Stocks cut losses and the Nasdaq turned positive on Tuesday as equities continued to show resilience after a five-day rally, but investors were cautious as talks to resolve Greece's debt crisis faltered.

The Dow Jones industrial average <.DJI> dropped 34.47 points, or 0.27 percent, to 12,674.35. The Standard & Poor's 500 Index <.SPX> dropped 3.78 points, or 0.29 percent, to 1,312.22. The Nasdaq Composite Index <.IXIC> gained 1.32 points, or 0.05 percent, to 2,785.49.

(Reporting By Edward krudy; editing by Jeffrey Benkoe)