DISEASE CHARACTERISTICS:

• Histologically proven acute myelogenous leukemia of one of the following types:

  • Acute myeloblastic leukemia (FAB type M0, M1, or M2)
  • Acute promyelocytic leukemia (FAB type M3) allowed if ineligible for an ECOG M3 protocol or if no tretinoin or arsenic trioxide therapy is planned
  • Acute myelomonocytic leukemia (FAB type M4)
  • Acute monocytic leukemia (FAB type M5)
  • Acute erythroleukemia (FAB type M6)
  • Acute megakaryocytic leukemia (FAB type M7)

• Must meet 1 of the following criteria:

  • Relapse less than 6 months after first complete remission (CR)
  • Relapse 6-12 months after first CR

  • Refractory to conventional initial induction chemotherapy (no more than 2 courses) or first reinduction (no more than 1 course)

    • Must have marrow documentation of residual leukemia after chemotherapy (for at least 2 weeks duration)
  • Second or greater relapse
• No relapse greater than 1 year after achieving first CR
• Blast cells must be CD33 positive
• Prior CNS leukemia allowed if there is currently documentation of no CNS involvement on CSF examination (i.e., negative CSF by lumbar puncture)

PATIENT CHARACTERISTICS:

Age:

• 18 and over

Performance status:

• ECOG 0-2

Life expectancy:

• Not specified

Hematopoietic:

• See Disease Characteristics

Hepatic:

• Bilirubin no greater than 2.0 mg/dL*
• SGOT less than 2 times upper limit of normal* NOTE: *Unless due to leukemia infiltration

Renal:

• Creatinine no greater than 2.0 mg/dL

Cardiovascular:

• See Chemotherapy
• No myocardial infarction within the past 3 months
• No significant congestive heart failure
• No significant cardiac arrhythmia
• Cardiac ejection fraction normal by MUGA scan or echocardiogram
• Resting ejection fraction at least 50% or at least 5% increase with exercise
• Shortening fraction at least 24% or normal by echocardiogram

Other:

• Not pregnant or nursing
• Fertile patients must use effective contraception
• No concurrent organ damage or other medical problems that would precludestudy therapy
• No concurrent evidence (including positive blood or deep tissue cultures or stains) of invasive fungal infection
• No hypersensitivity to ingredients of gemtuzumab ozogamicin or daunorubicin liposomal
• No other active tumor that would interfere with study therapy or increase risk

PRIOR CONCURRENT THERAPY:

Biologic therapy:

• No prior gemtuzumab ozogamicin

Chemotherapy:

• See Disease Characteristics
• See Biologic therapy
• No prior daunorubicin liposomal or topotecan
• Prior doxorubicin (no greater than 300 mg/m2), daunorubicin (no greater than 300 mg/m2), idarubicin (no greater than 100 mg/m2), or mitoxantrone (no greater than 100 mg/m2) allowed if left ventricular function is adequate
• At least 4 weeks since prior chemotherapy except patients who are refractory to conventional initial induction chemotherapy
• Prior hydroxyurea allowed within 4 weeks prior to beginning study
• Hydroxyurea must be discontinued at least 24 hours prior to beginning study

Endocrine therapy:

• Not specified

Radiotherapy:

• At least 4 weeks since prior radiotherapy except patients who are refractory to conventional initial induction chemotherapy

Surgery:

• Not specified