* U.S. stocks slip despite demand signs from Intel, Dell
* U.S. dollar dips vs euro; risk trades still in focus
* Bonds rise as choppy stocks revive safety bid
* Oil rises slightly in choppy trading (Updates with U.S. markets activity, changes dateline; previous LONDON)
By Herbert Lash
NEW YORK, Aug 28 (Reuters) - U.S. stocks skidded on Friday despite rising equity markets elsewhere and signs of strong consumer demand from technology bellwethers Intel and Dell, while oil rose slightly as hopes of recovery lingered.
The U.S. dollar slipped against the euro in thin trade, with investors sticking to riskier currency bets even as a report showed U.S. consumer confidence fell to a four-month trough in August on worries over unemployment. [ID:nN28409110]
The weak reading on consumer sentiment and a modest rise in consumer spending revived a safety bid for government bonds, helping U.S. Treasury debt prices mostly rise. [ID:nN28413051]
However, shares in Europe hit a 10-month closing high on
optimism for a global economic recovery while the strong demand
outlook from Intel and Dell boosted shares of Nokia
U.S. stocks gave up most of their gains after initially spiking to 10-month highs as the weak consumer sentiment data offset news from the two tech companies. [ID:nN28366560]
Shares of chip maker Intel
Computer maker Dell gained 2 percent after at least nine brokerages raised their price targets.
"You would think after the Intel blowout numbers the market would have really picked up a lot of steam," said Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets in Baltimore.
"It's just telling you that this market has about as much good news baked into as it can take. We're at that point now where there is no more good news that could come out that can really juice this market."
Shortly after 1 p.m., the Dow Jones industrial average <.DJI> was down 64.09 points, or 0.67 percent, at 9,516.54. The Standard & Poor's 500 Index <.SPX> was down 6.33 points, or 0.61 percent, at 1,024.65. The Nasdaq Composite Index <.IXIC> was down 8.69 points, or 0.43 percent, at 2,019.04.
Britain's leading share index <.FTSE> closed 0.8 percent higher and the FTSEurofirst 300 index <.FTEU3> of top European shares hit a 10-month closing high.
The pan-regional index rose 1.1 percent to close at 978.34 points, its highest close since Oct. 7.
"The world economy is doing well, French and German GDP are positive, but that's not surprising given the amount of stimulus being pumped into the market," said Andy Lynch, fund manager at Schroders.
"I have a concern about what happens when the sugar rush is withdrawn, though that may be a problem for 2010, rather than now," Lynch said.
U.S. crude for October
Copper climbed to an 11-month high, buoyed by improving economic and demand expectations. [ID:nLS627179]
Copper for three month delivery
Government debt prices were higher. The benchmark 10-year U.S. Treasury note
"Investors still have to be worried about the sustainability of the recovery. It's clear to me that we cannot count on growth through next year as long as consumers are still on the ropes," said Christopher Low, chief economist at FTN Financial in New York.
Euro zone government bonds also rose as sustainability concerns outweighed gains in European equities. [ID:nLS462826]
The dollar and yen, which are viewed as safe-haven currencies, fell.
"This morning's U.S. economic data was mixed but the price action in the currency market indicates traders are struggling to remain optimistic," said Kathy Lien, director of currency research at GFT in New York.
In midday New York trading, the euro was up 0.2 percent on the day versus the dollar to $1.4330
Most Asian equity markets edged higher, led by technology shares as confidence in a sustainable recovery grew. Japan's Nikkei share average <.N225> finished up 0.6 percent, just shy of the highest intraday level since Oct 6. MSCI's index of Asia Pacific stocks outside Japan rose 0.8 percent <.MIAPJ0000PUS>. (Reporting by Richard Valdmanis, Gertrude Chavez-Dreyfuss, Richard Leong and Rodrigo Campos in New York; Jessica Mortimer, Brian Gorman in London; writing by Herbert Lash)