YAHOO [BRIEFING.COM]: A drop by the dollar and another big batch of better-than-expected earnings announcements helped stocks recover from the prior session's slide, though some of the stock market's gain faded into the close.

The dollar surged 1.7% in the prior session, but was dumped this session for a 1.3% loss in what appeared to be a diminished sense of risk aversion.

That said, support for commodity-backed stocks and basic materials plays drove the materials sector to a 2.0% gain, which was the best of any major sector. All 31 members in the materials sector advanced.

Shares of airlines staged some of the biggest gains. As such, AMR Corp (AMR 7.36, +0.84), US Airways (LCC 10.84, +0.75), and Delta Air Lines (DAL 12.97, +1.27) helped drive the Amex Airline Index to a 5.3% gain and its highest level in almost three years. All three air carriers reported better-than-expected earnings.

Internet search outfit Yahoo! (YHOO 15.80, +0.31) also reported an upside earnings surprise, but it issued a rather weak forecast. Dow components United Technologies (UTX 73.92, +0.31) and Boeing (BA 71.36, +2.31) both posted upside earnings surprises. Each improved its earnings outlook, too.

Financials finished with a 1.1% gain after being down as much as 0.7% amid an earnings miss from regional lender Comerica (CMA 35.94, -2.45) and a messy report from Morgan Stanley (MS 25.38, -0.01). Shares of MS successfully recovered from their loss, but could not quite finish in higher ground. Meanwhile, US Bancorp (USB 22.83, +0.02) finished flat and Wells Fargo (WFC 25.60, +1.05) spiked. Both of bested bottom line expectations. BlackRock (BLK 169.51, -5.12) also posted better-than-expected earnings, but its shares fell for the fourth time in five sessions.

Amid an improved tone of trade and the dollar's downturn, commodities recovered from their selloff in the prior session. More specifically, the CRB Commodity Index dropped 1.9% in the prior session for its worst loss since June, but rebounded to a 2.1% gain today. The move was largely led by oil prices, which bounced 2.9% to $82.52 per barrel. A smaller-than-expected build in weekly oil inventories helped.

Little was made of the Fed's latest Beige Book, which was the only item on today's economic calendar. According to data from the twelve Fed Districts, national economic activity continued to rise, albeit at a modest pace, from September to early October.

It was another volatile session for commodities, as the dollar index fell sharply and pushed the CRB Commodity Index higher. All six commodities groups finished in positive territory today, led by grains (+3.2%) and energy (+1.9%). Dec corn rallied for 5% to close at $5.73 per bushel.

Dec crude oil settled higher by 2.9% to $82.52 per barrel. It rallied on weakness in the dollar index, strength in equities, and this morning's smaller-than-expected build in inventories. It closed just shy of its session highs at $82.58 per barrel. Nov natural gas finished up 0.2% to $3.54 per MMBtu after it sold off from around its highs in the close of pit trade.

Dec gold ended higher by 0.7% to $1344.20 per ounce, while Dec silver finished up 0.5% to $23.86 per ounce. Both metals managed to finish in positive territory after erasing overnight losses.

Advancing Sectors: Materials (+2.0%), Energy (+1.4%), Telecom (+1.4%), Industrials (+1.3%), Consumer Discretionary (+1.2%), Financials (+1.1%), Tech (+0.8%), Utilities (+0.8%), Health Care (+0.8%), Consumer Staples (+0.6%)
Declining Sectors: (None)DJ30 +129.35 NASDAQ +20.44 NQ100 +0.8% R2K +1.2% SP400 +1.3% SP500 +12.27 NASDAQ Adv/Vol/Dec 1867/2.04 bln/770 NYSE Adv/Vol/Dec 2283/1.10 bln/716