Wall Street report: Friday close

A RELIEF rally sent shares rocketing after America's Independence Day celebrations passed without a major terrorist attack. The Dow Jones Industrial Average followed through on a late Wednesday surge to close up 324.74 points or 3.6% to 9379.71, its biggest advance of the year.

The Nasdaq jumped 68.28 points or 4.9% to 1448.45 after setting five-year lows earlier in the week. The Dow gained 1.5% during the holiday-shortened week, while the Nasdaq retreated 1%.

Analysts said the extent of the rally indicated how nervous investors had become prior to the national holiday. Warnings of a terrorist attack from Washington, coupled with a string of accounting missteps, had sent the Dow tumbling 230 points and the Nasdaq diving 7% in the first two sessions of the week.

Economic data released before the opening bell did not appear to influence trading. The unemployment rate rose to 5.9% in June, from 5.8% in May, and the number of jobs created during the latest month were half what economists had predicted.

But William Sullivan, senior economist at Morgan Stanley, said the jobs report did not change the general view of the economy. 'This data indicates that the economy is largely flat,' he said. 'It is clear that market conditions have tightened and that is making it more difficult for business to expand.' He cited falling equity prices and tougher lending standards for borrowers as factors in the slower pace of job growth.

Investors were willing to chase battered shares with WorldCom higher by three cents or 14% to 25 cents. The shares were due to be delisted from the Nasdaq at the close of trading. Rival AT&T, which has also been hammered in the telecoms meltdown, recouped 57 cents or 6% to $10.19.

Tech stocks sped higher on buying across the board. Intel, which has been marked down lately on diminishing sales growth expectations in semiconductors, rose $1.79 or 10% to $19.54. Microsoft added $2.43 or 4.6% to $54.90. Hewlett-Packard firmed $1.08 or 7% to $16.30. Cisco Systems regained 98 cents or 8% to $14.02.

Financial services shares joined the rally, with Citigroup up $2.54 or 7% to $39.55 and JP Morgan higher by $1.64 or 5.3% at $32.59.