GLOBAL MARKETS-Stocks, crude surge as profits, data spur rally

Wall Street rallies on solid profits, recovery hopes

Oil jumps as economic data raises economic recovery hope

* Dollar slips as risk sentiment improves

By Herbert Lash

NEW YORK, July 30 - Global stocks rallied and oil surged more than 5 percent on Thursday as solid corporate results worldwide and encouraging economic data boosted sentiment that had turned skittish earlier in the week.

Commodity prices jumped, with the Reuters-Jefferies CRB index <.CRB> of 19 commodities rising 3.9 percent, its biggest daily gain since March, after a two-day sell-off.

And Long-dated U.S. Treasury bonds rebounded as fears about the appetite for U.S. government debt eased after robust demand for $28 billion in new seven-year notes. ID:[nN30286312]

U.S. equity gains were broad-based, with the Standard & Poor’s 500 Index <.SPX> hitting an almost nine-month intraday high that was less than 4 points below the key 1,000 mark. The S&P closed up

Gloomy economic picture fuels risk aversion… Financials, energy, retailers among top drags… Dow off 4.3 pct, S&P 500 off 5 pct, Nasdaq off 5.3 pct

U.S. stocks tumbled on Monday as signs of further deterioration in the economy around the world punctured last week’s market enthusiasm, with financial services companies and retailers among Wall Street’s biggest drags.

Major industrial companies also contributed to losses on signs global demand is faltering, leading investors to pare back risk in favor of safe-haven government debt.

With the holiday shopping season under way, investors feared that retailers may turn in their bleakest sales in many years. The S&P retail index declined 4.4 percent.

Department store Macy’s Inc tumbled 9.6 percent.

Consumers made repeat trips to stores and spent more on bargains this weekend, but analysts said the rush is unlikely to translate into a much-needed boost in profit.