Business news with words added+department+earnings. 4 news.

WALL Street paused from its big rally yesterday, with stocks closing narrowly mixed after the government's November labor report showed tepid job growth as well as a pickup in inflation. The major indexes ended the week higher, with the Dow Jones industrials having gained nearly 900 points over nine trading days. The Labor Department reported 94,000 jobs were added to payrolls in November and that the unemployment rate held steady at 4.7 percent. Thomson/IFR analysts had set a median projection of 100,000 new jobs. The report also showed that average hourly earnings increased 0.5 percent in November, compared with forecasts for a more-modest 0.3 percent. The report at least temporarily chilled a rally that has left the Dow only 538 points, or 3.8 percent, below the record close it reached on October 9. "I'd call it an employment letdown," said Jack A. Ablin, chief investment officer at Harris Private Bank. "A little air came out of the party balloon."

WAL-MART Stores Inc will reduce its employees in China by more than 100 as part of a restructuring program in its Global Procurement Division after pressure mounted on the firm due to slower profit growth. The world's biggest retailer plans to cut the payroll in its four sourcing offices in Shenzhen, Shanghai, Putian and Dongguan, according to Huang Jianling, a communications official from Wal-Mart China. The lost jobs in China account for half of its global reduction. "We have found some department functions overlap," said Huang via telephone with Shanghai Daily. "The consolidation will help to reduce redundancy and improve efficiency." Huang added that some new positions will be created, but did not elaborate. The layoffs in China, announced last weekend, came after the retailer posted a less-than-anticipated profit for the second quarter. Wal-Mart also lowered its earnings forecast after cutting prices on thousands of stationary items. "The

US stocks rose for a fifth straight week, the longest stretch of gains since May, after minutes from the Federal Reserve and better-than-expected retail sales bolstered hopes that the economy will keep expanding. Wal-Mart Stores Inc, the world's largest retailer, climbed to a two-month high after boosting its third-quarter profit forecast. Yum! Brands Inc, owner of the Pizza Hut and Taco Bell restaurant chains, jumped the most since September 2005 on earnings that topped analysts' estimates. Exxon Mobil Corp, the biggest oil company, led a gauge of energy shares to a record after crude prices rose to an all-time high. Minutes from the Fed's September 18 policy meeting showed central bankers avoided language that might have suggested the economy would fall into a recession. The Commerce Department said retail sales added 0.6 percent last month, from the 0.2 percent gain predicted by analysts in a Bloomberg News survey. "The consumer is a staying force, earnings growth is

US stocks have risen for a fourth straight week, sending the Standard & Poor's 500 Index to a record, after employment growth eased concern that mortgage losses will cause a recession. Fannie Mae and Morgan Stanley led banks, brokerages and other financial firms in the S&P 500 to their biggest rally since March 2003. Homebuilders surged the most since November 2000 after Citi Investment Research said their shares are cheap, Bloomberg News reported. The Labor Department said American payrolls increased by 110,000 jobs in September and the prior month's decrease of 4,000 was revised to a gain of 89,000. That quelled concern that home-loan losses are dragging down the economy. "Stocks look very good to me," said John Lynch, chief market analyst at Evergreen Investments LLC, which manages US$280 billion in Charlotte, North Carolina. "The jobs report suggests continued economic growth, which should translate to continued profit growth and good market performance." The S&P 500 rose two percent last week to 1,557.59. The index has rebounded 11 percent since August 15, erasing US$1 trillion of losses. The Dow Jones Industrial Average ended the five-day period up 1.2 percent at 14,066.01 after closing at a record on October 1. The Nasdaq Composite Index added 2.9 percent to 2,780.32, the highest since February 2001. The yield on 10-year US Treasury notes rose about 0.05 percentage point to 4.64 percent. Traders pared bets that the Federal Reserve will lower interest rates this month because of less concern the housing slump will weigh on the broader economy. The central bank reduced its benchmark lending rate by half a percentage point to 4.75 percent on September 18. Financial shares in the S&P 500 rose 4.5 percent. "We expect to return to a normal earnings environment in the fourth quarter," Citigroup Inc Chief Executive Officer Charles Prince said. His company is the largest US bank. Former Federal Reserve Chairman Alan Greenspan also said the credit slump may be ending. Fannie Mae, the largest provider of money for US home loans, rose 11 percent to US$67.30. Morgan Stanley, the second-largest US broker by market value, climbed 9.4 percent to US$68.90. Goldman Sachs Group Inc, Morgan Stanley's bigger rival, added 5.4 percent to US$228.50. The S&P Supercomposite Homebuilding Index gained 12 percent, the most in almost seven years. Citi analyst Stephen Kim said at the start of last week that the shares of builders such