Wall Street Bouncing Back from Monday Losses

Gold price rebounds as well

Stocks rose on Tuesday, bouncing back after their worst decline since early November, following solid earnings from Coca-Cola and Johnson & Johnson and inflation data that reinforced expectations that the Federal Reserve will keep its stimulus in place.

The price of gold rebounded after its record daily drop in dollar terms on Monday. U.S.-listed shares of Randgold Resources climbed 3.2 percent to $71.24. The PHLX Gold/Silver index .XAU advanced 0.7 percent.

Positive analyst views on basic materials companies helped the sector lead the S&P 500 higher, with its materials index .SPLRCM up 1.9 percent after a drop of more than 5 percent in the two previous sessions combined.