New water pump and thermostat recently and the car seems to run hotter with the gauge making 20-degree jumps up and down.
The temp at normal operating range seems to be around 220, going up in heavy traffic.
I mentioned having the 180-degree installed and the dealer did not recommend it.

Any ideas on what is going on?

My 94 SE goes to just below 200 and stays there.
My 93 SSEI goes to above 200 and fluctuates between 205 and 230.

Replace lost coolent after pump replacment?
Thermostat installed upside down?
an old hose could partially collapse after pump change due to cavitation- check all hoses while ideling hot-
Could be a bum stat-
wide temp changes usally indicat a low coolent level, faulty stat, air in system, worst case head gaskets, ect.... Sometimes something as simple as the radiater cap not letting off pressure can affect boiling points and cause problems.
Fan operation
I have seen undiluted antifreeze cause problems, but not normally... hope this helps....