected to report earnings this afternoon.