Around the World's Markets: New York

US STOCKS rose for a third day as investors, encouraged by higher- than-expected earnings from International Business Machines, piled money into the computer shares that led Monday's rout. The Dow Jones ended up 145.76 points, or 1.4 per cent, to 10,727.18, with IBM contributing 105 points to the advance.

The high-tech Nasdaq index had its most powerful three-day rally since November 1987, soaring 71.94 points, or 2.9 per cent, to 2,561.02, putting its three-day gain at 9.2 per cent.