Wall Street shares - Higher in volatile early trade

Share prices were higher in early trade after changing direction several times in uncertain price action, as investors reviewed a new set of technology sector research notes and a defense industry takeover offer, dealers said.

At 10.24 am, the DJIA was up 37.64 points at 9,872.32, and the Nasdaq composite up 4.82 at 172.06. The S&P 500 level was up 2.42 at 1,083.37.

Dealers said stocks opened lower on all major indices, but quickly began a pattern of alternating between small losses and minor gains.

They said that the market remained higher after the first half hour of trade, but could be pushed lower again later in the session.

The market has had great difficulty sustaining rallies in recent weeks due to a growing sense of distrust of corporations and the accounting profession in the wake of the Enron bankruptcy scandal.

The technology sector was benefiting from a new JP Morgan upgrade for Xilinx, up $1.00 at 35.01, and Altera, up 28 cents at $20.10.

Dell was up 18 cents at $23.93 after receiving a bullish note from Merrill Lynch, which urged investors to view recent declines in the stock price as a buying opportunity.

Computer Associates had still not opened for trade on the NYSE, which said the stock was halted pending an announcement. Earlier, Computer Associates denied it had tapped credit lines to make payments on its commercial paper.

Cisco was down 60 cents at $14.52 after UBS Warburg reduced its 2002 and 2003 earnings per share estimates for the company, citing weakness in the enterprise market.

JP Morgan Chase was down $1.44 at $27.72 after the Wall Street Journal reported today that the Federal Reserve Bank of New York is examining JP Morgan Chase & Co's accounting in commodity-related trades with Enron Corp, citing internal central bank documents.

The trades being reviewed appear to relate to Mahonia Ltd, an offshore entity set up by the old Chase Manhattan Bank through which it did substantial business with Enron.

TRW was up $9.65, or 24.2%, at $49.43 after Northrop Grumman's offer to buy the company for $47 per share. TRW said in a press release it may be interested in a higher bid.

Northrop Grumman was down $11.04, or 9.37%, at $106.76, after the news.

Bristol-Myers was up 39 cents at $45.70 after news yesterday that US antitrust enforcers in Washington have said they will not oppose a bid by takeover artist Carl Icahn to buy a stake of ImClone Systems, which is battling Bristol-Myers for control of their joint Erbitux cancer treatment.

Imclone was down 21 cents at $16.56.