NEW YORK, Feb. 20 (UPI) -- New York shares made a roaring comeback Wednesday, buoyed by positive news from blue-chips that enticed bargain-hunters back into the game.
The blue-chip Dow Jones industrial average soared 196.03 points, or 2.01 percent, to close at 9,941.17, while the tech-heavy Nasdaq composite index rose 24.98 points, or 1.43 percent, to 1,775.59.
The broader New York Stock Exchange composite index gained 7.06 points to 569.14, while the Standard & Poor's 500 index rose 14.64 points to 1,097.98. The American Stock Exchange composite index increased by 2.85 points to close at 840.08, while the Wilshire 5000 gained 133.15 to end at 10,252.25.
Big Board volume was at an estimated 1.42 billion shares, while Nasdaq was at 1.91 billion shares. Advancers led decliners 1,899 to 1,218 on the NYSE, while gainers also beat decliners 1,975 to 1,528 on Nasdaq.
Investors were encouraged by Honeywell International Corp.'s decision Wednesday to appoint a new chairman, David Cote, who has a reputation for being a cost-cutter, which pushed up share prices across the board.
Shares of Walt Disney Co. also got a lift from a court ruling loosening restrictions about cable and broadcast ownership, which buoyed blue-chips.
Such bright spots offset negative news from AOL Time Warner Co., which was downgraded from buy to market perform by brokerage house Lehman Brothers Wednesday, pushing down the media conglomerate's stock prices in morning trade.
News from the Labor Department earlier in the day that inflation remained stable in the United States also provided some comfort. The agency reported that the Consumer Price Index rose 0.2 percent in January, marking an increase in CPI for the first time in four months.
Consumer prices rose 1.1 percent from the previous year, compared to a 3.7 percent hike in January 2001.
Meanwhile, U.S. Treasuries drifted lower, as the price on the 10-year bond fell 5/32 to 99 28/32, while the yield rose to 4.89 percent from 4.87 percent Tuesday.
In Europe, stock prices were mixed. The London International Stock Exchange's blue-chip FTSE-100 index dropped 68.40 points, or 1.34 percent, to 5,024.10, but the German DAX index rose 16.19 points, or 0.34 percent, to 4,780.24. The French CAC-40 index, meanwhile, fell 17.37 points, or 0.41 percent, to 4,238.99.
In Asia, most stocks ended lower Wednesday taking their cue from the poor performance of Wall Street Tuesday, when the Dow Jones Industrial Average fell 1.6 percent on concerns about companies' accounting problems. Thailand was the only exchange escaping the selling.
In Tokyo, the Nikkei 225 Stock Average ended down 0.1 percent at 9834.13 with the market now awaiting more details of the government's anti-deflation package to emerge.
Banking shares were little changed, with Mizuho Holdings and Mitsubishi Tokyo Financial Group both ending flat, while UFJ Holdings was down 1.1 percent. Selling was seen on technology heavyweights Matsushita Electric Industrial, Sony and Fujitsu, as the sector reacted to the U.S. Nasdaq's 3 percent decline.
The Korea Composite Stock Price Index closed down 0.69 percent at 776.89, with the news conference by U.S. President George W. Bush and South Korean leader Kim Dae-jung offering little trading direction. Hynix extended losses for a fifth day, falling 2 percent as the likelihood of a collapse in the talks with U.S. Micron Technology Inc increases.
Taiwan shares mainly reacted to Wall Street, with the Weighted Price Index fell 2.89 percent at 5692.18. Among those stocks actively traded, chipmaker Winbond Electronics Corp fell 3.7 percent.
In Hong Kong, the Hang Seng Index fell 0.8 percent to 10749.06 with HSBC and China Mobile together accounting for most of the fall in the index. Investors are worrying about upcoming local corporate earnings. China Mobile fell 3.4 percent amid concerns about weak growth in subscriber numbers, while HSBC fell 1.1 percent on fears it will make a sizable provision for its exposure to Argentina when it releases its 2001 earnings in early March.
Singapore shares continued to loose ground, with the Straits Times Index losing 0.8 percent at 1729.35. Banking stocks were among the main losers, after DBS Group reported higher than expected provisions for bad loans prompting investors to speculate that OCBC and UOB, which have yet to announce their results, will do the same. Singapore Telecommunications continued to hover around its all-time low on concerns over the company's on-going expansion ambitions.
In the Philippines, profit-taking took hold of the market, on the day the exchange's afternoon trading resume for the first time in more than two decades. The 30-company Philippine Stock Exchange Index closed down 1.1 percent at 1453.17, with activity on blue chips mixed. Metropolitan Bank fell 0.5 percent and SM Prime fell 1.4 percent, but Philippine Long Distance Telephone rose 2 percent.
In Kuala Lumpur, profit taking also took its toll on the main index, which closed down 1 percent at 722.79. Telekom Malaysia fell 2.1 percent, following news the government will ask fixed-line carriers to reduce prices for international calls and to raise prices for local calls within a 25-kilometer radius. Technology Resources Industries lost 2.5 percent on news its largest shareholder, Tajudin Ramli, may be questioned by police in an unrelated investigation of cargo operations of the national airline.
In Jakarta, the JSX Composite Index ended down 0.5 percent at 458.458 with telecoms leading the way. Telekomunikasi Indonesia lost 3.3 percent and Indonesian Satellite Corp. lost 2.4 percent. Local retailer Matahari Putra Prima rose 8.5 percent on speculation Lippo Group will sell part of its stake in the company.
In India, the BSE 30 index closed down 39.4 points at 3,558.21, with software stocks weighting on the market.
The Stock Exchange of Thailand index rose 1.65 percent at 376.31 with property stocks leading the way higher after several local brokerage recommendations on the sector. Golden Land Property Development added 2.9 percent after reporting a net profit above market expectation. National carrier Thai International added 9.5 percent on buying interest from foreign players.
