* Oil jumps on surprise U.S. crude inventory draw
* Yen rebound weighs on dollar
* Earnings drag U.S., European stocks lower
(Updates with opening of U.S. markets)
By Lewis Krauskopf
NEW YORK, May 11 (Reuters) - U.S. and European stocks
stumbled on Wednesday after big gains a day earlier amid
disappointing corporate earnings, while the U.S. dollar was set
to snap a six-session rally.
Oil prices surged for a second day as data showed U.S. crude
stockpiles fell unexpectedly last week.
The yen rebounded 0.6 percent against the dollar, halting
declines against the greenback as Japan has threatened to
intervene on its currency. Against a basket of currencies
including the yen, the dollar fell 0.6 percent.
MSCI's broad gauge of global stocks .MIWD00000PUS fell 0.2
percent. On Tuesday, the index climbed nearly 1.1 percent, its
best session in about a month, while the U.S. benchmark S&P 500
had tallied its best day in about two months.
"There was no one real catalyst of any strength that really
moved our market higher yesterday, so I think the movement that
we're seeing today is just a natural selloff," said Jonathan
Corpina, senior managing partner for Meridian Equity Partners in
New York.
The Dow Jones industrial average .DJI was falling 109.65
points, or 0.61 percent, at 17,818.7, the S&P 500 .SPX was
losing 8.85 points, or 0.42 percent, at 2,075.54 and the Nasdaq
Composite .IXIC was dropping 17.51 points, or 0.36 percent, at
4,792.37.
Disappointing profit reports from Disney DIS.N and Macy's
M.N hurt stocks, with Disney the biggest drag on the Dow and
the S&P 500, and Macy's weighing on retailers.
With first-quarter earnings season largely complete, S&P 500
companies have mostly beaten analysts' expectations, but profits
are still estimated to have fallen 5.4 percent from a year ago,
according to Thomson Reuters data.
The pan-European FTSEurofirst 300 .FTEU3 index fell 0.5
percent after two sessions of gains. Outdoor advertising group
JC Decaux JCDX.PA was among the worst performers after a weak
outlook.
The dollar fell as investors booked profits on a day with no
major U.S. economic data.
"The dollar's bias hasn't meaningfully brightened given deep
market scepticism in the Federal Reserve firing an interest rate
hike in the near future," said Joe Manimbo, senior market
analyst at Western Union Business Solutions in Washington.
Oil prices jumped after the U.S. government reported a big
U.S. crude inventory draw for last week, surprising analysts who
had expected a build instead.
Benchmark Brent LCOc1 rose 3.4 percent at $47.06 a barrel,
while U.S. crude gained 2.8 percent to $45.90 a barrel. Oil
prices have recovered some ground after touching 12-year lows
earlier in 2016.
U.S. Treasuries were steady before the Treasury was due to
sell $23 billion in 10-year notes, part of $62 billion in new
coupon-bearing debt this week.
Benchmark 10-year Treasury notes US10YT=RR gained 2/32 in
price to yield 1.7525 percent, from a close of 1.76 percent on
Tuesday.
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