U.S. stocks closed lower Tuesday as investors eagerly awaited a speech from President Donald Trump while parsing through key economic data.

"It's just a wait and see approach at this point," said Tom Cassidy, chief investment officer at Univest Wealth Management Division. "It's going to be tough for the market to keep going higher because we want detail and it's tough to give detail in this kind of speech."

The Dow Jones industrial average closed about 25 points lower, with Wal-Mart contributing the most losses. The index also snapped a 12-day winning streak, its longest since 1987.

"Investors are setting up to potentially sell the news," said Adam Sarhan, CEO of 50 Park Investments. "Investors have been buying the rumor, in this case Trump's speech, and now there's a lot of pent-up selling" in case Trump does not deliver what the market wants.

The S&P 500 declined 0.26 percent, with consumer discretionary lagging, snapping. Shares of Target dragged discretionaries lower, falling more than 10 percent on the back of weaker-than-expected quarterly results and light guidance.

The Nasdaq composite fell 0.6 percent.

"A lot of this has been built on expectations about Trump's policies, but nothing has happened yet," said Ben Barzideh, wealth advisor at Piershale Financial Group. "We do expect him to elaborate a bit."

Trump is scheduled to speak at a joint Congress session Tuesday night. Wall Street will be listening closely for any clues or details regarding the administration's plans on tax reform and deregulation.