US STOCKS-Indexes rise 1 pct on weaker dollar, data

* CPI, industrial output top estimates

* Weaker dollar boosts stocks

* Indexes up: Dow by 1 pct, S&P 1.3 pct, Nasdaq 1.2 pct (Updates to early afternoon, changes byline)

By Caroline Valetkevitch

NEW YORK, Sept 16 (Reuters) - U.S. stocks rose 1 percent on Wednesday, helped by weakness in the dollar and data showing a rise in industrial output.

Shares of industrial companies with heavy overseas business that benefit from a weaker dollar gained, including General Electric Co (GE.N), up 6.1 percent at $16.98.

The dollar's decline also boosted commodities prices, which in turn lifted shares of natural resource companies.

"The dollar continues to get pounded. That translates into higher commodity stocks, and industrials continue to be a beneficiary," of the dollar's weakness, said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.

The Dow Jones industrial average .DJI was up 100.51 points, or 1.04 percent, at 9,783.92. The Standard & Poor's 500 Index .SPX rose 14.15 points, or 1.34 percent, at 1,066.78. The Nasdaq Composite Index .IXIC jumped 25.83 points, or 1.23 percent, at 2,128.47.

The dollar dropped to near one-year lows against the euro and a basket of currencies.

U.S. industrial output advanced for a second consecutive month in August, while higher gasoline costs pushed up consumer prices, although economists said the risk of inflation remained low. For details, see [ID:nN16118540]

Adding to the positive tone was the latest sign that merger and acquisition activity was picking up. Adobe Systems Inc (ADBE.O) said it plans to pay $1.8 billion for Omniture Inc, OMTR.O whose software analyzes Web traffic. Adobe, the maker of Photoshop and Acrobat software, is looking to turn around declining sales. [ID:nN15465772]

Adobe was down 6.3 percent at $33.38, while Omniture advanced 26.7 percent to $21.95.

HMO shares advanced after Democrat Senator Max Baucus said his health-care overhaul can pass the Senate. A health-care stock index .HMO was up 1.3 percent.

Shares of Exxon Mobil Corp (XOM.N) gained 1.1 percent to $70.24 as oil futures CLc1 rose 2 percent. (Reporting by Caroline Valetkevitch; editing by Jeffrey Benkoe)