Published: 23 Jul 2009 17:43:36 PST * Dow tops 9,000 on earnings, U.S. housing data * Oil prices soar to three-week high on Wall Street's rise * Dollar, euro gain vs yen as US data spurs recovery hopes * Stocks rally, looming supply knock government debt lower (Adds close of U.S. markets) NEW YORK, July 23 - Crude oil jumped and Wall Street surged 2 percent on Thursday, pushing the Dow to an eight-month closing high, after improving U.S. home sales and strong corporate results spurred optimism that economic recovery is under way. The Dow pushed above the 9,000 mark, rising 188 points, in a broad rally that lifted all 10 sectors of the benchmark S&P 500 into positive territory. The Nasdaq posted its 12th consecutive gain -- its longest winning streak since 1992. Asian stocks climbed to a 10-month high, European shares hit an eight-month high and emerging markets ended at 10-month highs. The dollar and euro rallied against the yen and government debt prices fell as the upbeat corporate results and U.S. housing data dented demand for safe-haven assets. Crude oil rose to a three-week high over $67 a barrel while copper, widely viewed as a harbinger of economic activity because of its industrial use, reversed losses to hit a nine-month high. "The data that we saw today, coupled with some of earnings reports, are increasing the momentum that we're likely to see a recovery this year," said Joe Manimbo, a currency trader at Travelex Global Business Payments in Washington. The VIX, a measure of investor sentiment known as Wall Street's fear gauge, fell to its lowest point since early September, just before the collapse of Lehman Brothers sparked the deepest bear market since World War Two. U.S. stocks were spurred by stronger second-quarter corporate earnings and outlooks. Results from bellwethers, including AT&T Inc on Thursday and eBay Inc after Wednesday's market close, ignited a rally that lifted all three major U.S. stock indexes to 2009 highs. U.S. existing-home sales in June notched their third monthly rise, a sign that the housing industry was slowly healing. New jobless benefits claims, however, rose last week. The Dow Jones industrial average closed up 188.03 points, or 2.03 percent, to 9,069.29 -- its highest close since November and first close above 9,000 since January. The Standard & Poor's 500 Index gained 22.22 points, or 2.33 percent, to 976.29. The Nasdaq Composite Index climbed 47.22 points, or 2.45 percent, at 1,973.60. The FTSEurofirst 300 index of top European shares closed up 2 percent at 908.15 points in its longest winning streak since late 2006. "A lot of this optimism is priced into the market. The concern does remain that perhaps the market has gotten ahead of itself in terms of the fundamentals and could be vulnerable to a decent correction," said Matthew Zeman, head of trading with LaSalle Futures Group in Chicago. U.S. crude oil rose $1.76 to settle at $67.16 a barrel, the highest since July 1, while London Brent rose $2.04 to $69.25. The euro climbed to $1.4291, the strongest level since early June, before paring gains to trade little changed at $1.4206. The dollar gained 1.8 percent to 95.25 yen after hitting a more than two-week high at 95.29 yen. The price of 30-year U.S. Treasury bonds dropped two full points on the day, and seven-year notes lost a point, as the rally in stocks eroded the safe-haven bid for government debt. The price of 10-year Treasuries fell 1-8/3 to yield 3.71 percent, while 30-year bonds were 2-10/32 lower in price, yielding 4.60 percent. Copper for September delivery in New York eased 0.15 cent to end at $2.5240 a pound. U.S. gold for August delivery settled up $1.50 at $954.80 an ounce in New York. The MSCI index of Asia Pacific shares outside Japan rose to 1.25 percent, furthering an earlier rise in Asia. Japan's Nikkei share average ended 0.7 percent

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