The Dow Cracks a Smile

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NEW YORK: After slicing nearly 500 points off the Dow over the past three sessions, Wall Street finally found a reason to smile Friday: Unemployment is back on the rise after hitting 28-year lows this spring. While that may not cheer Mr. and Mrs. America, for the traders it's good news: Higher unemployement means lower wages, and low wages means low inflation, and low inflation means -- you guessed it -- that Fed chairman Alan Greenspan is that much more likely to cut interest rates again when the FOMC meets again in November.

"The slowdown in job creation is one more sign that the U.S economy is cooling off," says TIME business reporter Bernard Baumohl. "But that makes it easier for Greenspan to cut rates, which could provide a lift again down the line." You know things are bad in the global economy when the only good news is that it's getting worse.