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To: 2MAR$ who wrote (77684)	10/15/2002 11:14:28 AM
From: 2MAR$	Respond to of 208838

U.S. stocks make hefty gains as earnings impress (Updates to mid-morning) By Denise Duclaux NEW YORK, Oct 15 (Reuters) - Stocks blazed higher in mid-morning trade on Tuesday, driving major market gauges up as much as 4 percent, as earnings out of companies like financial titan Citigroup Inc. <C.N> took investor enthusiasm up another notch after three straight days of gains. "There's been a lot of pain and a lot of bloodshed, it's got to end at some point," said Phil Orlando, chief investment officer of Value Line Asset Management, which oversees $6 billion. "I mean zero is not an acceptable number in my view." Citigroup rallied 9 percent and lifted sentiment ahead of a rush of quarterly earnings reports this week. The No. 1 U.S. financial services firm notched a 23 percent rise in third-quarter profit as strong retail banking results offset problem loans and sluggish Wall Street revenues. Sentiment is improving on Wall Street after the battered market last week scored its first gain in six weeks and scored its first three-day rise in a month on Monday. Worries linger over the economic rebound, a possible war on Iraq and more attacks after the blasts in Bali, but investors are hoping bad news is already baked into a market that last week hit five-year lows. The technology-loaded Nasdaq Composite Index <.IXIC> soared 51 points, or 4.18 percent, to 1,271. The blue-chip Dow Jones Industrial average <.DJI> surged 273 points, or 3.47 percent, to 8,150. The broad Standard & Poor's 500 <.SPX> rallied 29 points, or 3.54 percent, to 871. U.S government bonds dropped and gold prices fell to a four-week low as investors dumped safe havens in favor of the riskier equity market. Citigroup jumped $2.74 to $33.05, ranking as the most active on the New York Stock Exchange and the biggest percentage gainer on the Dow. Dow member J.P. Morgan Chase & Co. Inc. <JPM.N> scrambled up $1.26, or more than 7 percent, to $18.14. American Express Co. <AXP.N>, another Dow component, jumped $2.34, or more than 7 percent, to $33.44. General Motors Corp. <GM.N> jumped $1.59, or nearly 5 percent, to $34.85. The world's No. 1 auto maker reported a net loss for the third quarter after a $2.2 billion write-down as its stake in the automotive operations of Italy's Fiat SpA <FIA.MI> wiped out its operating profit. But the Dow member posted stronger-than-expected results before the charges and raised its earnings estimates for the year. The third-quarter earnings season heats up this week with about 150 Standard & Poor's 500 companies slated to post their results. Intel Corp. <INTC.O>, the world's No. 1 maker of computer chips, and wireless technology giant Motorola Inc. <MOT.N> are slated to release quarterly results after Tuesday's close. Intel rose $1, or more than 6 percent, to $16.10, while Motorola dipped 3 cents to $10.07. Maytag Corp. <MYG.N>, the third-biggest U.S. home appliance maker, jumped $2.97, or more than 14 percent, to $23.54. The company posted higher third-quarter earnings and helped spark a rise in other home appliance companies. Whirlpool Corp. <WHR.N> rose $3.96, or almost 9 percent, to $48.50. Black & Decker Corp. <BDK.N> rallied $3.12, or more than 7 percent, to $43.90. (With additional reporting by Doris Frankel) (( -- Wall Street Desk, 646-223-6112 -- )) REUTERS