US stocks have closed near break-even, clawing back from losses after Hewlett-Packard reported a huge charge for an acquisition, offsetting fresh data signalling recovery in the housing market.

After a triple-digit gain on Monday, the Dow Jones Industrial Average was down 5.83 points (0.05 per cent) at 12,790.13 in closing trade.

The S&P 500-stock index ticked up 1.01 (0.07 per cent) to 1,387.90, while the tech-rich Nasdaq Composite added 0.83 (0.03 per cent) at 2,916.90.