* U.S. stocks slip despite demand signs from Intel, Dell
* U.S. dollar dips vs euro; risk trades still in focus
* Bonds rise as choppy stocks revive safety bid
* Oil rises slightly in choppy trading
(Updates with U.S. markets activity, changes dateline;
previous LONDON)
By Herbert Lash
NEW YORK, Aug 28 (Reuters) - U.S. stocks skidded on Friday
despite rising equity markets elsewhere and signs of strong
consumer demand from technology bellwethers Intel and Dell,
while oil rose slightly as hopes of recovery lingered.
The U.S. dollar slipped against the euro in thin trade,
with investors sticking to riskier currency bets even as a
report showed U.S. consumer confidence fell to a four-month
trough in August on worries over unemployment. []
The weak reading on consumer sentiment and a modest rise in
consumer spending revived a safety bid for government bonds,
helping U.S. Treasury debt prices mostly rise. []
However, shares in Europe hit a 10-month closing high on
optimism for a global economic recovery while the strong demand
outlook from Intel and Dell boosted shares of Nokia <NOK1V.HE>.
[]
U.S. stocks gave up most of their gains after initially
spiking to 10-month highs as the weak consumer sentiment data
offset news from the two tech companies. []
Shares of chip maker Intel <INTC.O> rose almost 4 percent
after it raised its third-quarter revenue outlook on
stronger-than-expected demand for microprocessors.
Computer maker Dell gained 2 percent after at least nine
brokerages raised their price targets.
"You would think after the Intel blowout numbers the market
would have really picked up a lot of steam," said Angel Mata,
managing director of listed equity trading at Stifel Nicolaus
Capital Markets in Baltimore.
"It's just telling you that this market has about as much
good news baked into as it can take. We're at that point now
where there is no more good news that could come out that can
really juice this market."
Shortly after 1 p.m., the Dow Jones industrial average
<> was down 64.09 points, or 0.67 percent, at 9,516.54. The
Standard & Poor's 500 Index <.SPX> was down 6.33 points, or
0.61 percent, at 1,024.65. The Nasdaq Composite Index <>
was down 8.69 points, or 0.43 percent, at 2,019.04.
Britain's leading share index <> closed 0.8 percent
higher and the FTSEurofirst 300 index <> of top European
shares hit a 10-month closing high.
The pan-regional index rose 1.1 percent to close at 978.34
points, its highest close since Oct. 7.
"The world economy is doing well, French and German GDP are
positive, but that's not surprising given the amount of
stimulus being pumped into the market," said Andy Lynch, fund
manager at Schroders.
"I have a concern about what happens when the sugar rush is
withdrawn, though that may be a problem for 2010, rather than
now," Lynch said.
U.S. crude for October <CLc1> rose 50 cents to $72.99.
London Brent <LCOc1> gained 50 cents to $73.01 a barrel.
Copper climbed to an 11-month high, buoyed by improving
economic and demand expectations. []
Copper for three month delivery <MCU3> on the London Metal
Exchange rose to $6,480 a tonne.
Government debt prices were higher. The benchmark 10-year
U.S. Treasury note <US10YT=RR> was up 5/32 in price to yield
3.45 percent.
"Investors still have to be worried about the
sustainability of the recovery. It's clear to me that we cannot
count on growth through next year as long as consumers are
still on the ropes," said Christopher Low, chief economist at
FTN Financial in New York.
Euro zone government bonds also rose as sustainability
concerns outweighed gains in European equities. []
The dollar and yen, which are viewed as safe-haven
currencies, fell.
"This morning's U.S. economic data was mixed but the price
action in the currency market indicates traders are struggling
to remain optimistic," said Kathy Lien, director of currency
research at GFT in New York.
In midday New York trading, the euro was up 0.2 percent on
the day versus the dollar to $1.4330 <EUR=>.
Most Asian equity markets edged higher, led by technology
shares as confidence in a sustainable recovery grew. Japan's
Nikkei share average <> finished up 0.6 percent, just shy
of the highest intraday level since Oct 6. MSCI's index of Asia
Pacific stocks outside Japan rose 0.8 percent <.MIAPJ0000PUS>.
(Reporting by Richard Valdmanis, Gertrude Chavez-Dreyfuss,
Richard Leong and Rodrigo Campos in New York; Jessica Mortimer,
Brian Gorman in London; writing by Herbert Lash)
