Among earnings, Tiffany tumbled after the luxury goods retailer missed earnings expectations and slashed its full-year profit forecast, citing difficult economic conditions in addition to tough comparisons to a year ago.
Kroger jumped after the supermarket chain beat earnings forecasts and lifted its profit outlook for the year.
Microsoft announced that it is pricing its new Surface Pro device at $899 for the 64GB version. The device is expected to be released in early 2013.
Research In Motion soared to hit a six-month high after the BlackBerry maker was upgraded to "buy" from "neutral" at Goldman Sachs.
Intel fell to lead the Dow laggards after Goldman Sachs lowered its price target on the firm to $16 from $20.
Macy's, Nordstrom, Kohl's and Target all declined after the retailers missed monthly same-store sales expectations.
On the economic front, pending home sales climbed 5.2 percent in October, surging to its highest level in more than five years, according to the National Association of Realtors.
The economy grew at a 2.7 percent annual rate, faster pace than initially thought in the third quarter, according to the Commerce Department. However, momentum is likely to slow as the nation braces for deep cuts in government spending and tax increases early next year.
And weekly jobless claims declined for a second week, falling 23,000 to a seasonally adjusted 393,000, according to the Labor Department. The Labor Department added there was no pronounced impact of the Hurricane Sandy in last week's data.
The government auctioned $29 billion in 7-year notes at a high yield of 1.045 percent. The bid-to-cover was 2.81.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
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