GLOBAL MARKETS-U.S. stocks gain on retailers shine, dollar slips

*Wall Street rises on Bernanke relief, consumer rally *Dollar slips as risk appetite gains on stocks' climb * Oil rises towards $70 a barrel on Nigeria attack * Bond prices rise as U.S. jobless date data disappoints (Adds close of U.S. markets)

By Herbert Lash

NEW YORK, June 25 (Reuters) - U.S. stocks rose on Thursday after encouraging news from retailer Bed Bath & Beyond Inc and home builder Lennar Corp, while the U.S. dollar slipped on optimism that the economy's woes were ebbing.

Investor sentiment, however, remained at cross-currents as benchmark U.S. Treasury notes rose over a full point after a surprising jump in U.S. jobless claims revived economic worries.

Copper and gold prices rebounded, spurred by the falling dollar, while oil prices rose sharply to above $70 a barrel on renewed rebel attacks in Nigeria and worries that a glitch at the largest U.S. oil refinery may tighten gasoline stockpiles.

The U.S. stock market's rally on improved risk appetite reduced the dollar's safe-haven bid, which had earlier been sparked by the unexpected rise in new claims for unemployment benefits.

Stocks also rose after Federal Reserve Chairman Ben Bernanke withstood tough grilling in Congress on whether he had coerced Chief Executive Kenneth Lewis of Bank of America to go forward with plans to buy a flagging Merrill Lynch. [ID:nN25267831]

As the testimony in the U.S. House of Representatives Oversight and Government Reform Committee wore on, however, analysts' concerns receded and stocks added to gains.

"There has been nothing in his testimony that has confirmed conspiratory theorists that he overstepped his authority," said Peter Kenny, a managing director at Knight Equity Markets in Jersey City, New Jersey.

Lennar shares shot up 17.5 percent after it posted a wider quarterly loss, but also reported an increase in new home sales and orders. [ID:nBNG21059]

Bed Bath & Beyond Inc reported a surprising increase in quarterly profit as it cut costs to offset slumping demand, and its stock soared 9.5 percent.

WALL ST JUMPS, BUT EURO SHARES LAG

The Dow Jones industrial average <.DJI> closed up 172.54 points, or 2.08 percent, at 8,472.40. The Standard & Poor's 500 Index <.SPX> rose 19.32 points, or 2.14 percent, at 920.26. The Nasdaq Composite Index <.IXIC> gained 37.20 points, or 2.08 percent, at 1,829.54.

European shares closed lower, led by drugmakers and banks, after Asia-focused Standard Chartered said it remained cautious about the economic outlook despite record levels of income and profit in the first five months of the year.

The pan-European FTSEurofirst 300 <.FTEU3> index of top shares declined 0.9 percent to end at 845.71.

The European Central Bank moved to lend banks 442.24 billion euros, its latest effort to boost liquidity, which led the bank-to-bank cost of borrowing euros to fall by the most in six months. Overnight euro Libor rates slumped by almost a percentage point to a record low.

The dollar slipped against a basket of major currencies, with the U.S. Dollar Index <.DXY> off 0.22 percent at 80.381.

The euro was up 0.46 percent at $1.3988, and against the yen, the dollar was up 0.18 percent at 95.89.

The benchmark 10-year U.S. Treasury note was up 1-4/32 in price to 96-16/32 while its yield slipped to 3.55 percent from 3.69 percent the previous day. The 2-year U.S. Treasury note rose 5/32 in price to 99-31/32 to yield 1.13 percent.

Oil rose above $70 a barrel after Nigeria's main militant group attacked a Royal Dutch Shell pipeline, heightening concern about supplies from the region.

U.S. crude futures for August rose $1.56 to settle at $70.23 a barrel. London Brent crude rose $1.45 to $69.78 a barrel.

Gold futures rose toward $940 an ounce as a weaker dollar and oil's strong gains prompted investors to pour into the bullion market.

U.S. August gold futures shot up $5.10 to settle at $939.50 an ounce in New York.

Asian stocks rallied for a second day after the Fed repeated that interest rates will be kept at a record low for a while.

The MSCI index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> rose 1.1 percent, while the Nikkei average <.N225> climbed 2.2 percent. (Reporting by Richard Valdmanis, Caroline Valetkevitch, Wanfeng Zhou, Richard Leong in New York; Dominic Lau, George Matlock, Joanne Frearson, Emelia Sithole-Matarise and David Sheppard and Nick Vinocur in London; writing by Herbert Lash; Editing by Jan Paschal)