U.S. equities were slightly lower at midday after initially rising following the December report on producer prices. The Dow Jones Industrial Average, S&P 500, and Nasdaq all were down less than 0.5%. 

United Rentals (URI) shares advanced when the provider of construction and industrial equipment purchased H&E Equipment Services (HEES) for $4.8 billion. H&E shares doubled.

Shares of KB Home (KBH) gained after the homebuilder beat profit and sales estimates on a big jump in deliveries.

Tesla (TSLA) shares rose for a second straight session after Morgan Stanley boosted its price target, pointing to the potential of the electric vehicle (EV) maker's robotaxi.

Eli Lilly (LLY) was the worst-performing stock in the S&P 500 when the drugmaker predicted fourth-quarter sales of its blockbuster drugs Zepbound and Mounjaro will come in below forecasts.

Shares of Charles River Laboratories International (CRL) slid after the biological testing firm warned of a decline in organic revenue as it faced lower demand, pricing issues, and disadvantageous foreign exchange rates.

Las Vegas Sands (LVS) shares declined when Morgan Stanley downgraded the stock, pointing to limited earnings growth and risks in the Macau and Singapore markets. 

Oil futures slumped. Gold prices were up slightly. The yield on the 10-year Treasury note was little changed. The U.S. dollar gained on the pound and yen, but lost ground to the euro. Most major cryptocurrencies traded higher.