Updated from 3:36 p.m. EST

Stocks rallied in the last hour of trading Friday and the major averages to closed higher to end a five-day losing streak.

The Dow Jones Industrial Average gained 118.80 points, or 1.2%, to 9774.24. The Nasdaq was up 36.77 points, or 2.1%, to 1818.88, and the S&P 500 was higher by 16.05 points, or 1.5%, at 1096.22. The indices started the session solidly higher but seesawed throughout the day before closing with solid gains.

Qualcomm ( QCOM) was under pressure, apparently after questions began swirling around a report discussing the company's royalty revenue. Shares of the wireless technology developer hit a 52-week low earlier in the session and were lately traded down 6.7% to $36.50. Reports were circulating that the Center for Financial Research & Analysis is examining whether Qualcomm accepted stock as royalty payments from companies who were short on cash.

Corning ( GLW) was one of the day's big winners. The stock rose 81 cents, or 12.9%, to $7.27 after the company projected a first-quarter loss of 14 cents to 18 cents a share on revenue of $925 million to $950 million. Analysts were forecasting a loss of 17 cents a share on revenue of $932.2 million. The company also said that the timing of a recovery remains uncertain.

WorldCom ( WCOM) cut its forecast for 2002 and set plans to incur a charge of $15 billion to $20 billion, but J.P. Morgan upgraded the telecommunications firm to a buy rating from long-term buy. The firm said the stock has an attractive valuation and that the company has offered realistic guidance. Worldcom's shares rose 67 cents, or 8.9%, to $8.19.

Tyco International ( TYC) said it will cut 1,000 jobs, or 44% of the workforce, at its telecom unit. The company emphasized that the layoffs aren't a direct result of the financial circumstances that have battered the stock of late. Shares of the manufacturing conglomerate traded up 96 cents, or 3.4%, to $29.01.

Cigna ( CI) was rising $1.07, or 1.2%, to $90.75 after the insurance provider posted a fourth-quarter net profit of $1.92 a share, beating the consensus estimate of $1.81. Revenue for the quarter dropped 3% to $4.9 billion. For 2002, the company expects operating income of $7.85 to $8.15 a share.

Shares of beleaguered credit card issuer Providian ( PVN) were rising sharply after the company reached an agreement with federal regulators on a capital improvement plan. Merrill Lynch upgraded the stock to buy from neutral. In addition, Providian posted a fourth-quarter loss of $395.3 million, or $1.39 a share, after delaying its financial results last month. The company said the recession put a stranglehold on its customers, causing extensive loan losses and weaker demand. Shares climbed 75 cents, or 21.7%, to $4.21.

Business software firm Manhattan Associates ( MANH) was enjoying a strong session following its quarterly earnings report, which revealed a rise in profits and revenue from year-ago levels. The company posted a fourth-quarter profit, excluding amortization and a one-time charge due to its exposure to Kmart ( KM). The company's shares were climbing $4.39, or 18%, to $28.80.

The Securities and Exchange Commission gave Elan ( ELN) official notice that it is launching an investigation of the company's accounting records. The Irish drugmaker said it welcomes the opportunity to set the record straight. Elan's shares added 6 cents, or 0.4%, to $13.55.

After the close Thursday, Electronic Data Systems ( EDS) posted fourth-quarter earnings of 81 cents a share, ahead of analysts' expectations of 79 cents. Revenue for the quarter rose 13.5% to $5.91 billion but fell short of the consensus. The company said revenue should come in at the low end of the expected range in the next two quarters but should accelerate in the second half of the year. EDS said it remains comfortable with current earnings forecasts for the first quarter and 2002. The stock fell $1.22, or 2.1%, to $57.78 Friday.

Treasuries were higher, with the 10-year note up 18/32 to 100 2/32, yielding 4.87%.

Overseas, stocks were mixed with London's FTSE 100 up a fraction at 5128 and Germany's Xetra Dax up 0.8% at 4863. Japan's Nikkei 225 added 1.1% to 9860, and Hong Kong's Hang Seng gained 1.1% to close at 10,519.

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