WALL STREET: Closes above 13,000

 NEW YORK  _ Wall Street reversed early losses to close
higher Tuesday, as investors monitored the movements of record high
oil prices but still laid bets that the economy and companies are
in recovery mode.
    Crude oil climbed to a record near $123 a barrel on the New York
Mercantile Exchange as traders, who have nearly doubled the price
of oil over the past year, reacted to the weakening U.S. dollar,
supply threats, and a note from Goldman Sachs predicting that oil
could reach $200 a barrel. High oil prices threaten to crimp
consumers' discretionary spending.
    But oil price sticker-shock waned and as investors looked past
wider-than-expected quarterly losses at Swiss bank UBS,
government-sponsored mortgage company Fannie Mae, and homebuilder
D.R. Horton Inc.
    ``I think overall, the strength in stocks right now is on fairly
firm footing,'' said JPMorgan equities analyst Thomas J. Lee. ``In
some ways, first-quarter earnings are yesterday's news.''
    In recent weeks, stronger-than-expected results from companies
outside the battered financial and housing sectors helped the stock
market rebound to levels not seen since early January. Economic
data has been better than expected _ particularly Friday's
employment report and Monday's data on the service sector _ and
meanwhile, the credit markets keep showing increased appetite for
the risk that investors had avoided for months.
    According to preliminary calculations, the Dow Jones industrial
average rose 51.29, or 0.40 percent, to 13,020.80.
    Broader stock indicators also rebounded. The Standard & Poor's
500 index rose 10.77, or 0.77 percent, to 1,418.26, and the Nasdaq
composite index rose 19.19, or 0.78 percent, to 2,483.31.
    Bond prices pared earlier gains. The yield on the benchmark
10-year Treasury note, which moves opposite its price, was at 3.90
percent, down from 3.87 percent late Monday.
    Ryan Detrick, senior technical strategist at Schaeffer's
Investment Research, said it is a good sign that stock traders
started buying back in again when the S&P 500 briefly dipped below
the technically significant 1,400 mark.
    ``We had some negative news this morning, and we've shaken it
off. It's encouraging,'' Detrick said.
    Huge quarterly losses from three major players in the financial
and homebuilding industries initially sparked some stock selling
Tuesday, but those dips were soon met by bargain-hunters, who are
betting that those sectors are a good buy right now given their low
prices.
    Fannie Mae reported a larger-than-expected first-quarter loss of
$2.2 billion, and said it plans to lower its dividend and raise $6
billion in additional capital. But it also estimated its market
share increased to about 50 percent of the new single-family
mortgage related securities issued. Fannie Mae shares rebounded to
rise $2.52, or 8.9 percent, to $30.81.
    Homebuilder D.R. Horton reported a quarterly loss of $1.3
billion and halved its dividend to 7.5 cents a share. The
homebuilder's shares rose 88 cents, or 5.1 percent, to $16.85.
    UBS reported a loss of nearly $11 billion and said it is
reducing its work force by about 7 percent. UBS shares dipped 54
cents to $33.77.
    Meanwhile, Wachovia Corp. said it is nearly doubling its
previously reported loss for the first quarter to $708 million
after reviewing its portfolio of bank-owned life insurance.
Wachovia's stock rose 30 cents to $30.08.
    After the closing bell, Walt Disney Co. posted a higher
second-quarter profit on stronger-than-expected theme park
attendance. Shares closed up 44 cents at $33.73, and moved higher
in electronic trading.
    Cisco Systems Inc. said third-quarter profit declined, but the
networking gear maker's adjusted earnings and revenue topped Wall
Street projections. Shares rose 5 cents to close at $26.33, then
tacked on another 2 percent in after-hours trading.
    Oil settled up $1.87 at $121.84 on the New York Mercantile
Exchange. Gold climbed, while the dollar fell against most other
major global currencies.
    The Russell 2000 index of smaller companies rose 5.44, or 0.75
percent, to 729.79.
    Advancing issues outnumbered decliners by about 8 to 7 on the
New York Stock Exchange, where volume amounted to a light 1.23
billion shares.
    Overseas, Japan's stock market was closed for a holiday. In
Europe, Britain's FTSE index finished flat, Germany's DAX index
fell 0.50 percent, and France's CAC-40 fell 0.44 percent.