"Everyone is starting to change their (trading) models to figure out what stage of the recession we're in," Anthony Conroy, head trader at BNY ConvergEx, told The Wall Street Journal.

On Thursday, the U.S. Labor Department reported the Consumer Price Index, was flat after falling 0.1 percent in August.

By the close Thursday, the Dow Jones industrial average had gained 4.68 percent to 8,979.26, up 401.35 points. The Standard and Poor's 500 gained 4.25 percent -- 38.59 points -- to 946.43. The Nasdaq composite index gained 89.38 points, 5.49 percent, to 1,717.71.

On the New York Stock Exchange, 2,195 stocks advanced and 954 declined on a volume of 8.16 billion shares traded.

The 10-year U.S. Treasury bond fell 5/32 to yield 3.969 percent.

The euro fell to $1.3463, compared to $1.3469 Wednesday. Against the Japanese yen, the dollar rose to 101.65 yen, up from 101.41 yen.

In Tokyo, the Nikkei average fell 11.41 percent, down 1,089.02 points, to 8,458.45.

The FTSE 100 index in London breached the psychologically important 4,000-point barrier, losing 230.50 points to 3,849.10, down 5.65 percent.

New York to probe AIG perks ALBANY, N.Y., Oct. 16 (UPI) -- New York State Attorney General Andrew Cuomo said he has put American International Group Inc. executives on notice that company perks must stop.

AIG sponsored a luxurious trip to the St. Regis resort in Monarch Beach, Calif., a week after the U.S. government took over 79.9 percent of the company and granted it an $80 billion line of credit, the Daily News reported Thursday.

More recently, four AIG executives spent $86,000 hunting partridges at a retreat in Britain, the newspaper said.

Cuomo's said his message to the company was simple: "The party's over. No more hunting trips, no more resorts."

New York has opened an investigation of possible fraud.

"We believe these expenditures and payments, made in the absence of fair consideration, violated New York law," Cuomo wrote in a letter to AIG telling executives to "cease and desist" from lavish spending on perks.

"On Oct. 10, we issued a directive ending all activities that are not absolutely essential to the conduct of our business," AIG spokesman Peter Tulupman told the Daily News.

Washington considers economic stimulus WASHINGTON, Oct. 16 (UPI) -- Congressional leaders in Washington on both side of the aisle have indicated a new economic stimulus package should be enacted soon.

The shape of a new package is undetermined, but preliminary discussions show signs of partisan divisions, the Los Angeles Times reported Thursday.

"Clearly, a significant initiative is required to promote job creation and economic growth," House Speaker Nancy Pelosi, D-Calif., wrote to Democratic members this week.

House Republican leader John Boehner, R-Ohio, said he agreed "wholeheartedly that Congress should take additional measures to get our economy back on track."

"And we should not wait until January," he said.

Senate Democratic leader Harry Reid, D-Nev., has proposed a $150 billion package that includes spending on infrastructure, extended unemployment benefits, energy assistance for low-income families and tax breaks for businesses.

But, Boehner said constituents weren't looking for "pork-barrel spending masquerading as stimulus."

White House spokeswoman Dana Perino said U.S. President George Bush would consider a stimulus bill, but objected to extending unemployment benefits and funding infrastructure projects, the Times reported.

Electronics consumers sizing up options NEW YORK, Oct. 16 (UPI) -- Technology-hungry U.S. consumers are adjusting to the weak economy with plans to cut back on big-ticket item purchases, some industry analysts said.

"TVs are going to be the hardest hit," Richard Doherty, an analyst at the Envisioneering Group told USA Today. "If it can't fit under your arm, you'll hold off."

"Sales aren't what they one were," said Marty Singer, director of Web operations for New York retailer J&R Music World. However, he noted TVs priced under $1,000 are still moving out of stores, the newspaper reported Thursday.

Sales of other high tech gadgets could also be subject to consumer hesitation. "Apple is vulnerable, due to its higher price points, but they're in great shape with iPods," Roger Kay of Endpoint Technologies said.

Others expect consumers to choose to watch videos on line to avoid paying for high-definition television. "Why buy expensive DVDs when you can get it for free on line?" said James McQuivey of Forrester Research.

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