DATE=05/08/02

TYPE=CORRESPONDENT REPORT

TITLE= WALL STREET SURGES-UPDATE (S)

NUMBER=2-289594

BYLINE=NICK SIMEONE

DATELINE=WASHINGTON

CONTENT=

VOICED AT:

INTRO: Unexpectedly good news from computer giant Cisco helped fuel an across the board rally on Wall Street Wednesday, giving stocks their best day in eight months. Correspondent Nick Simeone reports the question for investors is whether the American economy is now recovering from recession faster than analysts expected.

TEXT: The Dow Jones industrials surged, closing up more than 300 points. The technology-heavy NASDAQ gained nearly eight percent, up more than 122 points, giving the markets their best day since last September.

The rally was set off by better than expected news from California-based Cisco Systems, the largest maker of equipment that directs traffic on the Internet. The San Jose company reported profit for the third quarter of last year three times higher than expectations -- reversing steep losses from a year earlier.

Gary Thayer, the chief economist at St. Louis-based A-G Edwards thinks Wednesday's rally is a sign that the market is finally turning around.

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We do expect further gains going forward. Productivity numbers were very good this week and of course the news out of Cisco was very good so I think investors are looking at the glass now as half full rather than half empty as they were.

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The Dow ended trading Wednesday at just under 10-thousand, 142. (SIGNED)

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