Wall Street pared early losses to trade flat Tuesday as investors tried to balance concerns about a weakening economy with hopes that lackluster indications about the health of the consumer and the housing market could bolster the case for lower interest rates.

The latest economic reports offered fresh evidence that consumer sentiment is taking a hit amid the worst housing slump in more than a decade.

In the reports, the Conference Board said its Consumer Confidence Index for September fell to its lowest level in almost two years and the National Association of Realtors reported sales of existing homes fell for a sixth straight month in August to the lowest point in five years.

Traders also weighed a series of negative reports from companies whose fortunes are tied to the health of the consumer. Retailers Target Corp. and Lowe’s Cos. trimmed their expectations for the year because of slowing sales, while homebuilder Lennar Corp. posted a fiscal third-quarter loss and sharply lower revenues. [MORE]