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Pickup in home building sends stock market higher

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.