Stocks pared losses and the Dow and the Nasdaq turned positive on Tuesday after a report showed U.S. manufacturing grew more than expected in May.

The Dow Jones industrial average <.DJI> dropped 0.57 points, or 0.01 percent, to 10,136.06. The Standard & Poor's 500 Index <.SPX> fell 2.39 points, or 0.22 percent, to 1,087.02. The Nasdaq Composite Index <.IXIC> gained 0.89 points, or 0.04 percent, to 2,257.93.

The U.S. manufacturing sector expanded for a tenth straight month but at a slower pace than in April, while employment rose to its best level in six years, according to an industry report released on Tuesday.

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)