Wall Street: Monday close

SHARES surged as investors shifted their focus beyond anthrax and bombs falling in Afghanistan to the potential for economic recovery. Techs and financials led the rally in US markets, fresh from their first losing week in a month. The Dow Jones Industrial Average leapt 172.92 points or 1.9% to 9,377.03. The Nasdaq Index rose 36.78 points or 2.2% to 1798.09

Larry Wachtel, veteran market analyst at Prudential Securities, said investors were looking past current uncertainty. 'The theme that the market's trying to sound right now, is that we know that there's bioterrorism, we know there's a war going on - you can't dwell on that day by day, minute by minute, and we think that given the stimulus that is in the pipeline, there's a recovery coming,' he said.

Charles Payne, head strategist at Wall Street Strategies, said markets appeared to have factored in some uncertainty, but could face further hurdles in the days ahead: 'But we could have come to grips with the anthrax scare.'

New data appeared to lend little weight to hopes for an immediate economic rebound. The Conference Board said its index of Leading Economic Indicators fell 0.5% in September, the biggest drop since January. The data matched economists' expectations which look toward an economic recovery sometime next year.

Better-than-expected earnings from American Express boosted the financial sector. The credit card giant posted quarterly profits down 17% from the same period a year ago, but still topped Wall Street estimates. Its shares jumped $1 or 3.4% to $30.32. Merrill Lynch, which last week announced big staff cuts, rose another $1.30 or 3% to $45. JP Morgan Chase tacked on $1.44 or 4.3% to $35.31.

Intel, the world's biggest semiconductor maker, led the tech rally, rising $1.15 or 4.8% to $25.30 on renewed hopes that its prospects will improve by year's end. Drugs maker Merck powered ahead $1.88 or 2.9% to $67.26 on positive analyst comments on the drug sector.

Toymaker Hasbro, with names like Pokemon, Tonka and GI Joe leading its brands, added 86 cents or 5.1% to $18.30 as its bottom line was boosted by cost-cutting and stronger US sales. Analysts said Hasbro appeared well-positioned for the holiday shopping season.

Lexmark, the world's second biggest printer maker, tumbled $5.58 or 11% to $44.77 after it said it would cut 1,600 jobs or 12% of its workforce as its business continues to sag.

Enron, the nation's biggest energy trader, slid $5.40 or 21% to $20.65 as the Securities and Exchange Commission asked for information regarding 'certain related party transactions.' The shares fell 27% last week on reports that ventures run by its chief financial officer could hurt its investments.

Boeing gained 25 cents or 0.8% to $33.70. The aircraft maker is one of two finalists for the $200bn (£145bn) military jet fighter contract due to be announced on Friday.

3M, the maker of Scotch tape and Post It notes, gained $5.22 or 5.1% to $107.39 analysts said they saw hope of a rebound in its latest quarterly report despite a 21% drop in profits.

SBC, America's second biggest 'Baby Bell' local telephone company, shed $2.24 or 5.1% to $41 after it said it would cut 'several thousand jobs' to cope with tougher times.