Trader's Highlight

DJI-NEW YORK, July 26 (Reuters) - An upbeat outlook from FedEx, coupled with encouraging home sales, lifted U.S. stocks on Monday, keeping the S&P 500 above 1,100for a second day and suggesting the rally could last.

FedEx Corp raised its outlook, boosting its stock by 5.6 percent. The news from the package delivery and business services company validates the optimism of those who believe the economic recovery is less fragile than recently thought.

The Dow Jones industrial average <.DJI> gained 100.81 points, or 0.97 percent, to 10,525.43. The Standard & Poor's 500 Index <.SPX> rose 12.35 points, or 1.12 percent, to 1,115.01. The Nasdaq Composite Index <.IXIC> advanced 26.96 points, or 1.19 percent, to close at 2,296.43.

NYMEX-NEW YORK, July 26 (Reuters) - U.S. crude oil futures settled unchanged on Monday after seesawing as strong U.S. new home sales data and positive corporate guidance lifted equities and supported oil, while restarted offshore production after a fizzled tropical storm kept oil prices in check.

On the New York Mercantile Exchange, September crude settled unchanged at $78.98 a barrel, having seesawed between $78.06 to $79.33. Monday's intraday high of $79.33 was below Friday's 11-week peak of $79.60, the highest front-month crude price since $80.39 was struck on May 6.

CBOT-CHICAGO, July 26 (Reuters) - Chicago Board of Trade grain and soy complex closing trends at on Monday.

CBOT-SOYBEANS - August down 18-3/4 cents at $9.98-1/4 per bushel; new-crop November down 15-1/2 at $9.66. Spot month falls below $10; biggest one-day percentage drop since June 4 on technical selling and profit-taking following a two-week rally. Additional weight from overall good crop weather in the U.S. Midwest.

CBOT-SOYOIL - August down 0.27 cent at 38.80 cent per lb. Funds sold 1,500 contracts

FCPO-KUALA LUMPUR, July 26 (Reuters) - Malaysian crude palm oil ended 1 percent lower on Monday, after data showed a drop in palm oil exports in the first three weeks of July, indicating weak overseas demand.

Cargo surveyors Intertek Testing Service and Societe Generale de Surveillance showed exports of Malaysian palm oil products for July 1 to 25 fell by at least 1 percent.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange lost 25 ringgit, or 1 percent, to 2,473 Malaysian ringgit ($773.1) after touching an intraday low at 2,472 ringgit. Overall volumes stood at 18,236 lots of 25 tonnes each.

REGIONAL EQUITIES-COLOMBO, July 26 (Reuters) - Indonesian stocks slipped from record highs on Monday and most other Southeast Asian markets also retreated as traders took profits on their recent rally, ignoring gains in broader markets after the release of European bank stress test results.

Indonesia <.JKSE>, the region's best performing market this year, bolted to a fresh intra-day record high of 3,062.95 before ending at 3,023.69, down 0.6 percent from its best all-time close recorded on Friday.

Singapore <.FTSTI> closed 0.2 percent weaker, easing from three-month highs, while Vietnam <.VNI> fell 0.4 percent and the Philippines <.PSI> edged down 0.1 percent. But Malaysia <.KLSE> bucked the trend, rising 0.5 percent to its highest level in more than 28 months.

In Singapore, Southeast Asia's top lender DBS Group Holdings fell 0.8 percent and Oversea Chinese Banking Corporation closed down 0.3 percent.

After the market closed, Singapore Airlines , the world's second-largest airline, posted $253 million net profit in its first quarter, beating forecasts as a recovery in air travel and cargo volume gathered pace. Earlier, SIA shares had slipped 0.1 percent.

In Kuala Lumpur, the index hit its highest since March 3, 2008, led by a 3.3 percent rise in financial CIMB Group .