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New York - US stock markets closed mixed on Tuesday as investors followed the saga of Europe's public debt crisis ahead of a key EU summit and reports of a possible big increase in eurozone rescue firepower.
The Dow Jones Industrial Average rose 52.30 points to finish at 12 150.13.
The tech-influenced Nasdaq Composite fell 6.20 points to 2 649.56, while the S&P 500, a broader measure of the markets, edged up 1.39 points to 1 258.47.
Stocks were unable to build "meaningful" momentum into the close, said Scott Marcouiller at Wells Fargo Advisors.
Trade was choppy but the main indexes climbed sharply in the afternoon on news the European Union is considering almost doubling the financial firepower it could use to contain the spreading eurozone sovereign debt crisis.
Negotiators are considering allowing the eurozone's existing €440bn bailout fund "to continue running when a new €500bn facility comes into force in mid-2012," the Financial Times reported, citing senior European officials.
"Amid low volume, stocks jumped in the last hour and half of trade following a Financial Times report" on the rescue fund, Marcouiller said.
"Stocks initially responded with positive moves only to fall back into ranged trading."
Halliburton shares plunged 3.9% to $35.57 on reports that it is being sued by British energy giant BP. BP alleged in a court filing that Halliburton intentionally destroyed evidence to conceal its role in the 2010 Gulf of Mexico oil rig disaster.
Computer maker Dell fell 0.4% to $15.82 after announcing it would halt sales of its Android tablet computer in the United States, as rival Amazon's new Kindle Fire has heated up the US market, dominated by Apple's iPad.
Amazon dropped 2.2% and Apple fell 0.5%.
Ford fell 0.5%. The automaker said it would invest 800 million reals ($446m) to build a new global model in its Sao Bernardo do Campo plant near Sao Paulo.
Bonds slipped. The yield on the 10-year Treasury rose to 2.09% from 2.05% on Monday, while the 30-year yield climbed to 3.11% from 3.04%.
Bond prices and yields move in opposite directions.
