* Wall Street ends best week since mid-March, IBM shines
* Dollar up as U.S. corporate outlooks spawn caution
* Oil rises above $63 a barrel after U.S. housing data
* Treasuries slip as stronger housing data damp safety bid
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, July 17 (Reuters) - Oil and other commodity
prices rose on Friday after U.S. housing data bolstered
prospects of economic recovery but a mixed batch of U.S.
corporate earnings raised concerns and kept Wall Street stocks
straddling break-even.
The U.S. dollar recovered from steep losses earlier in the
week as General Electric <GE.N> lowered its outlook and Bank of
America <BAC.N> warned of a fresh surge in soured loans,
enhancing the greenback's safe-haven appeal.
Oil rose for a fifth straight day and gained 6.1 percent on
the week, partially reversing a 10 percent plunge last week,
while copper prices climbed to a five-week high after an
unexpected jump in U.S. home starts in June boosted hopes for
recovery. [] []
European shares and London's top share index both posted a
fifth consecutive gain, but U.S. stocks traded lower for much
of the session while the S&P 500 ended slightly lower.
A strong outlook late Thursday from International Business
Machines Corp <IBM.N>, the world's largest technology services
provider, lifted the Nasdaq and the Dow above break-even.
For the week, U.S. stocks posted their best gains since
mid-March, with all three major indexes ending 7 percent or
more higher.
Investors were caught between further signs that a global
recession was ending and concerns that any recovery is still
weak and the economy still must overcome a number of hurdles.
"There's still an underlying tone of risk aversion looming.
People don't feel comfortable with the economy," said Melvin
Harris, strategist at Advanced Currency Markets in New York.
"Earnings today were not stellar while housing starts data
was good but is a volatile indicator," he said.
The Dow Jones industrial average <> closed up 32.12
points, or 0.37 percent, to 8,743.94. The Standard & Poor's 500
Index <.SPX> slipped 0.36 point, or 0.04 percent, to 940.38.
The Nasdaq Composite Index <> added 1.58 points, or 0.08
percent, to 1,886.61.
In Europe, the pan-European FTSEurofirst 300 <> index
of top shares closed up 0.4 percent at 870.56 points, while the
FTSE 100 <> closed up up 0.6 percent at 4,388.75.
Oil rose 2.5 percent in its first weekly gain in a month on
optimism over the U.S. housing data. []
U.S. crude oil for August delivery <CLc1> settled up $1.54
at $63.56 a barrel. London Brent crude for September <LCOc1>
rose $1.63 to settle at $65.38 a barrel.
"Oil is rebounding because there's a sense we have probably
overplayed pessimism about the economy lately, and prices had
fallen too far," said Phil Flynn, an analyst at PFGBest
Research in Chicago.
A 14.4 percent jump in single-family home starts, the
biggest rise since December 2004, propelled a 3.6 percent in
U.S. housing starts and dampened demand for safe-haven U.S.
government debt. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 20/32 in price to yield 3.65 percent. The 2-year U.S.
Treasury note <US2YT=RR> was down 1/32 in price to yield 0.99
percent.
A cautious mood prevailed in currency markets, but the U.S.
housing data eased anxiety and capped dollar gains.
"There's still an underlying tone of risk aversion looming.
People don't feel comfortable with the economy," said Melvin
Harris, strategist at Advanced Currency Markets in New York.
"Earnings today were not stellar while housing starts data was
good but is a volatile indicator," he said.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.40 percent at 79.529.
The euro <EUR=> was down 0.34 percent at $1.4098. Against
the yen, the dollar <JPY=> was up 0.54 percent at 94.30.
U.S. gold futures closed higher on the back of oil's rally.
Bullion investors continued to look for definite signs of
economic recovery and rising inflation before stepping up
buying. []
August gold futures <GCQ9> settled up $2.10 at $937.50 an
ounce in New York.
Zinc and lead both rose more than 5 percent, tracking gains
in copper.
Bomb blasts at hotels in Indonesia also dampened risk
sentiment, though most analysts said the effect was limited.
Asian shares extended gains on hopes the global recession
is ending after key U.S. companies beat earnings expectations.
Asian shares ex-Japan <.MIAPJ0000PUS> rose 1.2 percent and were
on track for their highest close in a month.
Japan's benchmark Nikkei <> clawed up 0.6 percent to
9,395.32. Gains have been limited by political uncertainty
since Monday, when embattled Prime Minister Taro Aso said he
aimed to call an election for Aug. 30.
