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Dow rebounds, gaining back half of Monday's loss

Michael Capolino, right, works with fellow traders on the floor of the New York Stock Exchange Tuesday, April 16, 2013. 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. (AP Photo/Richard Drew)

NEW YORK (AP) -- Stocks are posting their biggest gain since the beginning of the year thanks to strong reports on housing and earnings.

The increase wiped out more than half of the market's plunge from the day before.

The Dow Jones industrial average rose 157 points to 14,756 Tuesday, a gain of 1 percent. It dropped 265 on Monday.

The Standard & Poor's 500 closed up 22 points at 1,574, or 1.4 percent. It was the biggest increase since Jan. 2.

The Nasdaq rose 48 points, or 1.5 percent, to 3,264.

Coca-Cola jumped 6 percent after reporting strong results. The government reported that home construction surged last month.

Five stocks rose for every one that fell on the New York Stock Exchange. Volume was average at 3.6 billion shares.