Trader's Highlight

DJI-NEW YORK, July 22 (Reuters) - Earnings from economic bellwethers 3M, UPS and Caterpillar catapulted U.S. stocks on Thursday as investors shed some of their fears about the strength of the recovery.

The parade of prominent names reporting profits continued after the market's close. Microsoft Corp reported a 48 percent rise in quarterly profit late on Thursday. In regular trading its shares rose 2.9 percent to $25.84, but they were down 0.2 percent after hours.

The Dow Jones industrial average <.DJI> gained 201.77 points, or 1.99 percent, to 10,322.30. The Standard & Poor's 500 <.SPX> added 24.08 points, or 2.25 percent, to 1,093.67. The Nasdaq Composite <.IXIC> rose 58.56 points, or 2.68 percent, to 2,245.89.

NYMEX-NEW YORK, July 22 (Reuters) - U.S. crude oil futures surged more than 3 percent to an 11-week high above $79 a barrel, lifted by stronger-than-expected economic data that boosted equities markets and by concerns about a tropical depression that might threaten Gulf of Mexico production.

The dollar's weakness against a basket of currencies and the euro also provided a boost as oil prices rebounded after losing more than 1 percent in the previous session. Refined products futures also rose more than 3 percent.

On the New York Mercantile Exchange, September crude rose $2.74, or 3.58 percent, to settle at $79.30 a barrel, highest close since the ending at $79.97 on May 5.

CBOT-CHICAGO, July 22 (Reuters) - Chicago Board of Trade grain and soy complex close on Thursday.

CBOT-SOYBEANS - August up 3/4 cent at $10.16 bushel; new-crop November up 1 at $9.79-1/2. Deferred months ended down 1/2 to 2-1/2 cents. Spillover support from wheat, along with hot weather in the Delta and parts of the Midwest raising concerns about potential harm to the crop. Gains limited by midday weather forecasts for more rain and less heat in the U.S. Midwest, weak cash and technical resistance.

CBOT-SOYOIL - August up 0.64 cent at 38.90 cents per lb. Buoyed by strength in soybeans, higher crude oil and a weak dollar.

FCPO-JAKARTA, July 22 (Reuters) - Malaysian crude palm oil gained 2.52 percent on Thursday after hitting two and a half month high on concern that rains may slow palm oil output and as gains in crude oil as well as soyoil offered support.

A brewing La Nina weather pattern which brings heavier-than-expected rains and comes at the heels of El Nino-driven drier weather in early 2010 may prolong weak palm oil yields despite the crop now enters high production season.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange settled up 62 ringgit to 2,519 ringgit per tonne after trading as high as 2,525 ringgit, a level that was last touched on May 10.

Overall volumes stood at 26,561 lots of 25 tonnes each, more than double the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, July 22 (Reuters) - Most Southeast Asian stock markets fell on Thursday, fretting over a downbeat economic view from the U.S. Federal Reserve, and weaknesses in energy prices dampened sentiment in the sector across the region.

Malaysia <.KLSE> eased 0.4 percent, retreating from a two-day rally to 10-week highs, Indonesia <.JKSE>, which scaled a record high at one point, ended down 0.1 percent, the Philippines <.PSI> lost 0.1 percent and Vietnam <.VNI> fell 1 percent.

Malaysia's top power producer, Tenaga Nasional , and Indonesian oil and gas firm PT Medco Energi International both fell almost 1 percent.