Markets

Stocks move higher on home building, low inflation

June 18, 2013 / 12:18 PM EDT / AP

NEW YORK The stock market is moving higher in midday trading after the government reported gains in home construction and low inflation.

Investors are also sending stocks up because they expect the Federal Reserve will keep in place programs meant to prop up the economy.

The Dow Jones industrial average (DJI) was up 110 points, or 0.7 percent, to 15,292 at noon Eastern Daylight Time Tuesday.

The Standard & Poor's 500 index (SPX) rose 10 points, or 0.6 percent, to 1,649. All 10 industry groups rose, led by telecommunications.

The Nasdaq (COMP) was up 25 points, or 0.7 percent, at 3,477.

The pace of home construction rose in May and builders applied for permits to build single-family homes at the fastest pace in five years.

Hormel Foods (HRL) fell 4 percent after cutting its profit forecast.