MARKET SNAPSHOT: U.S. Stocks Edge Higher; Manufacturing Data Weighs

By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- The U.S. stock market edged higher on Tuesday but the gains were muted as a weaker-than-expected manufacturing report in the New York State region provided investors with more evidence of lost momentum in the economy.

Investors are awaiting housing data due to be released at 10 a.m. Eastern. Markets were closed on Monday for Presidents' Day holiday.

The S&P 500 (SPX) edged up 3 points, or 0.2% to 1,841.17.

The Dow Jones Industrial Average (DJI) slipped 7 points to 16,147.80, with Coca-Cola Company (KO) leading the losses after poor earnings results.

The Nasdaq Composite (RIXF) was trading 14 points, or 0.3%, higher at 4,258.15. Follow our stock market live blog.

Manufacturing activity in the New York region gave up most of the strong gains made during the prior month although it remained in positive territory, according to data released Tuesday. The report fits a picture of a manufacturing sector struggling with severe winter weather. The ISM index for the U.S. showed manufacturers suffered from the January chill last month.

At 10 a.m. Eastern, the NAHB housing market index is out, which economists say should stay at the 56 level in February. Since hitting a high of 58 in August last year, the index has drifted a bit lower, partly because of a sharp rise in mortgage interest rates.

Among big movers on Wall Street was Forest Laboratories Inc. (FRX) with shares surging 30% on news that Actavis PLC (ACT) will buy its New York-based rival in a cash-and-stock deal worth $25 billion. Actavis leapt 7.4%.

Shares of Coca-Cola Co. (KO) were down 3.6% after the beverage company's fourth-quarter profit and revenue came in below analyst forecasts.

Shares of Tesla Motors Inc.(TSLA) were up 2.7% Tuesday after a report that Apple Inc.'s (AAPL) top deal-maker met with the car company's CEO, Elon Musk, last year as part of its quest to snap up companies to fuel growth. Apple shares were up 0.8%.

BlackBerry Ltd. (RIMM) is up 4.7% following news last session that billionaire fund manager Dan Loeb took a stake in the company as part of his investment in struggling device makers.

FBR & Co. also upgraded BlackBerry's stock to market-perform from underperform, with Analyst Scott Thompson writing in a note: "We expect the company's liquid assets and early positive momentum could limit downside in shares in the near term."

Prana Biotechnology Ltd. (PRAN) was up 13% after the pharmaceutical company said it met the endpoint for one phase of a clinical study testing its treatment for Huntington disease.

Herbalife (HLF) is due to report fourth-quarter results after the market close and is expected to post earnings of $1.25 a share. Herbalife said earlier this month that it plans to offer $1 billion in convertible notes and use the proceeds to buy back shares. Shares rose 1%.

In other financial markets, the trading mood was mixed. In Asia, Japan's Nikkei 225 index rallied 2.9% after the Bank of Japan said it would double incentives designed to increase bank lending. Other Asian markets closed mixed.

European stock markets traded broadly lower and stayed in negative territory after a disappointing reading on German economic sentiment. Gold prices edged higher, the dollar and oil prices rose.

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