(Corrects paragraph 11 by removing reference to LDK Solar naming a new chief financial officer, in comment sent at 10:35 a.m. and repeated at noon)
* Gymboree soars on takeover deal
* Dollar edges lower on hopes Fed will ease
* Indexes up: Dow 0.1 pct, S&P 0.2 pct, Nasdaq 0.3 pct * For up-to-the-minute market news see [STXNEWS/US] (Updates to early morning)
By Chuck Mikolajczak
NEW YORK, Oct 11 (Reuters) - U.S. stocks edged higher on Monday on expectations the U.S. Federal Reserve will almost certainly bolster the economic recovery with another round of quantitative easing.
The dollar shed 0.1 percent against a basket of other major currencies <.DXY> as the Fed looked set to inject more cash into the economy, but with bets against the greenback piling up, traders were wary about pushing it lower.
The dollar and equities have been inversely correlated as investors leave the perceived safety of the greenback to put money into equities. For details, see [ID:nN11137639]
"We've seen it for a while, since mid-September, the dollar sliding in value on the high likelihood that we will see more quantitative easing coming out of the Fed," said Tim Ghriskey, chief investment officer at Solaris Asset Management in Bedford Hills, New York.
"And we will continue to see that expectation until the Fed actually does something and states that they are done, at least, for the time being."
The dollar was also affected after the International Monetary Fund's member countries failed to defuse currency tensions over the weekend. [ID:nN07222462]
The Dow Jones industrial average <.DJI> gained 15.28 points, or 0.14 percent, to 11,021.76. The Standard & Poor's 500 Index <.SPX> added 2.31 points, or 0.20 percent, to 1,167.46. The Nasdaq Composite Index <.IXIC> rose 6.22 points, or 0.26 percent, to 2,408.13.
As quarterly earnings season ramps up this week, investors will look at corporate revenue outlooks to take a pulse on the health of the economy.
"There will continue to be the focus on revenue growth because that demonstrates real organic growth for companies. Earnings are great, but there is a limit to how much you can cut costs, especially with productivity near record highs and workers really squeezed to the bone," added Ghriskey.
Gymboree Corp
Shares of LDK Solar Co Ltd
CNOOC Ltd <0883.HK>, China's top offshore oil producer,
will pay $1.1 billion for a stake in a Chesapeake Energy Corp