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Pickup in home building sends stock market higher

Tuesday - 4/16/2013, 10:35am  ET

In this Friday, April 12, 2013, photo, traders Daniel Kryger, left, and Peter Mancuso work on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)

NEW YORK (AP) -- Stocks are sharply higher in early trading, a day after the market's worst drop this year, as the government reported a surge in home construction last month.

Coca-Cola jumped 4 percent after reporting strong earnings. Home builder stocks rose following the construction report.

The Dow Jones industrial average leapt 98 points to 14,696 in early trading Tuesday, a gain of 0.7 percent. It lost 265 points Monday as commodities prices plunged.

The Standard & Poor's 500 was up 12 points, or 0.8 percent, to 1,564.

In a reversal from the day before, investors were moving money into risky assets. Utility stocks were the only industry group to fall in the S&P.

The Nasdaq composite rose 25 points to 3,242, a gain of 0.8 percent.

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