NEW YORK (CNN/Money) - U.S. stock markets were little changed early Wednesday, with investors holding back amid conflicting signs about interest rates in the morning's economic news and the previous session's data.

After 10 minutes of trading, the Dow Jones industrial average (down 18.88 to 10361.55, Charts), the Standard & Poor's 500 (down 0.75 to 1131.26, Charts) index and the Nasdaq composite (down 3.69 to 1991.91, Charts) all traded near unchanged.

A milder-than-expected consumer prices report and unsurprising comments from Federal Reserve Chairman Alan Greenspan Tuesday had reassured rate-hike wary investors that the central bank won't be forced to tighten more than expected when it meets at the end of this month.

However, surprisingly strong economic news early Wednesday challenged such expectations.

A pair of reports on homebuilding showed the sector continuing to show resilience even in a rising rate environment. Housing starts in May dipped a bit from April, a morning report showed, although not as much as economists were expecting. Building permits edged up from the previous month, versus economists' forecasts for a small decline.

Another report showed that the manufacturing sector continues to recover. Industrial production for May rose 1.1 percent, after rising 0.8 percent in April. Economists expected it to rise 0.8 percent. Capacity utilization, or the pace at which companies operate, also jumped last month.

The Fed Funds futures contract currently points to the Fed boosting rates by a quarter-percentage point when it meets June 29-30.

In corporate news, electronics retailer Best Buy (BBY: unchanged at $53.08, Research, Estimates) reported fiscal first-quarter earnings of 34 cents per share, up from a year earlier, and a penny more than expected. The company also issued a second quarter and full-year forecast that was in line with estimates.

Business software maker Oracle (ORCL: down $0.39 to $11.32, Research, Estimates) reported fiscal fourth-quarter earnings late Tuesday of 19 cents per share, up from 16 cents a year earlier and a penny more than expected. Revenue also rose from a year earlier and just edged analysts' estimates.

However, the stock sank because investors had been hoping for even higher sales of new software, particularly in the applications business -- where Oracle competes with PeopleSoft (PSFT: down $0.13 to $18.43, Research, Estimates), the company Oracle has been trying to take over.

In other news, Mandalay Resort Group (MBG: unchanged at $67.88, Research, Estimates) agreed to a $4.8 billion in cash takeover offer from MGM Mirage (MGG: unchanged at $49.50, Research, Estimates).

Treasury prices declined, pushing the 10-year note's yield up to 4.74 percent from 4.68 late Tuesday. Bond prices and yields move in opposite directions.

Among commodities markets, Brent crude oil futures rose 35 cents to $35.38 a barrel in London. COMEX gold fell $2.60 to $386.10 an ounce.

In international trading, Asian markets rallied Wednesday and European markets edged up at midday there.