Recovery in home sales, tame inflation news send stocks higher; Home Depot gains on earnings

U.S. stocks are moving higher in midday trading after investors got some encouraging news about home building and corporate earnings.

The Dow Jones industrial average rose 65 points, or 0.4 percent, to 16,904 as of noon Eastern time Tuesday.

The Standard & Poor's 500 index rose seven points, or 0.4 percent, to 1,979. The Nasdaq climbed 11 points, or 0.3 percent, to 4,519.

Investors were encouraged by a bounce in home construction and news that consumer prices rose at the slowest pace in five months.

Home Depot jumped 6 percent after its income surged thanks to a rebound in its spring selling season.

Home builders rose. Lennar and KB Home each rose 3 percent.

Bond prices were flat. The yield on the 10-year Treasury note held at 2.40 percent.