CORRECTED - US STOCKS-Wall St up on stimulus hopes; earnings eyed

                                
 (Corrects paragraph 11 by removing reference to LDK Solar
naming a new chief financial officer, in comment sent at 10:35
a.m. and repeated at noon)
                                
 * Gymboree soars on takeover deal
                                
 * Dollar edges lower on hopes Fed will ease
                                
 * Indexes up: Dow 0.1 pct, S&P 0.2 pct, Nasdaq 0.3 pct
 * For up-to-the-minute market news see [STXNEWS/US]
 (Updates to early morning)
                                
 By Chuck Mikolajczak
                                
 NEW YORK, Oct 11 (Reuters) - U.S. stocks edged higher on
Monday on expectations the U.S. Federal Reserve will almost
certainly bolster the economic recovery with another round of
quantitative easing.
                                
 The dollar shed 0.1 percent against a basket of other major
currencies <.DXY> as the Fed looked set to inject more cash
into the economy, but with bets against the greenback piling
up, traders were wary about pushing it lower.
                                
 The dollar and equities have been inversely correlated as
investors leave the perceived safety of the greenback to put
money into equities. For details, see [ID:nN11137639]
                                
 "We've seen it for a while, since mid-September, the dollar
sliding in value on the high likelihood that we will see more
quantitative easing coming out of the Fed," said Tim Ghriskey,
chief investment officer at Solaris Asset Management in Bedford
Hills, New York.
                                
 "And we will continue to see that expectation until the Fed
actually does something and states that they are done, at
least, for the time being."
                                
 The dollar was also affected after the International
Monetary Fund's member countries failed to defuse currency
tensions over the weekend. [ID:nN07222462]
                                
 The Dow Jones industrial average <.DJI> gained 15.28
points, or 0.14 percent, to 11,021.76. The Standard & Poor's
500 Index <.SPX> added 2.31 points, or 0.20 percent, to
1,167.46. The Nasdaq Composite Index <.IXIC> rose 6.22 points,
or 0.26 percent, to 2,408.13.
                                
 As quarterly earnings season ramps up this week, investors
will look at corporate revenue outlooks to take a pulse on the
health of the economy.
                                
 "There will continue to be the focus on revenue growth
because that demonstrates real organic growth for companies.
Earnings are great, but there is a limit to how much you can
cut costs, especially with productivity near record highs and
workers really squeezed to the bone," added Ghriskey.
                                
 Gymboree Corp <GYMB.O> surged 22.6 percent to $64.91 after
it agreed to sell itself to Bain Capital, a private equity
firm, for $1.8 billion. [ID:nSGE69A16C]
                                
 Shares of LDK Solar Co Ltd <LDK.N> jumped 13.4 percent to
$11.13 after the Chinese solar wafer maker raised its revenue
outlook. [ID:nSGE69A12J]
                                
 CNOOC Ltd <0883.HK>, China's top offshore oil producer,
will pay $1.1 billion for a stake in a Chesapeake Energy Corp
<CHK.N> shale oil and gas field. Chesapeake climbed 3.6 percent
to $23.87. [ID:nTOE69A002]
  (Editing by Jeffrey Benkoe)