NEW YORK (AP) – Stocks turned narrowly mixed Tuesday, after a rise in home construction and a mild reading on consumer inflation encouraged investors, but a falling dollar and industrial output kept buying in check.

Investors were also cautious ahead of a new batch of first-quarter earnings reports, and after a more than 100-point advance in the Dow Jones industrial average Monday.

The Federal Reserve reported Tuesday that industrial output dropped 0.2 percent in March as utility production dropped by 7 percent, offsetting a rise in factory production.

But investors appeared heartened by the Commerce Department’s report that housing starts for March rose 0.8 percent, a feeble rise compared with February’s 7.6 percent advance, but much better than the drop investors had been expecting. Building permits also rose. The stock market has experienced several tumultuous weeks this year due to worries about the financial troubles of the subprime lending sector spilling into the already sluggish housing market.

Giving investors some additional relief, the Labor Department reported that its core consumer price index rose 0.1 percent in March, less than expected, and alleviating some anxiety about the Federal Reserve’s need to raising interest rates to curb rising costs. The overall consumer price index, which takes into account energy and food costs, rose 0.6 percent in March – the largest increase in 11 months – and was in line with expectations.

In midmorning trading, the Dow rose 38.11, or 0.30 percent, to 12,758.57. The blue chip index has risen 12 out of the last 13 sessions. The increase put the Dow about 30 points below its record close, which occurred Feb. 20.

Broader stock indicators were mixed. The Standard & Poor’s 500 index rose 3.56, or 0.24 percent, to 1,472.03, and the Nasdaq composite index slipped 0.56, or 0.02 percent, to 2,517.77.

Bonds rose after the economic data was released, with the yield on the benchmark 10-year Treasury note falling to 4.69 percent from 4.74 percent.

Gold prices slipped. The dollar neared all-time lows versus the euro, and dropped to a 15-year low against the British pound. The dollar’s weakness has been raising concerns about U.S. assets losing their allure to investors abroad.

Nearly half the component companies of the Dow Jones industrial average release earnings this week. Analysts expect the reports to show corporate growth is slowing, but on Monday, many companies’ financial results surpassed forecasts.

Early Tuesday, the Coca-Cola Co., the world’s largest beverage maker and one of the 30 Dow components, said its first-quarter profit jumped 14 percent. The rise beat analyst expectations, thanks to a double-digit increase in worldwide sales despite its troubled North America segment. Coca Cola rose $1.31, or 2.6 percent, to $51.58.

Another Dow component, health care products maker Johnson & Johnson, reported a profit drop of 22 percent due to a charge for an acquisition that more than offset record sales. But the results beat forecasts and the company rose $1.49, or 2.4 percent, to $64.51

Meanwhile, the financial sector posted mixed earnings. Mellon Financial Corp.’s profits rose and exceeded expectations, as did those of Wells Fargo & Co. But TD Ameritrade Holding Corp.’s profits dropped and missed predictions, and so did U.S. Bancorp’s. Mellon rose 38 cents to $44.52, Wells Fargo advanced 17 cents to $35.68 and TD Ameritrade fell $1.19, or 7.1 percent, to $15.68.

Investors will also be watching for first-quarter results from various companies, notably technology heavyweights Intel Corp. and International Business Machines Corp., which are due to report results after the closing bell. Intel roes 19 cents to $20.89 while IBM advanced 94 cents to $97.12.

Oil prices rose Monday, with a barrel of light sweet crude rising 65 cents to $64.26 on the New York Mercantile Exchange.

Overseas, Japan’s Nikkei stock average fell 0.57 percent. In afternoon trading, Britain’s FTSE 100 was down 0.30 percent, Germany’s DAX index was up 0.25 percent, and France’s CAC-40 was down 0.09 percent.

Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where volume came to 336.3 million shares.

The Russell 2000 index of smaller companies slipped 0.63, or 0.08 percent, to 830.81.

Overseas, Japan’s Nikkei stock average closed down 0.57 percent. In afternoon trading, Britain’s FTSE 100 fell 0.36 percent, Germany’s DAX index rose 0.13 percent, and France’s CAC-40 fell 0.21 percent.

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