Daily News from New York, New York • 36

NASDAQ DOW JONES 113.47 10,126.94 SaP 500 17.61 1,183.50 UDUIL UJLuu ore stodlss I (ht: st- 1,980 1.895 1,638.80 1,810 1.640 i By JUDfTH SCHOOLMAN DAHY NEWS BUSINESS WRITER Investors scooped up bargain-priced stocks yesterday as a flurry of reports pointed to a continuing economic slowdown and raised hopes of another interest rate cut. Investors appeared convinced the worst would soon be over for economy-ravaged companies, experts said. "We had a major disconnect between market numbers and economic numbers," said Lynn Reaser, senior economist at Bank of America. economic numbers were very weak, yet the market looked beyond this news and is viewing 62.48 1,961.43 YESTERDAY 1,961.43 62.48 1.5 overall growth rate for this year, which would keep the country out of a recession. "The Fed must keep cutting interest rates at a rapid pace and oil prices must fall, which they haven't," Malpass said.

All three, speaking at an economics forum at the Council on Foreign Relations in Manhattan, said continued interest-rate cuts are essential. Roach predicted the Fed which has already reduced rates 1.5 percentage points this year will have to slash another 2 points, with Lipsky and Malpass suggesting that 1.25 is more likely. "They'll cut in May and again in June," Roach said. "The big question is whether that'll be enough to jump-start an econo- J1 A '1 WALL 9 Yesterday's spate of figures showed the economy is slowing, but with little hint of inflation. The Commerce Department said retail sales fell unexpectedly by 0.2 last month as business slowed at car dealers, building-materials stores and gas stations.

At the same time, major retailers said sales at stores open at least a year a key gauge of a retailer's business strength rose a less-than -expected 1.7. Several retailers, including Wal-Mart and Sears, cut first-quarter profit forecasts because of the slowing economy and unusually cool weather last month, which hurt sales. Adding to the mix, consumers' confidence in the economy fell more than expected last month to the lowest reading in more than seven years, according to the University of Michigan's widely watched monthly report. And the number of Americans seeking first-time unemployment benefits hit a five-year high last week, the Labor Department said. All this was tempered by the producer price index, a primary inflation gauge, which edged lower last month.

"Today's numbers, including the resumption in the fall of consumer confidence, are a clear call for the Fed to remain aggressive," said Kathleen Stephansen, a fixed-income strategist at Credit Suisse First Boston. Rate cuts rated better conditions six months down the road." Among the latest signs of the slowdown, Internet equipment maker Cisco Systems said it will trim its workforce by 5,000, or 1 1. It rose 58 cents to 1 7.98 far below its 52-week high of $77. But the Nasdaq composite index tacked on more than 3, or 62.48 points, to 1,961.43, resulting in its largest weekly gain in 10 months. The markets are closed today for Good Friday.

Among the big gainers, Microsoft rose $2.14 to $62.18, a two-month high. GE, which said its profits rose 16, gained $1.43 to $44.70. Both companies contributed to the Dow Jones industrial average's charge higher. The blue chip index rose 113.47 to 10,126.94. Times Sq.

4 1 1 1 2 AP a must my that's been laboring under a lot of excess." Many economists, as well as Fed chief Alan Greenspan, believe economic growth will resume by the second half of the year. JBut Roach predicted the fourth quarter won't have any growth over the same period last year. Malpass was more optimistic, predicting 2 economic expansion. "We have an excess-capacity problem in America we have to work off," Roach said. "We have just seen the mother of all financial bubbles pop.

It's going to be very tough to turn this kind of environment around by tinkering with the lending rate." lucci, a spokeswoman for the agency, declined'to comment. The lawsuit seeks $100 million in damages from Durst and the agency and an order barring condemnation. The suit says the value of Triline's property has already fallen because of speculation the agency will condemn, the sites. Triline owns properties at 105, 107 and 109 W. 42nd as well as 1 1 1 1 Sixth Ave.

A pair of two-story buildings occupy the land, generating $2. 1 million in annual rent for Great Neck, L.I.-based Triline, the suit says. "The Times Square area has so dramatically improved that the condemnation of the Trilhie parcels cannot be justified by any conceivable public purpose," the suit adds. site owner con state-Durst 'plot! By DAVID ANDELMAN DAILY NEWS BUSINESS WRITER A "painful process of adjustment" will mean big white-collar layoffs in coming months, according to one leading Wall Street economist, though others said prospects aren't quite so bleak. Stephen Roach, chief economist at Morgan Stanley, said the U.S.

is "in the very early stages of labor cuts" that will have to eliminate "white-collar bloat." But two of his counterparts, John Lipsky of J.R Morgan Chase and David Malpass of Bear Stearns, disagreed with Roach's gloomy scenario. Productivity is helping a lot of companies through these hard times, Lipsky said, predicting a By DAVID GL0VIN BLOOMBERG The owner of a valuable strip of Times Square has accused the Empire State Development Corp. of conspiring with the Durst Organization to condemn the land so Durst can build a 50-story office tower. Triline Trading, owner of four parcels at Sixth Ave. and W.

42nd St. near Bryant Park, charges in a lawsuit that the state's economic development agency plans to move soon to condemn the property so Durst, which owns adjacent sites, can develop its own project. The suit claims condemnation would only benefit Durst, which would be free to buy the parcels at a discount and erect a $1 billion-plus building. damn Ej 1 3ni 4ipt r4 According to the complaint, Durst has demanded that Triline sell for an "unconscionably low" price and threatened to per suade the agency to condemn the flF A I property if Triline EkbffL refuses. Durst is so confident the agency will use its power to con demn, the suit claims, that it's begun marketing the prospective tower, to be known as 1 Bryant Park, to tenants.

"If the condemnation of the Triline parcels is allowed to proceed, the damage to Triline will be irreparable," the suit says. Morty Mate, a spokesman for Durst, run by mega-developer Douglas Durst, and Maura Gal- yr." Mi i 1 JAMES KBVOM DA1UT NEWS at 105109 W. 42nd St. yes over this valuable strip. it'' rt-rir 1 mi 1 I Peaceful scene terday belied the legal turmoil.