GLOBAL MARKETS-Economic optimism lifts stocks, dollar down

                                
   * Signs of economic recovery help Dow hold above 10,000
                                
 * Goldman, Citi post strong, not spectacular, earnings
                                
 * Dollar ends lower after investors exit safe trades
 (Recasts lead; updates with U.S. markets close)
                                
 By Jennifer Ablan
                                
 NEW YORK, Oct 15 (Reuters) - Solid U.S. economic data and
robust earnings fueled investor appetite for risk on Thursday,
boosting global stocks but sending the dollar lower.
                                
 Optimism was pumped up after the Dow Jones industrial
average <.DJI> hit the psychologically important 10,000 level
on Wednesday, the first time in a year. After see-sawing around
that level for much of Thursday, investors snapped up stocks
during the last half hour of trading to send the Dow Jones
industrial up 47.08 points, or 0.47 percent, at 10,062.94.
                                
 The Standard & Poor's 500 Index  <.SPX> was up 4.54 points,
or 0.42 percent, at 1,096.56. The Nasdaq Composite Index
<.IXIC> was up 1.06 points, or 0.05 percent, at 2,173.29.
                                
 Investors were heartened by signs that stabilization in the
labor market was taking hold. The number of U.S. workers filing
new claims for jobless insurance unexpectedly fell last week to
the lowest since January, according to a government report on
Thursday that hinted at stabilization in the labor market.
                                
 For story see [ID:nN14260021], for table [ID:nOAT002318]
                                
 "Another decline in jobless claims strongly suggests that
the worst for employment conditions have now passed," said Tom
Sowanick, co-president and chief investment officer at Omnivest
Group LLC in Princeton, New Jersey. "That is giving many
investors comfort that we are on the path of economic
recovery."
                                
 Goldman Sachs Group <GS.N>, the New York-based investment
bank, earlier set the soft tone for markets. Goldman reported
third-quarter profit that nearly quadrupled and topped
expectations. However, its shares fell on disappointment that
so much of the profit came from trading gains that might not be
sustainable. [ID:nN15288862]
                                
 "There were all sorts of rumors flying around that the
results were going to be even stronger than consensus, so the
initial reaction is that they've slightly disappointed despite
beating estimates significantly," said Rupert Armitage of Shore
Capital Stock Brokers in London.
                                
 Citigroup Inc <C.N> also reported better-than-expected
results, but it was still a loss. [ID:nN15291217]
                                
 Energy companies Exxon Mobil Corp <XOM.N> and Chevron Corp
<CVX.N>, however, gained at least 1.5 percent as crude jumped
above $77 a barrel. U.S. light sweet crude oil <CLc1> rose
$2.36, or 3.14 percent, to  $77.54 and spot gold prices <XAU=>
fell $12.55, or 1.18 percent, to $1,049.40 an ounce. The
Reuters/Jefferies CRB Index <.CRB> was up 3.79 points, or 1.4
percent, at 273.72.
                                
 World stocks as measured by MSCI <.MIWD00000PUS> were up
0.36 percent to 298.49, at its year high.
                                
 Japan's Nikkei <.N225> closed up 1.8 percent and the
FTSEurofirst 300 was up a smidgen, 0.1 percent, to 1,017.26.
                                
 Bank of America Merrill Lynch said on Wednesday their
monthly survey of fund managers had shown increasing
bullishness but had not reached the level yet that risked a
sharp counter swing.
                                
 "Fears of a double dip have receded, while worries about
inflation and monetary tightening are not imminent enough to
prevent an October surge in risk appetite," Michael Hartnett,
the bank's chief global equity strategist, said in a note to
clients.
                                
 STOCKS SUCK WIND OUT OF DOLLAR
                                
 Not coincidentally, the dollar moved in sympathy with
stocks all day, settling lower by close as investors exited
safer trades on optimism the U.S. economy is recovering.
                                
 The greenback was down against a basket of major
trading-partner currencies, with the U.S. Dollar Index <.DXY>
down 0.16 percent at 75.429 from a previous session close of
75.551.
                                
The euro <EUR=> was up 0.05 percent at $1.4932 from a
previous close of $1.4924. The dollar <JPY=> was up 1.32
percent at 90.60 yen from a previous session close of 89.420.
                                
U.S. Treasury debt prices also fell. The benchmark 10-year
U.S. Treasury note <US10YT=RR> was down 13/32, with the yield
at 3.47 percent, while the 2-year U.S. Treasury note <US2YT=RR>
was down 2/32, with the yield at 0.96 percent. At the longer
end of the yield curve, the 30-year U.S. Treasury bond
<US30YT=RR> was down 22/32, with the yield at 4.31 percent.
 (Additional reporting by Jeremy Gaunt and David Brett in
London; Editing by James Dalgleish)