NEW YORK, Jan. 21 (Xinhua) -- U.S. stocks cut earlier gains and traded mixed Tuesday to start the holiday-shortened week, as investors weighed a flurry of mixed corporate earnings against an easing money market in China.
In midday trading, the Dow Jones Industrial Average dipped 119. 83 points, or 0.73 percent, to 16,338.73. The S&P 500 lost 3.54 points, or 0.19 percent, to 1,835.16. The Nasdaq Composite Index added 5.22 points, or 0.12 percent, to 4,202.81.
After a break on Monday in observance of Martin Luther King Jr. Day, the U.S. stock market opened higher on the heels of a broad rise in Asian and European stocks mainly thanks to the People's Bank of China's liquidity injection to relief concerns over financial risks in the world's second largest economy.
The Chinese central bank pumped 255 billion yuan (42 billion U. S. dollars) into the money market on Tuesday, propelling China's Shanghai Composite Index to rise above the level of 2,000 again and Asian markets to close higher.
However, the U.S. equity market lost momentum soon, as investors continued digesting fourth-quarter earnings from several large corporations, with no significant economic data coming in.
Shares of Dow component Verizon Communications Inc. tumbled 3. 12 percent to 46.84 dollars in midday though it reported a 3.4 percent rise of its quarterly revenues, moderately higher than the market forecast.
Shares of another Dow component Johnson & Johnson lost 2.04 percent to 93.12 dollars in midday as the maker of health-care products released a light 2014 guidance.
Delta Airlines Inc.'s shares climbed 2.16 percent to 31.74 dollars in midday as its fourth-quarter earnings beat analysts' estimates.
Moreover, the International Monetary Fund (IMF) issued a positive outlook for the world's economy, but it failed to provide a strong boost to the market. The IMF expected global growth to average 3.7 percent in 2014 -- up from 3 percent in 2013 -- and to rise to 3.9 percent in 2015 in its latest report on the health of the global economy.