Daily News from New York, New York • 15

POW JONES 9,907.26 NASDAQ 22.79 1,911.24 SCkR SOO 8.00 1,122.20 SIM FOR THE WEEK 25.86 67.18 DDDQ07 By JUDITH SCHOOLMAN DAILY NEWS BUSINESS WRITER Unemployment unexpectedly dipped, manufacturing levels improved and consumer sentiment jumped last month, all continuing signs the recession may be close to an end. The nation's unemployment rate fell to 5.6 in Jan- ss 5.0 4.5 jjtSL. 4.0 FMAMJJAS0NDJ SOURCE: Department of Labor uary from 5.8 in December, the first drop since last May, the Labor Department said. While companies continued to trim staff, the rate of losses declined, with 89,000 job cuts in January, following 130,000 job cuts a month earlier. "After losing hundreds of thousands of jobs each month for the past four months, losing only 89,000 jobs in January is actually good news even if it doesn't feel that great," said Bill Cheney, chief economist at John Hancock Financial Services.

"We're still on the road to recovery, just not hitting on all cylinders yet." At the same time, an industry report showed manufacturing improved in January for the third month in a row. The Institute for Supply Management's business activity index rose to 49.9, the highest since the manufacturing slump began a year and a half ago, thanks to an increase in orders and reduction of inventories. A reading above 50 shows growth in manufacturing, while below 50 means a decline. "It is encouraging that the rate of decline has slowed to its low- has continued a decline and consumer confidence has tumbled. But for the past few week the picture has brightened.

"Despite some stones in the road, the path to U.S. economic recovery looks increasingly clear," said Salomon Smith Barney economist Robert Di-Clemente. On Wall Street, investors reversed course after two winning sessions as concerns about corporate accounting dragged down some big name stocks. The Dow dropped 12.74 to 9,907.26 and the Nasdaq lost 22.79 to 1,911.24. Ad firm TMP Worldwide, owner of online employment site Monster.com, plunged $4.36 to $38.21 after it became the latest company to come under Enronlike scrutiny after a report alleged the company "glossed over" its finances to make its profits look better.

TMP called for a correction, calling the Forbes magazine article "inaccurate and irresponsible." Among other decliners, Microsoft fell $1.05 to $62.66 and Citigroup shed 91 cents to $46.49. Wr- 3-'' est measurable level," said Norb-ert Ore, chairman of ISM, formerly the National Association of Purchasing Management. In a sign the slim improvement in the economy could result in stronger consumer activity, the University of Michigan's closely-watched consumer confidence index surged to 93 in January from 88.8 in December. This was its fourth consecutive monthly increase, putting it at its highest level in a year. These were just the latest reports that indicated the economy was indeed turning the corner.

After entering recession in March, unemployment has grown, manufacturing activity AP Taders on NYSE floor are hopeful that improved economic numbers will result hi increased trading. taftraCi seeks ffeafeiral GDaiiDtiDiigtt, slashes jobs do some type of emergency action to keep them afloat," said Wendell Cox, another Reform Council member. Amtrak's northeast corridor, which includes the new high speed Acela train serving New York, is the railroad's most profitable region. Ridership in the corridor grew 14 last year to 13.5 million riders, the railroad said. perts said they would likely affect cash-poor overnight trains in the Midwest and West.

"By nature, cross-country trains are not profitable," said Amtrak spokeswoman Karen Dunn. "We have been given a conflicting mission by Congress to run the trains that make sense politically and to turn a corporate profit." Never having turned a profit in its 30 year history, Amtrak received $521 million from Congress in its 2001 fiscal year, which ended in September. Last summer, Amtrak took out a $300 million mortgage on New -York's Penn Station, its most valuable asset, to keep trains running. Next Thursday, the Amtrak Re form Council is expected to recommend to Congress that Amtrak be split into three subsidiaries: a train operator, a station and track operator and an oversight group responsible for performance and funding. Under the plan, the oversight subsidiary could introduce competition by putting the operation of particular routes up for bid.

"Congress is going to have to 2) 57th: Another loss for celebrity lawyer By NANCY DMON DAILY NEWS BUSINESS WRITER Amtrak has warned it will discontinue much cross-country, train service in October if Congress doesn't come to the rescue with $1.2 billion. The federally subsidized passenger railroad also said it will cut 1,000 jobs, about 4 of its staff and halt many station and equipment upgrades. This austerity move is a dramatic reversal for Amtrak, which has repeatedly defended itself against charges it was hemorrhaging money and would miss an October deadline for self-sufficiency. Now in motion is a high-stakes game. Congress must either cough up the money more than twice what it paid Amtrak in 2001 or begin dismantling Amtrak's monopoly.

"I can't say I'm surprised by the news," said Nancy Connery, a member of the federal watchdog group the Amtrak Reform Council. "We' knew they were in a much worse state than they were letting on publicly." Amtrak officials did not specify which long-haul routes were earmarked for the cuts, but ex By ERIC HERMAN DAILY NEWS BUSINESS WRITER Chalk up another loss for David Boies. The legendary lawyer, whose victory over In a suit filed last year, Solow sought $20 million, claiming J.P Morgan breached its lease by not restoring the office space to its "original condition" when it moved out, and by failing to remove asbestos properly. Solow hired an army of DAILY NEWS Microsoft wilted on appeal and who represented Al Gore in his losing bid to win the Florida presidential recount, has just lost a lawsuit involving one of Manhattan's priciest office build high-priced legal talent to wage the fight, including Boies and lawyers from three other firms. That wasn't enough to "Solow substantially interfered with Morgan's ability to complete the project," Tolub wrote.

The ruling joins the list of recent Boies losses, including the Gore case, which he lost in the U.S. Supreme Court, and litigation involving Napster. "He's clearly a very capable and highly respected lawyer. Since he was supported by a large team of partners and associates from his firm and three other firms, it's very gratifying to win," said Richard Seltzer of Kaye Scholer, who represented J.R Morgan. Boies was not available for comment.

But one of Solows other lawyers. Warren Estis, said the owner would appeal. "We were rather shocked, to say the least, with the findings that the court made," Estis said. -lXj- with Nancy Dillon ings: 9 W. 57th St.

Boies represented building owner Sheldon Solow in a case against J.P. Morgan Chase, a former tenant in the building. Prior to its merger with Chase Manhattan Bank, bring Solow victory. Judge Walter Tolub of New York Supreme court threw out the claim, finding Solow had taken steps to prevent the bank from restoring the space to its original condition. For example, the judge found, Solow made it hard for J.P.

Morgan private banking division occu pied seven floors in the building before mov- the bank to use the building's freight eleva- tegoutil998:.