U.S. Stocks Rise as Gold Rebounds While Treasuries Drop

U.S. stocks rallied and Treasuries fell after housing starts and earnings from Coca-Cola Co. and Johnson & Johnson beat estimates, while gold rebounded from its biggest slump in three decades. European stocks fell while the yen and dollar weakened.

The Standard & Poor’s 500 Index gained 1.4 percent at 4 p.m. in New York, posting its second-best gain of the year and rebounding from the biggest drop in five months. The Stoxx Europe 600 Index fell 0.8 percent. Japan’s currency dropped against all 16 major counterparts, while the dollar weakened against 14. Treasury 10-year note yields climbed four basis points to 1.72 percent, the first increase in four days. Gold futures added 1.9 percent and palladium and platinum climbed more than 3.5 percent.