US STOCKS-Wall St higher 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 0.3 pct, S&P 0.4 pct, Nasdaq 0.6 pct (Updates to early afternoon)
By Tanya Agrawal
Aug 17 (Reuters) - Wall Street rose in early afternoon on Monday, erasing losses from earlier in the session, in light trading activity after data showed that U.S. homebuilder sentiment in August rose to a near decade-high.
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...