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Stocks rebound on housing, earnings data

Traders on the floor of the New York

Traders on the floor of the New York Stock Exchange observe a moment of silence Tuesday to honor the victims and families of the Boston Marathon bombings. Stocks are sharply higher in early trading, a day after the Dow Jones industrial average's worst drop this year. (April 16, 2013) Credit: AP

A strong report on housing and good quarterly earnings from several major companies helped the stock market rebound Tuesday after its worst day of the year.

The Dow Jones industrial average rose 157.58 points, to 14,756.78, winning back more than half of the 265 points it lost a day earlier. The Standard & Poor's 500 index climbed 1.43 percent, to 1,574.57. The Nasdaq rose 1.5 percent to 3,264.63.

Home construction starts at an annual rate exceeded 1 million last month for the first time since June 2008. Robust earnings from companies that included Coca-Cola and W.W. Grainger also propelled the market higher.

Monday's market decline was the biggest since Nov. 7, the day after Election Day. Gold, which was at the epicenter of Monday's sell-off, rose 26.20 Tuesday to $1,386.80 an ounce.

People often buy gold when they're fearful of rising prices and sell it when they see inflation ebbing.

Investors should expect a more volatile stock market until there is more confirmation that the economy is strengthening and the outlook for companies is improving, said Jeff Morris, head of U.S. equities at Standard Life Investment. -- AP

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