Wall Street report: Friday close

MARKETS snapped their five-day losing streak as investors decided that shares had fallen enough due to Enronitis and 'accounting anthrax'.

A late surge lifted the Dow Jones Industrial 118.80 points or 1.2% to 9744.24. The Nasdaq Index, which suffered one of its biggest weekly drops since late September, rose 36.77 points or 2.1% to 1818.88. On the week, the Dow gave up 1.9%, while the Nasdaq dropped 5.4%.

Analysts said investors were encouraged that a 'son of Enron' had not emerged to again hammer confidence in company bookkeeping. 'Every day that goes by without another accounting blow-up, the stronger the market will become,' said one trader.

Leading markets higher were shares previously under a cloud due to accounting concerns or worries over their liquidity. Conglomerate Tyco International continued its climb after executives strove to reassure investors that its accounting was above board. Tyco shares, up 8% on Thursday, rose another $1.80 or 6.4% to $29.85.

Long distance telephone company WorldCom denied it was short of cash and its shares ran up 66 cents or 8.8% to $8.18. Irish pharmaceuticals group Elan, which is being investigated by US authorities over its bookkeeping. Elan shares, already beaten down by rumors that its accounting was suspect, regained $1.18 or 6.1% to $29.85.

Financials which had been marked down on fears over their exposure to companies caught up in what one broker called 'post-Enron conservatism' were also stronger. JP Morgan rebounded $1.05 or 3.5% to $31.12 and Citigroup recovered $1.35 or 3% to $45.49. American Express firmed 85 cents or 2.6% to $33.90.

Techs turned higher late in the day, helped by at least one high profile broker upgrade. Networking computer company Sun Microsystems jumped 53 cents or 6% to $9.75 after it drew a recommendation from Merrill Lynch. Intel tacked on 21 cents or 0.7% to $32.52 and software maker Oracle rose 26 cents or 1.6% to $16.18. Microsoft was marked up 85 cents or 1.4% to $60.65. Networking gear maker Cisco Systems shed 30 cents or 1.8% to $16.76.

AOL Time Warner surged $1.91 or 7.5% to $37.36 as it was disclosed that chairman Stephen Case had recently bought 1m shares on the open market. Honeywell stumbled $1.21 or 3.6% to $32.71 after it lost an asbestos damages court case.

Among Dow components, Alcoa gained 87 cents or 2.6% to $34.42, International Paper added $1.31 or 3.2% to $41.99 and heavy equipment maker Caterpillar climbed $1.07 or 2.3% to $48.50.