Wall Street report: Friday close

AMERICANS are tipping a strong rebound in the world's biggest economy, helping push shares slightly higher in the second last day of trading of 2,001. The Dow Jones Industrial Average rose 5.68 points or 10,136.99, 1% higher than where it started the week. The Nasdaq Index gained 10.84 points or 0.55% to 1,987.26, still down 20% on the year and off 50% in the past two calendar years.

A slew of economic statistics pointed to an upswing in psychology among Americans, an important factor in an economy reliant for two-thirds of its activity on consumer spending. The Conference Board, the New York-based research organisation, said that its consumer confidence index showed its biggest gain since 1998 in the latest survey period. The Board said that the index rose to 93.7 from 84.9 the previous month in its first gain since June. Separately, Washington reported that weekly claims for unemployment benefits came it at 392,000, down from the peak of 535,000 in the weeks following the 11 September terror attacks. Demand for housing remained strong, while durable goods orders fell back 4.8% in November after October's 12.5% surge.

'We've probably bottomed in this market and this economy, and 2002 should be pretty good,' said Benjamin Pace, managing director at Deutsche Bank Private Banking.

Economists have been worried that the crush of job redundancies, estimated at one million this year, would weigh on consumer confidence and drive the US deeper into the recession which began officially in March. But demand for housing has held up well and while the holiday shopping season has been subdued, a majority of economists have been forecasting recovery in the New Year.

A reminder of the effect the slow-down is having on corporate America came when Cablevision, the TV delivery company which also owns the New York Knicks basketball and New York Rangers ice hockey teams, said it would cut 600 jobs or 4% of its workforce. Cablevision shares finished ahead $1.04 or 2.2% to $47.78. Software maker Oracle, which had closed the day fractionally higher at $14.06, said that it would reduce its payroll by 800 or 2%.

Internet retailers had another strong day predicated on strong holiday sales. Yahoo!, the subject of an upgrade from Merrill Lynch, added 53 cents or 3% to $18.30. Amazon.com firmed 30 cents or 2.8% to $10.90 and eBay leapt $1.82 or 2.8% to $67.99. Twin tech titans Microsoft and Intel closed mixed after the tech sector had led the market higher on Thursday. Microsoft sported a minor gain to $67.87. Intel shed 43 cents or 1.3% to $32.24.

Among Dow components, American Express surged $1.05 or 3% to $36.05, AT&T rose 21 cents or 1.2% to $18.18, Citigroup strengthened 45 cents or 0.9% to $51.19 and General Motors moved up 95 cents or 2% to $48.92.