US STOCKS-Wall St set for strong open on gold bounce, data

Tue Apr 16, 2013 9:15am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Gold prices rebound after selloff

* CPI, housing starts data signal strength in economy

* Goldman Sachs, Coca-Cola higher after earnings

* Futures up: Dow 129 pts, S&P 13.6 pts, Nasdaq 25.75 pts

By Chuck Mikolajczak

NEW YORK, April 16 (Reuters) - U.S. stocks were poised for a strong open on Tuesday, indicating the S&P 500 will rebound from its worst decline since November, after gold made a modest recovery and data on U.S. inflation and new-home construction pointed to an improving economy.

Spot gold gained 3.1 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. 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, with weakness accelerating late in the session after two fatal explosions near the finish line of the Boston Marathon.

Economic data also helped support gains in equities. The consumer price index slipped 0.2 percent, erasing some of the 0.7 percent increase in February while starts at building sites for homes rose 7.0 percent last month.   Continued...