CORRECTED - US STOCKS-Wall St bounces with dollar, earnings

(Fixes first paragraph to make clear dollar rose on Tuesday)

* Airline stocks surge after earnings results

* Materials shares boosted by commodities, lower dollar

* Indexes up: Dow 1.4 pct; S&P 1.3 pct; Nasdaq 1.2 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates to late afternoon, changes byline)

By Edward Krudy

NEW YORK, Oct 20 (Reuters) - Wall Street bounced back on Wednesday on strong corporate earnings and raised outlooks, while a reversal of Tuesday's rise in the U.S. dollar lifted shares of natural resource companies.

Equities and the greenback have had an inverse relationship lately, with the weaker dollar boosting companies tied to resources or with major operations overseas. After the dollar's rise on a surprise Chinese interest rate hike on Tuesday, the currency's change of fortune prompted a snap-back in stocks.

"The dollar has completely reversed its recent jump, so the market is also reversing a lot of the losses that it saw yesterday," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co. in San Francisco.

Materials shares led the broad market higher, with Freeport-McMoRan Copper & Gold gaining 3.6 percent to $96.09 and the S&P materials index <.GSPM> up 2.6 percent. Commodities gained as the U.S. dollar dropped to a near 15-year low against the yen.

The Dow Jones industrial average <.DJI> gained 157.50 points, or 1.43 percent, to 11,136.12. The Standard & Poor's 500 Index <.SPX> rose 15.33 points, or 1.31 percent, to 1,181.23. The Nasdaq Composite Index <.IXIC> added 28.59 points, or 1.17 percent, to 2,465.54.

The Boeing Company gave the biggest boost to the Dow, up 3.7 percent at $71.63. The company reported a quarterly profit that beat expectations and raised its full-year forecast, helped by a recovery in the commercial airplane market. For details, see [ID:nN19134234].

Delta Air Lines and US Airways Group jumped after they reported strong profits. Delta surged 11.5 percent to $13.04 and US Airways jumped 8.6 percent to $10.96. [ID:nN19134234][ID:nN20203615]

Eaton Corp was among major industrial companies that raised their profit forecasts for the rest of the year, sending its shares up 4 percent at $86.76. [ID:nN20189184]

Earnings from financial companies were mixed. Wells Fargo & Co reported higher earnings, but Morgan Stanley reported a surprise loss. [ID:nN20138587] [ID:nN20189694]

Wells Fargo rose 5.3 percent to $25.85, while Morgan Stanley fell 0.4 percent to $25.29. US Bancorp reported higher earnings but was down 0.2 percent at $22.76.

Regional banks weighed on the KBW Bank Index <.BKX>, off 0.5 percent, after Marshall & Ilsley Corp reported a larger-than-expected loss. Shares of Wisconsin's largest bank lost 9.1 percent to $6.32. [ID:nN20187897]

Much of Wall Street's gains since the end of the summer have come from expectations the Federal Reserve will act to bolster the economy.

Keeping those expectations alive, the Fed said in its anecdotal report known as the Beige Book that the U.S. economy grew sluggishly in recent weeks, with scant inflation pressures. Employers were reluctant to hire or invest amid economic and policy uncertainties, it said. [ID:nN20228055].

The gains came the day after stocks posted their biggest loss in two months, suggesting investors thought Tuesday's slide was overdone. (Reporting by Edward Krudy; Editing by Kenneth Barry)