Wall Street: Friday close

PRESIDENT Bush called for quick action to bolster the US economy after new figures showed a big jump in the number of Americans out of a job in the wake of the 11 September terror attacks.

Bush said the latest unemployment report was 'not good news for America...The attacks have threatened the livelihood of American workers,' he said in urging Congress to speed up consideration of an economic stimulus package which could pump $100bn (£69bn) into the world's biggest economy.

Markets remained resilient in the face of the new jobs report. The Dow Jones Industrial Average rose 59.64 points or 0.6% to 9,323.54, while the Nasdaq Index edged lower by 0.57 points to 1745.73. For the week, the Dow fell 2.3%, while the Nasdaq surrendered 1.3%.

Unemployment data showed the US economy lost 415,000 non-farm jobs during October, the biggest drop in two decades, and the unemployment rate ramped up to 5.4% from 4.9% the previous month.

The jobs report capped a week of dismal economic news. The latest data showed the economy suffering its worst contraction in more than a decade, consumer confidence plunging to a seven-year low, consumer spending falling at its fastest pace in more than 14 years and manufacturing spiralling into its deepest slump since the 1990-1991 recession.

The Federal Reserve, which meets on Tuesday, is expected to cut interest rates for the tenth time since 3 January in an effort to lift the US economy out of its year-long slump. Economists are split over whether the Fed will cut rates by 0.25% or 0.5% at the meeting.

Analysts said investors appeared to be looking beyond the current downturn in hopes that a rebound sometime next year would restore company profits. 'We're climbing a wall of worry,' said Dan Veru, portfolio manager at investment firm Palisade Capital Management. 'Clearly, we're in a recession, but the outlook gets better as the market looks farther forward.'

The big news outside the jobs report was the announcement by the US Justice Department that it had reached an agreement with Microsoft that, in the words of Attorney-General John Ashcroft, 'will put a stop to Microsoft's unlawful conduct' in dominating computer software. But 18 States party to the lawsuit against Microsoft withheld their approval amid criticism that it fell short of punishing Microsoft and ensuring that alleged abuses of the past did not recur. Microsoft chairman Bill Gates said the settlement 'imposes some very tough rules and restrictions on our business...The settlement is fair and reasonable and in the best interests of consumers and the economy'.

Microsoft shares, up 6.4% on Thursday on word that a settlement was nigh, retreated 49 cents or 0.8% to $61.35. Other techs, which had rallied along with Microsoft, were mixed. Sun Microsystems was higher by 60 cents or 5.5% to $11.44, Cisco Systems gave up 43 cents or 2.4% to $17.23 and Hewlett-Packard was marked down 36 cents or 2% to $16.94.

ExxonMobil fell 70 cents or 1.7% to $39.79 in a weak energy sector. Online retailer Priceline.com added 10 cents or 2.3% to $4.50 after it topped third-quarter forecasts. AOL Time Warner shed 49 cents or 1.5% to $32.15 on cautious comments from investment house Lehman.

Retailers Home Depot, up $1.85 or 4.8% to $40.25, and Wal-Mart, ahead 78 cents or 1.5% to $53.02, were helped by the prospect of falling interest rates. Among Dow components, McDonald's tacked on 58 cents or 2.2% to $26.78, Eastman Kodak fell $1.94 or 7.2% to $24.86, Coca-Cola lost 29 cents or 0.60% to $48.88 and General Electric rose 23 cents or 0.6% to $38.14.