US STOCKS-Wall St erases losses after positive housing data
* Stocks were negative earlier on weak manufacturing data
* August homebuilder sentiment highest in nearly a decade
* Zulily soars on Liberty Interactive's $2.4 bln buyout offer
* Tesla jumps after Morgan Stanley upgrade
* Indexes up: Dow 0.2 pct, S&P 0.2 pct, Nasdaq 0.3 pct (Adds details, comment, updates prices)
By Tanya Agrawal
Aug 17 (Reuters) - Wall Street erased earlier losses to notch modest gains in late morning trading on Monday after data showed that U.S. homebuilder sentiment rose in August to its highest level in nearly a decade.
U.S. stocks had fallen at the open after data showed a surprise fall in manufacturing activity in the state of New York in August.
But, the markets staged a turnaround after the National Association of Home Builders said more builders viewed market conditions as favorable than not. Continuación...