REFILE-US STOCKS-Benign inflation, strong results lift Wall St

(Refiles to fix typo in paragraph 14)

* Modest rise in CPI supports stocks

* Freddie Mac smaller than expected loss reassures

* Strong Macy's results lift retailers

By Caroline Valetkevitch

NEW YORK, May 14 (Reuters) - U.S. stocks rose on Wednesday in light trading after a modest rise in consumer prices in April cooled inflation fears while Macy's Inc (M.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) posted reassuring quarterly results.

A milder-than-expected gain in the Consumer Price Index took the edge off fears of an inflationary spurt triggered by soaring energy prices. That could allow the Federal Reserve more time to hold interest rates steady, analysts said.

Shares of retailers and home builders, which benefit from steady to lower borrowing costs, advanced. The S&P retail index .RLX rose 1.6 percent, as Macy's stood by the profit forecast for its department stores despite expectations of an economic slowdown.

Freddie Mac, seen as a housing market barometer, brightened the mood on Wall Street by raising its growth outlook and unveiling a plan to raise new capital to support the beleaguered home loan market.