US STOCKS-Wall St rises after data, ahead of Fed statement

                                
   * Fed to end two-day meeting
                                
 * Consumer prices rise in line with expectations
                                
 * Indexes up: Dow 0.4 pct; S&P 0.6 pct: Nasdaq 0.8 pct
                                
 * For up-to-the-minute market news, click STXNEWS/US
  (Updates to morning trading)
                                
 By Rodrigo Campos
                                
 NEW YORK, Dec 16 (Reuters) - U.S stocks rose on Wednesday
after data showed consumer prices did not overheat in November,
quelling inflation worries, while housing data pointed to
sustained recovery ahead of a Federal Reserve statement on the
condition of the U.S. economy.
                                
 Upbeat economic data and a dip in the U.S. dollar <.DXY>
lifted commodity prices across the board, driving the S&P
materials sector <.GSPM> up 1.3 percent. U.S. Steel Corp <X.N>
rose 2.2 percent to $49.30 and was among the top gainers after
a brokerage raised its rating on the stock to "buy." For
details, see [ID:nSGE5BF0FW]
                                
 Advanced Micro Devices Inc <AMD.N> rose 5.2 percent to
$9.27 after the Federal Trade Commission sued rival chipmaker
Intel Corp <INTC.O>, charging anti-competitive conduct. Intel
slipped 0.7 percent to $19.67. [ID:nWBT013418].
                                
 The Dow Jones industrial average <.DJI> gained 45.27
points, or 0.43 percent, to 10,497.27. The Standard & Poor's
500 Index <.SPX> rose 6.36 points, or 0.57 percent, to
1,114.29. The Nasdaq Composite Index <.IXIC> added 17.19
points, or 0.78 percent, to 2,218.24.
                                
 The Labor Department said the Consumer Price Index rose 0.4
percent on a seasonally adjusted basis after an unrevised 0.3
percent gain in October. [ID:nN164079]
                                
 "In spite of higher oil prices this fall, it seems like
inflation is still relatively tame, and that's one of the big
issues for both the consumer and businesses," said Kim Caughey,
senior equity research analyst at Fort Pitt Capital Group in
Pittsburgh.
                                
 On Tuesday, the government said U.S. producer prices jumped
a surprising 1.8 percent last month, and industrial output rose
firmly, sparking inflation jitters in financial markets.
                                
 Separately, data showed Wednesday that housing starts rose
to a seasonally adjusted annual rate of 584,000 in November at
the fastest rate since May, and building permits increased at
their fastest clip since November 2008.
                                
 The Federal Open Market Committee will end a two-day
policy-setting meeting later Wednesday that is likely to show
central bank officials are more upbeat about the economy, but
not enough to tighten loose borrowing costs that have
encouraged risk-taking, economists say. ID:nN15246231.
                                
 "I don't think people are anticipating a change in rates,
maybe a change in language. That kind of takes some downward
pressure away from this afternoon's anticipated release from
the Fed," Fort Pitt's Caughey said.
                                
 Looking ahead to 2010, U.S. stocks are expected to rise for
a second straight year as the economic and profit outlook
brightens, a new Reuters poll finds. To read the poll, click on
[ID:nN14193082])
                                
 Financial stocks were also in focus after sources said
global regulators would give banks a grace period before
forcing them to implement stricter capital rules, easing
concerns they might need to issue stock in the near future. For
details see [ID:nTOE5BF01O].
                                
 The Dow Jones Titans Bank index <.DJTBAK>, which tracks big
banks worldwide, rose 1.4 percent.
  (Editing by Jeffrey Benkoe)