Stock Market Today: Stocks Dip Despite Gains in Manufacturing, Construction

NEW YORK (TheStreet) -- U.S. stock markets dipped Tuesday afternoon after fluctuating between gains and losses for much of the day as investors returned from the U.S. Labor Day weekend to a trio of good U.S. economic reports.

The ISM manufacturing index hit a stronger-than-anticipated 59 in August, while construction spending rebounded by a more-than-forecast 1.8% in July. The Markit PMI manufacturing index, at 57.9 in August, increased to its highest level since April 2010.

Watch the video below for a look at how U.S. markets are doing in midday trading Tuesday:

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Off their intraday lows following the economic news, the Dow Jones Industrial Average was down 0.4% to 17,030.69 and the S&P 500 was down 0.34% to 1,996.52. The S&P hit a new intraday high of 2,006.12 before pulling back. The Nasdaq was down 0.02% to 4,579.33.

"Investors are going to have to figure out how they feel about better economic data in the context of less Fed accommodation. Assuming forecasts hold, this is going to be the struggle as the year progresses," said Dan Greenhaus, chief strategist at BTIG.

The Federal Reserve is expected to keep a close eye on Friday's August nonfarm payrolls report. The central bank's labor market conditions index that was referenced by Fed Chair Janet Yellen in her Jackson Hole, Wyo., speech sources much of its data points from these numbers.

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