Trader's Highlight

DJI-NEW YORK, July 20 (Reuters) - World stocks staged a late-day surge to end higher on Tuesday and Treasury prices pared gains, reversing steep losses as bargain hunters emerged amid speculation the Federal Reserve will take steps to spur lending.

For much of the day, investors had been focused on lower-than-estimated revenues at major U.S. companies and a drop in U.S. housing starts intensified worries the economic recovery was losing momentum.

The Dow Jones industrial average <.DJI> rose 75.53 points, or 0.74 percent, to close at 10,229.96. The benchmark Standard & Poor's 500 Index <.SPX> advanced 12.23 points, or 1.14 percent, to end at 1,083.48. The Nasdaq Composite Index <.IXIC> climbed 24.26 points, or 1.10 percent, to 2,222.49.

NYMEX-NEW YORK, July 20 (Reuters) - U.S. crude oil futures ended higher for a second day in a row on Tuesday as Wall Street's major indexes turned positive and traders positioned ahead of weekly petroleum inventory data forecast to show a fourth straight week of a drawdown in crude oil stockpiles.

A forecast from the National Hurricane Center showing a 60 percent chance of a tropical wave near Puerto Rico and the Dominican Republic strengthening into a tropical depression in a day or two also helped boost prices in late trading.

On the New York Mercantile Exchange, crude for August delivery , expired at the close and settled up 90 cents, or 1.18 percent, at $77.44 a barrel, trading from $75.65 to $77.57.

CBOT-CHICAGO, July 20 (Reuters) - Chicago Board of Trade grain and soy complex close on Tuesday.

CBOT-SOYBEANS - August up 3-3/4 cents at $10.11-3/4 per bushel; new-crop November up 1 at $9.73. Turning firm after early weakness; led by strength in soyoil and higher crude oil. Volume seen light. Support also from bull-spreading and firm cash.

CBOT-SOYOIL - August up 0.44 cent at 38.40 cents per lb. Gaining against soymeal as meal/oil spread correct; strength in crude oil adds support.

FCPO-JAKARTA, July 20 (Reuters) - Malaysian crude palm oil eased on midday Tuesday as investors took profit after weak key export figures and as a forecast on crop weather knocked rival soybean markets lower.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange fell 30 ringgit or 1.22 percent to 2,424 ringgit a tonne. Overall volume stood at 17,134 lots of 25 tonnes each, above the usual 10,000 lots.

REGIONAL EQUITIES-COLOMBO, July 20 (Reuters) - Indonesia's stock market ended at a closing high on Tuesday, earlier nearing the intraday peak scaled in May on demand for bank shares, but regional investors were cautious after mixed results from the U.S. tech sector.

Indonesia <.JKSE>, Southeast Asia's best performer with a return of 18.2 percent this year, closed 0.7 percent firmer, Malaysia <.KLSE> gained 0.3 percent and Singapore <.FTSTI> rose 0.1 percent.

In Singapore, Golden Agri rose 1.8 percent and Singapore Airlines gained 0.6 percent.