November 4, 2001	Sunday	Shaba’an 17, 1422

NEW YORK, Nov 3: US blue-chip stocks rose on Friday as investors took in stride news of the worst job losses in more than 20 years in October, while US Treasuries fell and the dollar was little changed against major currencies.

The grim report from the Labour Department knocked US oil prices below $20 a barrel as more signs of economic malaise dimmed the outlook for energy demand.

US nonfarm payrolls plummeted by 415,000 in October, sending the unemployment rate shooting up to 5.4 per cent, the highest in nearly five years.

But Wall Street investors were able to look past the bleak data, which had been expected, and push stocks higher.

The market is saying we are looking through the valley of bad earnings and bad economic numbers, said Tony Rosenthal, portfolio manager at TimesSquare Capital Management, which oversees $2 billion.

People are saying ‘The bad news is upon us, the Fed has cut interest rates aggressively and pumped money into the system. We’re betting things will get better.

Blue-chip shares like home improvement retailer Home Depot Inc. and diversified manufacturer Minnesota Mining & Manufacturing Co. rose.

Microsoft Corp. initially added to Thursday’s gain after the US Justice Department announced its widely expected antitrust settlement with the software giant. But Microsoft shares, which had rallied 6 per cent on Thursday, lost 44 cents to $61.40.

The Dow Jones industrial average rose 59.64 points, or 0.64 per cent, to end at 9,323.54.

The broader Standard & Poor’s 500 Index was up 3.10 points, or 0.29 per cent, at 1,087.20. But the technology-laced Nasdaq Composite Index fell 0.57 of a point, or 0.03 per cent, to 1,745.73, after rising as high as 1,759.65.

Oil futures prices fell to the lowest point since July 1999. December crude on the New York Mercantile Exchange fell 70 cents to $19.69 a barrel before recovering to end at $20.18, down 21 cents on the day.

NYMEX crude futures have now sustained losses of some $10 a barrel, or nearly 34 per cent, since the immediate aftermath of the Sept. 11, attacks on the United States.

In currency markets, traders initially marked down the dollar, but it quickly reversed its losses amid the perception that aggressive fiscal and monetary stimulus would help the United States recover most rapidly from a global economic downturn.

The US willingness and ability to pursue pro-growth policies is rewarding the dollar, said Marc Chandler, currency strategist at HSBC in New York.

The euro was unchanged against the dollar, trading at 90.23 cents, having falling from its session peak of 90.74 cents.

The dollar could not muster strength against the yen, falling 0.22 per cent to 121.69 yen.

In the bond market, long US Treasuries tumbled after the weak US employment data boosted prospects of steep Federal Reserve interest-rate cuts, prompting investors to take profits on a massive, two-day 30-year bond rally and buy short maturities, most responsive to rate cuts.

Prospects improved for another interest-rate cut by the Federal Reserve to bolster the economy, which many analysts believe has slipped into recession.

A Friday Reuters poll showed a majority of 24 US primary bond dealers believe the central bank will cut rates by an aggressive half point on Tuesday.

European shares ended mixed. The pan-European FTSE Eurotop 300 was up 0.39 per cent on the session, while the narrower DJ Euro Stoxx 50 was down 0.16 per cent.

The late-closing Dax index was Europe’s laggard, shedding 0.79 per cent, partly on fears that the anthrax scare that has gripped the United States has reached Germany.

In London, the blue-chip FTSE-100 Index rose 58.3 points, or 1.15 per cent, to finish at 5,129.5.

Tokyo’s benchmark Nikkei average managed to end in positive territory for the first time in six sessions. The Nikkei 225 index gained 36.50 points or 0.35 per cent to close at 10,383.78. Since last Friday, the Nikkei had fallen 411.38 points.—Reuters