* Gold prices rebound after massive selloff
* Coke, J&J lead blue chips after earnings
* Fed given room to maneuver after CPI falls in March
* Dow up 0.8 pct, S&P 500 up 1 pct, Nasdaq up 1.2 pct
By Rodrigo Campos
NEW YORK, April 16 (Reuters) - U.S. stocks rose on Tuesday,
bouncing back after their worst decline since early November,
following solid earnings from Coca-Cola and Johnson & Johnson,
and inflation data that reinforced expectations that the Federal
Reserve will keep its stimulus in place.
The price of gold rebounded after its biggest-ever daily
drop in dollar terms on Monday. U.S.-listed shares of Randgold
Resources climbed 3.3 percent to $71.32. The
PHLX Gold/Silver index advanced 1.1 percent.
Positive analyst views on basic materials companies helped
the sector lead the S&P 500 higher, with its materials index
up 1.6 percent after a drop of more than 5 percent in
the two previous sessions combined.
Shares of Coca-Cola, up more than 5 percent at their highest
since 1998, and J&J, at a new record high, led the Dow
industrials after reporting earnings that pleasantly surprised
Coca-Cola Co gained 5.3 percent to $42.21 and gave the
biggest boost to the Dow after the world's largest soft drink
maker posted slightly higher-than-expected profit and announced
a deal to unload some distribution territory to five independent
The stock of fellow Dow component Johnson & Johnson
touched a record high of $83.50 after the diversified healthcare
company reported better-than-expected first-quarter earnings.
J&J shares shot up 1.8 percent to $83.18.
International Paper and Vulcan Materials were
among the top performers after bullish analyst notes.
Further supporting equities, data showed the U.S. Consumer
Price Index fell in March for the first time in four months,
giving the Federal Reserve room to maintain its monetary
stimulus to speed up economic growth.
"Dovish economic data is not good in the long run, but it is
certainly supportive of more Fed action," said Art Hogan,
managing director at Lazard Capital Markets in New York.
He said earnings from safety plays like Coca-Cola and J&J
are going to determine if the market enters a correction phase
that many are expecting - or if it finds more buyers looking for
The Dow Jones industrial average climbed 117.12
points or 0.80 percent, to 14,716.32. The S&P 500 rose
16.06 points or 1.03 percent, to 1,568.42. The Nasdaq Composite
gained 37.80 points or 1.18 percent, to 3,254.29.
On Monday, U.S. stocks posted their largest drop since Nov.
7 as sharp declines in the price of gold, oil and other
commodities triggered a broad selloff in equities. Stocks fell
further after two fatal explosions near the finish line of the
The S&P 500 is up 10 percent so far this year.
The benchmark S&P 500's slide on Monday took the index back
to a range it had held for about a month. The S&P 500 faces
technical resistance near 1,568, its 14-day moving average.
Other U.S. data released on Tuesday showed industrial
production grew 0.4 percent last month, topping expectations for
a gain of 0.2 percent, while capacity utilization edged up to
78.5 percent in March from 78.3 percent in February.
Goldman Sachs reported higher quarterly earnings but
said revenue from client trading fell 10 percent, raising
questions about the health of its biggest money maker. Goldman's
shares fell 1.7 percent to $143.94.
After the closing bell, Intel Corp and Yahoo Inc
are scheduled to report quarterly earnings. Intel's
stock was up 1.7 percent at $21.74. In contrast, Yahoo's shares
slipped 0.5 percent to $23.86.