US STOCKS-Dow hits 14-month high on data, dollar and Dubai

                                
 
                                
 * Manufacturing, housing data reinforce recovery hopes
                                
 * Dollar weakness spurs run-up in commodity shares
                                
 * Dow up 1.2 pct, S&P 500 up 1.2 pct; Nasdaq up 1.5 pct
                                
 * For up-to-the-minute market news, click [STXNEWS/US]
 (Updates to close)
                                
 By Caroline Valetkevitch
                                
 NEW YORK, Dec 1 (Reuters) - The Dow Jones industrial
average climbed to its highest close in 14 months on Tuesday as
a weak dollar boosted natural resource companies' shares and
economic data reinforced hopes for a sustainable recovery.
                                
 Sentiment also got a lift as concerns receded about the
impact of Dubai's debt trouble after news that Dubai World
planned to restructure about $26 billion in debt.
                                
 The dollar's decline bolstered shares of commodity-oriented
companies like U.S. Steel Corp <X.N>, up 1.2 percent at $45.18;
Alcoa Inc <AA.N>, up 2.2 percent at $12.80, and Newmont Mining
Corp <NEM.N>, up 3.8 percent at $55.66.
                                
 Data showed pending sales of previously owned U.S. homes
rose more than expected to their highest level in 3-1/2 years
in October. The Dow Jones home construction index <.DJUSHB>
gained 1.3 percent. For details, see [ID:nN01495024]
                                
 "People are starting to realize that things are coming
back. There are some pockets of weakness, but overall, we're
healing globally, and the overall trend is very positive," said
Thomas Belesis, chief executive officer at John Thomas
Financial in New York.
                                
 Concerns over a possible debt default by Dubai World
triggered a sell-off in stocks globally on Friday.
                                
 "Friday's fears about Dubai were overblown ... Investors
know the situation is out there, but they're putting that
aside," Belesis said.
                                
 The Dow Jones industrial average <.DJI> shot up 126.74
points, or 1.23 percent, to end at 10,471.58. The Standard &
Poor's 500 Index <.SPX> rose 13.23 points, or 1.21 percent, to
1,108.86. The Nasdaq Composite Index <.IXIC> advanced 31.21
points, or 1.46 percent, to close at 2,175.81.
                                
 The U.S. dollar index <.DXY> fell 0.6 percent as waning
anxiety about Dubai limited the greenback's safe-haven appeal.
The index measures the dollar's performance against a basket of
major currencies. [ID:nN01332891]
                                
 U.S. crude oil futures gained $1.09 to settle at $78.37 a
barrel, while the S&P Energy Index <.GSPE> advanced 1.4
percent. Shares of Exxon Mobil Corp <XOM.N> shot up 1.3 percent
to $76.04.
                                
 In the day's housing data, sales advanced to their highest
level in 3-1/2 years, according to a report from the National
Association of Realtors.
                                
 Other data showed construction spending was flat in
October, above the expectation for it to slide in the month. In
addition, the Institute for Supply Management said that the
manufacturing sector expanded in November, though the expansion
was less than expected. [ID:nN01482360] and [ID:nN01377451]
                                
 Staples Inc <SPLS.O> rose 4.8 percent to $24.44 after it
reported adjusted third-quarter earnings that beat expectations
and forecast sales growth in its fourth quarter.
[ID:nN30469390]
 ((Additional reporting by Ryan Vlastelica; Editing by Jan
Paschal)
 ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393;
Reuters
Messaging:caroline.valetkevitch.reuters.com@reuters.net))
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