* JPMorgan results, Google earnings hopes lift stocks
* Dollar, yen gain as fresh data rekindles economy worries
* Oil edges up toward $50 but mixed data curbs gains
* Bonds retreat as equities rise
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, April 16 (Reuters) - U.S. stocks jumped and bond
prices fell on Thursday after a better-than-expected quarterly
profit at JPMorgan and hopes Google's results would surprise on
the upside after markets close boosted optimism and dulled the
safe-haven appeal of Treasury debt.
Wall Street stocks surged in a late-afternoon rally as
investors bet that technology earnings will beat expectations,
lifting shares of Google Inc <GOOG.O>, Hewlett-Packard <HPQ.N>
and International Business Machines Corp <IBM.N>.
The dollar and yen rose against the euro as economic data
around the world reduced confidence the global economy will
recover anytime soon. Oil edged higher toward $50 a barrel but
gains were limited because of the mixed data.
China earlier posted its weakest three months of growth
since quarterly records began in 1992, while weak U.S. housing
data and record jobless claims reflected the tenacity of the
downturn.
Also on Thursday, the International Monetary Fund said the
global recession is likely to be unusually long and severe and
the recovery sluggish because it sprang from a financial
crisis. For details, see []
But regional U.S. manufacturing data that pointed to a less
drastic contraction gave investors some reason to cheer.
European shares ended at a two-month high, boosted by cellphone
maker Nokia <NOK1V.HE>, which said it saw signs of stabilizing
demand.
Also boosting sentiment were stronger-than-expected
quarterly results from Harley-Davidson Inc <HOG.N> that also
pointed to some stabilization in consumer spending.
The motorcycle maker's shares rose 5.7 percent to $18.11,
while Nokia's <NOK.N> U.S. shares soared more than 11 percent
to $14.88.
"People are starting to feel that maybe there's a slight
chance this is not just a bear market rally," said John
O'Brien, senior vice president at MKM Partners LLC in
Cleveland, referring to the market's 28-percent rebound since
touching a 12-year closing low on March 9.
"People are anticipating a pretty good number from Google.
They seem to like to under-promise and over-deliver," he said.
Google's results beat expectations, with its shares
climbing above $400 a share for the first time since October.
Shares of Apple Inc <AAPL.O> shares closed 3.2 percent
higher, while JPMorgan rose 2.1 percent and HP rose 5 percent.
JPMorgan Chief Executive Jamie Dimon said the bank could
pay back "tomorrow" the $25 billion in taxpayer funds it
received from the U.S. government in October, boosting
sentiment.
"That's probably the most positive thing any investor could
hear from them," said Rob Lutts, chief investment officer of
Cabot Money Management in Salem, Massachusetts.
The Dow Jones industrial average <> closed up 95.81
points, or 1.19 percent, at 8,125.43. The Standard & Poor's 500
Index <.SPX> rose 13.24 points, or 1.55 percent, at 865.30. The
Nasdaq Composite Index <> climbed 43.64 points, or 2.68
percent, at 1,670.44.
In Europe, the FTSEurofirst 300 <> index of top
shares ended up 1.75 percent at 802.02 points, the highest
closing level since Feb. 11.
JPMorgan and Nokia boosted European markets, as did Swiss
drugmaker Roche <ROG.VX>, which brushed off the first-quarter's
downturn. Roche posted a 7 percent rise in sales and sounded a
confident note for the full year. Roche shares gained 1.8
percent.
"We are getting a much better view in terms of what's
happening at the corporate level," said Henk Potts, strategist
at Barclays Stockbrokers.
"While it's not positive, it's certainly not as gloomy as
many market participants had feared," Potts said.
U.S. and euro zone government bond prices fell after the
upbeat corporate results boosted equities and cut the appetite
for less risky fixed-income assets.
U.S. Treasury prices also fell after the Federal Reserve
purchased fewer inflation-protected bonds than it has in recent
operations, buying just $1.5 billion of the $15.6 billion
submitted by dealers.
A contraction in U.S. factory activity in the mid-Atlantic
region slowed in April, according to a survey by the Federal
Reserve Bank of Philadelphia, helping push bond prices down.
The benchmark 10-year U.S. Treasury note <US10YT=RR> slid
20/32 to yield 2.84 percent. The 2-year U.S. Treasury note
<US2YT=RR> fell 4/32 to yield 0.91 percent.
But the U.S. dollar rose against a basket of major
currencies, with the U.S. Dollar Index <.DXY> up 0.28 percent.
The euro <EUR=> fell 0.36 percent to $1.3171. Against the
yen, the dollar <JPY=> slipped 0.05 percent to 99.34.
"The general theme is a slight rise in risk aversion that
was triggered by the disappointing Chinese GDP data and soft
euro-zone economic figures overnight," said Omer Esiner, forex
market analyst at Ruesch International in Washington.
U.S. crude for May delivery <CLc19> rose 73 cents, or 1.48
percent, to settle at $49.98 a barrel.
New York gold futures ended 1.5 percent lower as rising
stock prices dented safe-haven demand.
Gold for June delivery <GCM9> settled down $13.70 at
$879.80 an ounce in New York.
(To read Reuters Global Investing Blog click on
http://blogs.reuters.com/globalinvesting; for the MacroScope
Blog click on http://blogs.reuters.com/macroscope; for Hedge
Fund Blog click on http://blogs.reuters.com/hedgehub)
