Midday Report: Activist Investor Urges Pandora Sale; U.S. Stocks Fall

U.S. stocks were modestly lower, pulling back from Monday's rally and trading on inflation data.
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U.S. stocks were modestly lower at middayon Tuesday, pulling back from Monday's rally and trading on inflation data. Consumer prices in April rose at their fastest pace in more than three years, though still remain far from the Federal Reserve's two percent target. Industrial production rose 0.7 percent in April, its biggest gain since the end of 2014 and the first increase in three months. Shares of Lending Club (LC) - Get Report tumbled after the company disclosed it had received a federal subpoena only days after the forced resignation of its CEO. The subpoena concerned non-conforming sales tied to millions in improper loans sold in March and April. Pandora (P) jumped after activist investor Corvex Management urged the music streaming site to put itself up for sale. The investment firm said the music-streaming service has been unable to turn a great product into a great business. TheStreet's Keris Lahiff reports from Wall Street.