Stocks bounce back

NEW YORK (CNNMoney.com) -- Stocks bounced Tuesday morning, recovering from a broad selloff, as investors welcomed Hewlett-Packard's earnings and geared up for the minutes from the last Fed meeting, due later in the day.

The Dow Jones industrial average (Charts) added 0.7 percent in the early going, while the S&P 500 (Charts) index gained 0.9 percent. The Nasdaq composite (Charts) gained 1.1 percent.

Stocks tumbled Monday, with the Dow falling below 13,000 for only the second time since August, as Goldman Sachs' dour outlook on the financial sector and a weak report on home builder confidence sparked a broad market selloff.

After such a retreat, stocks bounced a bit Tuesday, aided by the news out of HP.

Hewlett-Packard (Charts, Fortune 500) reported quarterly sales and revenue that topped expectations late Monday, sending shares modestly higher Tuesday morning.

But other corporate news was less positive. Freddie Mac (Charts, Fortune 500) reported a steeper quarterly loss and said it had set aside $1.2 billion in the quarter to account for credit losses. Shares fell 32 percent in morning trading.

In economic news, October housing starts rose more than expected, while permits, a measure of builder confidence, fell more than expected.

U.S. light crude oil for January delivery rose 83 cents to $95.47 a barrel on the New York Mercantile Exchange, after having been on both sides of unchanged through the morning.

Treasury prices fell, raising the yield on the 10-year note to 4.08 percent from 4.07 percent late Monday. Treasury prices and yields move in opposite directions.

In currency trading, the dollar gained versus the yen and fell against the euro.

COMEX gold for December delivery rose $15.70 to $793.70 an ounce.