* Gold prices rebound after selloff
* Consumer prices decline, housing starts rise
* Coca-Cola lifts Dow after earnings, territory deal
* Indexes up: Dow 0.79 pct, S&P 0.82 pct, Nasdaq 0.80 pct
By Chuck Mikolajczak
NEW YORK, April 16 U.S. stocks rose on Tuesday
after the worst decline since November in the prior session as
gold's price made a modest recovery and government data on
inflation and housing signaled an improving economy.
Spot gold gained 2.8 percent as the market tried to
steady after the precious metal recorded its biggest ever daily
drop in dollar terms in the prior session. But even as physical
buyers seized on the lower prices, investors remained jittery
about further declines.
U.S.-listed shares of gold miners Barrick Gold and Randgold
Resources rebounded along with the precious metal. Barrick
rose 3.6 percent to $20.50 and Randgold
climbed 4.5 percent to $72.17. The PHLX
Gold/Silver index advanced 3 percent.
U.S. stocks posted their worst day since Nov. 7 on Monday as
big declines in the price of gold, oil and other commodities fed
a broad selloff in equities. Stocks fell further after two fatal
explosions near the finish of the Boston Marathon.
Government economic data, which has shown some weakness
recently, was a positive force on Tuesday. The cost of living
went down in March as the consumer price index slipped 0.2
percent, while starts at building sites for homes rose to the
highest level since June 2008.
The data added to evidence of a healthier housing market,
which is critical to the economy.
"The big thing dragging down stocks yesterday was really the
sharp decline in gold and you see that lifting here a bit," said
Tim Ghriskey, chief investment officer of Solaris Group in
Bedford Hills, New York.
"You see a nice strong housing starts number today and that
certainly is providing an additional lift to the market."
The Dow Jones industrial average gained 115.30
points, or 0.79 percent, to 14,714.50. The Standard & Poor's 500
Index climbed 12.70 points, or 0.82 percent, to 1,565.06.
The Nasdaq Composite Index rose 25.79 points, or 0.80
percent, to 3,242.28.
The PHLX housing sector index gained 2.6 percent, led
by a 3.4 percent rise in Lennar Corp to $39.05.
Other data showed industrial production grew 0.4 percent
last month, topping expectations of a 0.2 percent rise, while
capacity utilization, rose to 78.5 percent in March from 78.3
percent in February.
Investors also digested a flurry of earnings reports.
Coca-Cola Co gained 4 percent to $41.69 as the biggest
boost to the Dow after the soft drink company posted
first-quarter earnings and announced a deal to sell some
territory held by its company-owned bottling system.
Fellow Dow component Johnson & Johnson added 0.7
percent to $82.25 after the diversified healthcare company
reported better-than-expected first-quarter earnings.
Goldman Sachs reported a stronger-than-expected rise
in quarterly profit as it earned more from underwriting fees and
its own investments, but shares dipped 1 percent to $144.96.
Target Corp shed 0.4 percent to $68.17 after the
retailer warned first-quarter earnings would miss expectations
after weaker-than-expected sales of seasonal and other items.
Intel Corp and Yahoo Inc are scheduled to
post earnings after the close.