U.S. Stocks Advance on April Inflation; Freddie Mac Gains

Freddie Mac, the second-largest U.S. mortgage-finance company, rallied the most in six weeks after saying it increased market share and revenue. Shares of Sony surged after the company posted a profit in the most recent fourth quarter, reversing the earlier losses, while Macy's Inc. posted its biggest gain since September on sales that topped estimates.

The Labor Department said the CPI, the monthly gauge of inflation, rose by 0.2 percent in April, in line with estimates. If so-called "volatile" food and energy prices are stripped from the equation, "core" CPI gained 0.1 percent, which is better than the 0.2 percent expected rise.

As of 12:26 EST, the Dow Jones Industrial Average rose 119.77 points, or 0.93 percent to 12,951.95, the Standard & Poor's 500 index gained 13.18 points, or 0.94 to 1,416.22 and the Nasdaq Composite Index picked up 26.36 points, or 1.06 percent to 2,521.48.

McLean-based Freddie Mac said its loss for the first quarter ended March 31 was $151 million, or 66 cents per diluted share, compared with a loss of $133 million, or 35 cents per share, in the year-ago period. Shares gained $2.40 to $27.36.

Macy's fueled a rally in retailers after the owner of Bloomingdale's and its chain store, said first-quarter sales fell less than analysts estimated and reiterated the company's annual forecasts. Shares climbed $1.18 to $25.24.

J.C. Penney Co., the third- largest U.S. department-store chain, added 37 cents to $44.42. Sears Holdings Corp. advanced 99 cents to $95.33.