US stocks end higher

Investors finally found a reason to go back to Wall Street today irresistible prices following five straight days of selling. Stocks posted solid gains, lifting the Dow Jones industrials up more than 100 points.

But analysts do not expect the gains to last given investors’ fears about corporate book-keeping and profitability.

The Dow closed up 118.80, or 1.2%, at 9,744.24, after recovering from an earlier loss of 45.12. The Dow recouped about 40% of its 294.56-point loss from the previous five sessions.

The broader market also finished higher after fluctuating throughout the day. The Nasdaq composite index rose 36.77, or 2.1%, to 1,818.88. The tech-focused index fell Thursday to its lowest close of the year and recorded its first five-session losing streak since the September 11 terror attacks.

The Standard & Poor’s 500 index on Friday advanced 16.05, or 1.5%, to 1,096.22.

The advance was largely attributable to bargain hunting, as the market has fallen since last Friday amid growing scepticism about the way companies keep their books. Wall Street’s concerns were precipitated by the collapse of Enron in December.

Analysts said a practice called short covering also contributed to the market’s climb. Investors who sell stocks short in essence betting that prices are headed lower must buy stocks to cover their positions when the market goes against them.

Tyco, whose accounting has been questioned, rose 1.83 dollars to 29.88 dollars after saying its cash balance is strengthening. In a filing Friday with the Securities and Exchange Commission, Tyco said it expects to have a cash position of 4.07 billion dollars at the end of the current quarter, compared with 1.87 billion dollars at the end of 2001.

Citigroup rose 1.35 dollars to 45.49 dollars after The New York Times reported today that Citigroup had hedged against losing the 1.2 billion dollars it lent to Enron. The report said Citigroup issued 1.4 billion dollars in securities that acted as a safety net in case Enron was unable to repay its loans.

Triquint Semiconductor rose 68 cents to 10.43 dollars after reporting fourth-quarter profits of a penny a share, surpassing Wall Street’s expectations of a 2% loss. Additionally, US Bancorp upgraded its rating on Triquint.

Other tech gainers included Microsoft, up 85 cents at 60.65 dollars, and Texas Instruments, up 75 cents at 30.29 dollars.

While the buying was a welcome change, analysts doubt it would last long given the Enron-related concerns. The Enron debacle alarmed investors, who are questioning the ways that other companies record profits and sales.

Combined with lacklustre fourth-quarter earnings reports, investors have had little reason to buy.

Advancing issues outnumbered decliners nearly 2 to 1 on the New York Stock Exchange. Volume was moderate.

The Russell 2000 index, the barometer of smaller company stocks, rose 8.26, or 1.8%, to 466.66.