* Strong earnings, data knock dollar down to one-month low
* Oil climbs over $61 after fall in U.S. crude inventories
* Government debt prices fall on rising investor sentiment
* Gold jumps above $940/oz as dollar sparks buying
(Updates with U.S. markets activity, changes dateline;
previous LONDON)
By Herbert Lash
NEW YORK, July 15 (Reuters) - Global stocks surged and the
U.S. dollar weakened on Wednesday after blockbuster results
from Intel and a raft of economic news suggested the U.S.
economy and consumers may better off than previously expected.
Oil rose above $61 a barrel on data showing a fall in U.S.
crude inventories and after strong results from Goldman Sachs
and Intel on Tuesday lifted hopes for recovery. []
Government debt prices fell on both sides of the Atlantic
as stocks around the world advanced and a July manufacturing
index showed the slumping factory sector in New York state
nearly pulled out of its steep contraction. []
The euro <EUR=> extended gains above $1.41 as the strong
corporate earnings and U.S. data pushed investors away from the
dollar and into higher-yielding currencies and assets.
Increased risk appetite and rising oil prices also lifted
the Canadian dollar to a one-month high against the greenback.
Stocks surged more than 2 percent on Intel's <INTC.O>
results after the bell on Tuesday and upbeat outlook reinforced
hopes for recovery and a rebound in technology spending.
"Intel's earnings got things kicked off yesterday, and the
U.S. data just improves the outlook, so all lights are flashing
green for investors to take on risk," said Brian Dolan, chief
currency strategist at Forex.com in Bedminster, New Jersey.
AMD Micro Devices <AMD.N>, Intel's main rival, jumped about
10 percent while Microsoft Corp <MSFT.O> rose 3 percent.
The PHLX semiconductor index <.SOXX>, up 3.85 percent, was
on track for its fifth-straight day of gains -- its longest
winning streak since a six-day run-up in late May.
Investors reacted to Intel's ability to drive revenue, said
Greg Palmer, head of equity trading at Pacific Crest Securities
in Portland, Oregon.
"Commentary on demand seems to indicate that the end of the
world is not, in fact here, and that is probably the main
take-away," Palmer said.
Around 1 p.m. EDT (1700 GMT), the Dow Jones industrial
average <> was up 188.71 points, or 2.26 percent, at
8,548.20. The Standard & Poor's 500 Index <.SPX> was up 20.41
points, or 2.25 percent, at 926.25. The Nasdaq Composite Index
<> was up 50.17 points, or 2.79 percent, at 1,849.90.
European shares closed higher, with banking stocks the
biggest gainers.
The pan-European FTSEurofirst 300 <> index of top
shares rose 2.8 percent to close at 863.32 points.
"There is a growing conviction that recovery is coming and
we are leaving the worst behind," said Mike Lenhoff, strategist
at Brewin Dolphin.
Oil rose after the U.S. Energy Information Administration
said crude stocks fell by 2.8 million barrels, more than the
expected decline. [] The fall in stocks was offset by a
bigger-than-forecast rise in gasoline supplies.
U.S. light sweet crude oil <CLc1> rose $2.04 to $61.56 a
barrel.
An improved outlook for the economy tends to make investors
more willing to buy riskier assets like stocks and lessen their
appetite for safe-haven assets like government debt.
U.S. industrial output declined at a slower pace in June
and the New York Federal Reserve's Empire State general
business conditions index posted its strongest reading in a
year in July, suggesting a deep recession was loosening its
grip.
In a sign U.S. consumers' credit positions may not be
deteriorating as rapidly as feared, credit card companies
Capital One Financial Corp <COF.N> and Discover Financial
Services <DFS.N> reported lower-than-expected defaults and
delinquencies in June. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 30/32 in price to yield 3.59 percent. The 2-year U.S.
Treasury note <US2YT=RR> was down 5/32 in price to yield 1.02
percent.
Sterling rose to a two-week high of $1.6470 <GBP=D4> while
an index <.DXY> that measures the dollar against six major
currencies slipped almost 1 percent to more than a one-month
low.
Against the yen, the dollar <JPY=> was up 0.65 percent at
94.20.
Gold rose to a two-week high above $940 an ounce, while
copper prices hit a one-month high.
Spot gold prices <XAU=> rose $14.80 to $939.40 an ounce.
Asian stocks gained for a second day as Intel's results
augured well for the U.S. earnings season and consumer demand
globally. Japan's Nikkei <> eked out a 0.1 percent gain,
but shares elsewhere in the region as measured by MSCI's
<.MIAPJ0000PUS> Asia-Pacfic index rose 2 percent.
(Reporting by Rodrigo Campos, Steven C. Johnson, Ellen
Freilich in New York; Joanne Frearson, Joe Brock and Alex
Lawler; writing by Herbert Lash; Editing by Dan Grebler)
