Commodity shares, Coca-Cola lift Wall Street

By Ellis Mnyandu

NEW YORK (Reuters) - Stocks rose on Friday, capping their third straight monthly advance, as rising commodity prices lifted shares of natural resource companies, while a sliding dollar boosted the allure of multinationals, including Coca-Cola Co (KO.N).

Investors were encouraged by a report showing in May consumer confidence hit its highest in eight months, while the run-up in commodities fueled bets that overseas demand would underpin a recovery in the global economy.

U.S. front-month crude oil futures rose $1.23 percent, or 1.8 percent, to $66.31 a barrel, supporting gains in such stocks as Chevron (CVX.N), Exxon Mobil (XOM.N) and ConocoPhillips (COP.N). The S&P energy index .GSPE rose 1.2 percent.

Shares of Coca-Cola, which gets the bulk of its sales from abroad, jumped almost 5 percent after the dollar slid to five-month lows against a basket of currencies.

The beverage maker was the Dow's top boost, followed by technology services company International Business Machines Corp (IBM.N), up 1.5 percent to $106.28.

"It's clear to me, based on the market action, that we've turned a corner in this economy," said Sasha Kostadinov, portfolio manager and research analyst at Shaker Investments in Cleveland.

"The question that I have is, when we get a clear view of what's around the corner, is it going to be better growth and moderate inflation, or is it going to be slow growth and bad inflation?"

The Dow Jones industrial average .DJI gained 96.53 points, or 1.15 percent, to 8,500.33. The Standard & Poor's 500 Index .SPX climbed 12.31 points, or 1.36 percent, to 919.14. The Nasdaq Composite Index .IXIC rose 22.54 points, or 1.29 percent, to 1,774.33.