News Summary: Homebuilding, factory output rise

HOUSING STARTS RISE: U.S. homebuilding rose to nearly a three-year high in April. Builders broke ground at a seasonally adjusted annual pace of 717,000 homes, the Commerce Department said Wednesday.

FACTORY OUTPUT UP: U.S. factory output increased for the third time in four months, the Federal Reserve said in a separate report. Half of the April increase in factory output reflected a jump in production of motor vehicles and parts.

OUTLOOK: The positive April data suggest the economy's March slump was temporary and that gains in the previous two months were not just weather-related.