The Dow Jones industrial average (INDU) fell 3 points, or less than 0.1%, according to early tallies. The S&P 500 (SPX) closed flat; and the Nasdaq (COMP) added nearly 2 points to 2,719.
"In this environment, the market really punishes you if you miss [earnings], and stocks don't react all that well even when you beat," said Benny Lorenzo, chief executive at Kaufman Bros.
Lorenzo still believes that stocks are headed higher this year, but he acknowledged that questions remain about corporate earnings growth, as more companies warn about rising commodity prices.
"It's going to be very tough for margins to expand, and that's going to be reflected in the market," he said.
Investors were also responding to a sharp drop in home prices, and a stronger-than-expected report on consumer confidence.
In the commodities market, prices for oil and gold futures fell sharply. However, prices for cotton futures rose to a record high amid speculation about tightening supplies and increasing demand from developing economies.
Jean-Claude Trichet, president of the European Central Bank, warned over the weekend that central banks should be wary of rising commodity prices. The comments fueled speculation that the ECB is planning to raise interest rates.
Despite the pullback on Tuesday, many investors expect the market to grind higher this year as a gradually recovering economy helps support corporate earnings going forward.
"It's going to be choppy, but still continuing an upward trend," said Tom Winmill, portfolio manager at Midas Funds. "There's an expectation that earnings will keep improving and we're looking for more surprises on the upside."
Oil for March delivery slipped $1.68 to settle at $86.19 a barrel.
Gold futures for February delivery tumbled $12.20 to end at $1,332.20 an ounce.
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