* MSCI world shares supported by optimism about U.S. earnings
* Strong initial earnings boost risk-on sentiment, U.S. dollar
* Oil prices rise on supply disruption, chance of Iran sanctions (Updates prices, adds commentary)
By Hilary Russ
NEW YORK, July 10 (Reuters) - The S&P 500 stock index hit a four-month high on Tuesday, boosted by higher oil prices and expectations for strong earnings, while the U.S. dollar rose against the safe-haven Japanese yen as investors bought riskier assets.
World share markets remained near three-week highs, supported by optimism about U.S. company earnings and the notion that global economic growth can withstand trade tensions.
"The market is in a very optimistic mood. The economic data is very strong and the labor markets are strong, and companies are making a lot of money," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin.
The Dow Jones Industrial Average .DJI rose 131.09 points, or 0.53 percent, to 24,907.68, the S&P 500 .SPX gained 8.28 points, or 0.30 percent, to 2,792.45 and the Nasdaq Composite .IXIC dropped 1.36 points, or 0.02 percent, to 7,754.84. prices were choppy as price gains on supply concerns in Norway and Libya were tempered by the United States' indication that it would consider requests for waivers from Iranian oil sanctions. crude oil futures settled at $74.11 per barrel, up 26 cents, or 0.35 percent. U.S. crude was last up 0.26 percent at $74.04 per barrel and Brent LCOcv1 was last at $78.77, up 0.9 percent on the day.
U.S. companies are expected to report second-quarter earnings growth of over 20 percent across all sectors when earnings season kicks off this week, thanks to recent tax cuts, high oil prices and robust economic growth.
The pan-European FTSEurofirst 300 index .FTEU3 rose 0.40 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.21 percent. Treasury yields rose further after a weak 3-year note auction causing the yield to flatten further with the spread between U.S. Treasury 5-year and 30-year yields contracting to under 20 basis points. 10-year notes US10YT=RR last fell 2/32 in price to yield 2.8674 percent, from 2.86 percent late on Monday.
The risk-on sentiment nudged the U.S. dollar closer to a seven-week high against the yen JPY= . The greenback could be poised for a further boost if consumer price inflation figures come in higher than expected on Thursday. dollar index .DXY rose 0.09 percent, with the euro EUR= down 0.07 percent to $1.1741.
In Turkey, President Tayyip Erdogan's new cabinet lacked market-friendly names and included instead his son-in-law as finance minister. Turkish lira gained ground. The U.S. dollar was down 0.5 percent against the lira TRY= .
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ S&P500 earnings Q2
https://reut.rs/2IWAdDf Tech and banks win from US corporate tax cuts
https://reut.rs/2JaOigB Ups and downs of world stocks in 2018
https://reut.rs/2L2jwrT Turkey's financial market strains
https://reut.rs/2Ja8bVc GRAPHIC-Global assets in 2018
http://tmsnrt.rs/2jvdmXl GRAPHIC-Emerging markets in 2018
http://tmsnrt.rs/2ihRugV GRAPHIC-World FX rates in 2018
http://tmsnrt.rs/2egbfVh GRAPHIC-MSCI All Country World Index Market Cap
http://tmsnrt.rs/2EmTD6j
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