Tuesday, April 16, 2013

Market Rally?

U.S. Stocks Open Broadly Higher; Gold's Bounce, Data Provide a Boost


--Stocks open broadly higher, with gold's bounce, housing data providing a boost
--Gold futures rise 2.6% after tumbling 9.4% on Monday
--Housing starts, industrial production rise more than expected
    By Tomi Kilgore 
NEW YORK--U.S. stocks opened broadly higher with a bounce in gold prices, strong housing data and upbeat earnings reports helping spark a rebound from the previous session's selloff.
The Dow Jones Industrial Average rallied 97 points, or 0.7%, to 14696. The Standard & Poor's 500-stock index gained 10 points, or 0.7%, to 1563 and the Nasdaq Composite index climbed 21 points, or 0.7%, to 3237.
On Monday, the Dow dropped 266 points, the biggest one-day point decline since Nov. 7, as a plunge in gold and other commodity prices spooked investors.
Front-month April gold futures rose 2.6% to $1,395.50 a troy ounce. On Monday, gold tumbled $140.40 an ounce, or 9.4%, its biggest one-day dollar decline in 33 years.
Also providing a boost, March new home sales jumped 7% on the month, well above expectations of a 1.7% rise. In addition, March industrial production rose a little more than expected, while the consumer price index declined slightly more than forecast.
Earnings season continued in upbeat fashion, with shares of Dow components Coca-Cola and Johnson & Johnson rising after the companies reported better-than-expected first-quarter earnings. Goldman Sachs also topped earnings forecasts, and the shares edged down 0.1%.
Write to Tomi Kilgore at tomi.kilgore@dowjones.com


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