Wall Street: Wednesday close

INVESTORS returned from lunch with an appetite for shares, transforming a triple-digit loss into a triple-digit gain. The rally helped the Dow Jones Industrial Average climb 113.41 points or 1.1% to 10,059.63 to add to Tuesday's 126-point rally.

The Nasdaq Index, which rose 1.9% on Tuesday, erased much of its morning losses, but finished down 10.70 points or 0.6% at 1677.53.

Analysts were unable to explain the change of heart over the lunch table, but the rationale for the rally appeared to be consumer-related. Wal-Mart was among companies snapping back from an early loss, closing the day ahead 97 cents or 1.7% at $56.80. Consumer products giant Procter & Gamble closed up $1.54 or 1.7% at $91.80.

Even beaten-down telecoms enjoyed a late-day bounce. AT&T surged 84 cents or 6.4% to $13.96. SBC jumped $1.59 or 5.1% to $32.65. But WorldCom, which faces concerns for its survival, slumped another 27 cents or 11% to $2.21. It traded at $64 in 1999.

Behind the early sell-off was data suggesting the economy might have taken a breather in April. The Institute of Supply Management Index, widely watched as a barometer for the manufacturing sector, came in at 53.9 in April, from 55.6 in March and much lower than economists had forecast.

Separately, Washington reported that March construction spending fell 0.9% in March, versus the 0.1% expected forecasters. February's number was also revised downward.

The double-take was most sharply felt in the tech sector, which struggled to recover its losses. Cisco Systems slipped 95 cents or 6.5% to $13.70. Software maker Oracle tumbled 59 cents or 6% to $9.45 after one broker questioned whether it could meet sales expectations.

Hewlett-Packard fell 24 cents or 1.4% to $16.86 as investors dismissed its victory in a lawsuit aimed at preventing its merger with Compaq Computer. Compaq shares added 50 cents or 4.9% to $10.65 on signs that the merger will go through shortly.

Sun Microsystems, the software and network server company, plunged $1.21 or 15% to $6.97 as its president and chief operating officer became the latest in a string of top-level executives to leave the company.

Conglomerate Tyco International, which leapt nearly 9% on Tuesday after its chief financial officer reassured investors that it did not face a cash crunch, was up $1.59 or 8.6% to $20.04.

ExxonMobil reversed an early loss to close up 52 cents or 1.3% to $40.69.