Wall Street report: Tuesday close

EVEN ragged earnings reports can lift a market if expectations have been lowered enough. That was the lesson from Wall Street as a string of major companies reported that their quarterly results, however patchy, came in better than investors and analysts had been led to expect.

The Dow Jones Industrial Average, down 97 points on Monday, jumped 207.65 points or 2.1% to 10,301.32. The Nasdaq Index, which started the day down 10% on the year, surged 63.01 points or 3.5% to 1816.79. The gains represented the third biggest for both markets so far this year.

The rally, which appeared more a triumph of managing expectations downward rather than a wholesale rebound in company profitability, followed a week of mixed news on the economy which cast doubts on a snapback in earnings.

Investors have been hoping that Federal Reserve chairman Alan Greenspan, who is due to deliver his opinion on the state of the economy to Congress today, will clear up the confusion. New data was encouraging with industrial production strengthening at the fastest rate since May 2000 and March retail inflation coming in at 0.3%, less than expected. The figures would be unlikely to spur the Fed to raise official interest rates when it meets next month.

Techs led the rally as a handful of companies beat drastically lowered expectations. Chip equipment maker Novellus leapt $3.06 or 6% to $53.46 and semiconductor maker Texas Instruments vaulted $1.66 or 5.2% to $33.79.

The results sparked a broad rally in the sector with Microsoft up $2.12 or 3.8% to $57.81, Cisco Systems ahead 57 cents or 3.8% to $15.58 and Hewlett Packard stronger by 72 cents or 4% to $18.60. Intel closed up $1.40 or 5% to $29.51 in regular trading and changed hands at $30.95 in extended hours after it cheered investors and analysts in their first look at the chipmaker's quarterly report.

General Motors, the biggest car maker, topped profit forecasts and saw its shares zoom $2.95 or 4.8% to $64.05. Coca-Cola rose $1.49 or 2.8% to $53.88 as it exceeded lowered expectations.

General Electric, punished over the past few days since its quarterly numbers disappointed investors, regained $1.25 or 3.9% to $33.10. The conglomerate said it would cut 7,000 jobs from its capital financing subsidiary. IBM, which topped $126 in January, clawed back 85 cents or 1% to $86.20.

Hard-hit telecoms wre suddenly back in vogue with WorldCom soaring $1.16 or 23% to $6.23 and AT&T jumping $1.34 or 10% to $14.89.

Among Dow components, Alcoa rose 87 cents or 2.4% to $37.58, Boeing climbed $1.05 or 2.2% to $48.70 and Citigroup firmed $2.19 or 4.8% to $48.11.