GLOBAL MARKETS-Stocks recover from early wobble, dollar mixed

* Upbeat U.S. earnings overcome weak US jobs data

* Greenback has only brief respite from losses vs euro

* Ericsson results disappoint, tars European stocks (Updates with U.S. markets close, comment)

By Daniel Bases

NEW YORK, Oct 22 (Reuters) - U.S. stocks rose on Thursday, propelled by upbeat corporate earnings reports, particularly from financial and consumer companies, which overcame disappointing U.S. weekly jobless data.

The U.S. dollar strengthened broadly but gave up some ground against the euro to weaken back above the $1.50 mark after profit-taking early in the session combined with concerns about the fragile U.S. jobs market sparked a greenback rally.

While the rally against the euro faded, the dollar's advance against a basket of major currencies contributed to weakness in oil prices while gold recovered from early losses.

Disappointing results from telecoms maker Ericsson soured the mood in European stock markets.

On Wall Street, the Dow Jones industrial average <.DJI> gained 131.95 points, or 1.33 percent, to close at 10,081.31 points. The Standard & Poor's 500 Index <.SPX> gained 11.51 points, or 1.06 percent, to 1,092.91. The Nasdaq Composite Index <.IXIC> rose 14.56 points, or 0.68 percent, at 2,165.29.

Solid earnings from Dow components Travelers Cos Inc , the largest U.S. publicly traded property-casualty insurer, 3M , a diversified technology company, and fast food giant McDonald's Corp helped lift the index.

"Stocks have been slowly inching their way up. Financials have clearly been an outperformer after being a leader on the downside yesterday," said Michael James, senior trader at Wedbush Morgan in Los Angeles.

But a bigger-than-expected rise in the number of U.S workers filing new claims for unemployment benefits last week indicated the jobs market remains fragile, undermining the optimism generated by the corporate results. For details, see [ID:nN22541121]

One index of U.S. leading economic indicators rose to its highest since October 2007, marking a string of gains for the past six months through September. [ID:nN22198158]

Yields on U.S. Treasuries rose as investors sold debt amid persistent concerns about massive amounts of pending government debt issuance.

In Europe, euro zone government debt prices rose late in the session as investors switched to safer German Bunds after ratings agency Fitch downgraded Greece's sovereign debt.

Ericsson posted lower-than-expected third-quarter core earnings and said sales in its key mobile networks market were hampered by tough market conditions.

China's economic growth increased in the last quarter but fell short of some of the more optimistic expectations. Stocks in Shanghai closed lower. [ID:nSP452724]

FLEETING RISE

Unsettled investors looked early on to the U.S. dollar for a measure of safety, helping it recover ground versus the euro and yen.

The greenback has traded in inverse correlation to equities in recent months, based on shifting investor risk appetite.

But as U.S. stocks regained their footing, the dollar slipped against the euro, hovering just below Wednesday's 14-month low.

In late New York trade, the euro traded up 0.18 percent at $1.5034 from a previous session close of $1.5008. The dollar hit a one-month peak against the yen of 91.70 before drifting back to 91.27, up 0.31 percent from a previous session close of 90.990.

Since April, the dollar has lost nearly 12 percent against six other major currencies, with heavy selling in recent weeks pushing it to multimonth lows. On Thursday, the U.S. dollar index <.DXY> rose 0.11 percent to 75.052 from a previous session close of 74.972.

The uneven gains for the dollar put downward pressure on oil. Crude oil prices dipped 8 cents, or 0.1 percent, to $81.29 per barrel, down from Wednesday's one-year high. Spot gold rose 70 cents, or 0.07 percent, to $1,059.60 an ounce.

Analysts said another trigger for the dollar's gains were fears that China may start considering withdrawing some of its emergency stimulus programs after data showed the economy grew by a robust 8.9 percent in the third quarter.

But the government said it would retain its ultra-loose monetary and fiscal policies, and China-based analysts added growth was not strong enough to trigger a policy tightening.

"There are fears that when there is a removal of stimulus the underlying fundamentals won't be enough to drive global growth," said Camilla Sutton, senior currency strategist at Scotia Capital in Toronto. "But the truth is there is a lot of growth coming out of China and that whole region."

World stocks as measured by MSCI <.MIWD00000PUS> gained 0.05 percent with the emerging market component off around 0.50 percent <.MSCIEF>.

Europe's FTSEurofirst 300 <.FTEU3> lost 1.09 percent. Japan's Nikkei <.N225> closed down 0.64 percent. (To read Reuters Global Investing blog, click on http://blogs.reuters.com/globalinvesting. For the MacroScope blog, click on http://blogs.reuters.com/macroscope. For Hedge Fund blog, click on http://blogs.reuters.com/hedgehub)