U.S. stocks traded higher Tuesday on mild labor costs data.

In the midday trading, the Dow Jones Industrial Average was up 11.70, to 12,265.55. The Standard & Poor's 500 index rose 2.19 to 1,411.31, and the Nasdaq composite index climbed 2.14 to 2,450.53.

On the data front, the Labor Department said Tuesday that Unit- labor costs -- a key measure of inflationary pressures stemming from a tight labor market -- were revised much lower in both the second and third quarters. Instead of rising at a 5.3 percent pace in the past year, unit-labor costs in the nonfarm business sector were revised to a much-tamer 2.9 percent annual pace.

Meanwhile, new orders for U.S. manufactured goods plunged 4.7 percent in October, the third decline in the past four months and the biggest drop since July 2000, the Commerce Department reported Tuesday.

The report suggests that the manufacturing sector is starting to experience the adverse impact from the slowdown in the overall economy, according to analysts.