1:00PM New York, 7:00PM Frankfurt – Employment report lifted stocks in the U.S. and market indexes in Europe.

Market indexes in New York trading were lifted at the opening after the employment report and continued to trade at the peak for the day. Dow Jones Industrial Average added 90 points to 14,066, Nasdaq jumped 35 to 2,769, and S&P 500 increased 12 to 1,555.

Nasdaq for the week has increased 2.6%, Dow after crossing a record high this week is up 1.3%, and S&P 500 is up 2% for the week. For the year Nasdaq is up 14.3%, Dow up 13%, and S&P 500 up 9.6%.

U.S. Labor Department released its September employment report and said that 110,000 workers were added to the payroll. August month data was revised from a decline of 4,000 to an increase of 89,000. The reversal for the August month and sharp increase in September month data lifted market indexes.

Employment report lifted stocks in the European trading as well and lowered the U.S. bonds, and dollar firmed against the euro.

Research in Motion (RIMM: chart) reported fiscal 2008 second quarter earnings of 50 cents compared to 25 cents a year ago. The revenue for the company rose 10% on revised revenue and earnings guidance for the year. At mid-day the stock traded at $112.60.

Washington Mutual, (WM: chart) one of the largest mortgage lender, said that the quarter earnings will be affected by a charge of $975 million to cover loan losses and are likely to drop 75%. The company will also take charges for $150 million related to $17 billion portfolio adjustment, $150 million in mortgage securities trading, $110 million losses in mortgage-backed securities that are for sale.

Merrill Lynch & Company (MER: chart) said that it is likely to report loss in the recently finished quarter on the account of losses of $5 billion in mortgage related business. This comes after the Citigroup, Credit Suisse, UBS, and other have declared losses of $11 billion.

Pall Corp (PLL: chart) jumped after reporting a preliminary earnings report. The company estimated fourth quarter sales increase of 8.2% to $646.3 million and earnings before interest and taxes increased 28.4% to $299 million.

Google Inc (GOOG: chart) jumped $14 to $593.01 after Bear Stearns analyst projected higher ad spending and raised target price by the end of the next year to $700. Yahoo jumped 3% to $27.54 after analyst report from Sanford C. Bernstein speculated that the total value of different business at Yahoo is worth $39 per share.

8:00AM New York – Barclays abandons its offer from ABN Amro.

Barclays Plc withdrew its offer of cash and stock worth $84 billion for ABN Amro after only 80% shareholders were tendered.

The bid led by Royal Bank of Scotland from the consortium of three banks is now likely to split the bank in three divisions. The higher bid valued at 70.5 billion euros or $99 billion is not what the management of ABN Amro had preferred.

Barclays said that it is likely to ask for the breakup fee of 200 million euros.

The consortium of three banks led by RBS included Banco Santander Central Hispano of Spain and Fortis of the Netherlands.

6:00AM New York, 6:00PM Tokyo - Casio leads Tokyo down 0.2%. Nikkei 225 up 1.7% for the week. Japan’s foreign exchange reserves hits record US$945 billion

In Tokyo trading Nikkei 225 closed 0.16% or 27.45 or 17,065.04 in the red, while the broader Topix index firmed 1.6%. The index was up1.7% for the week.

Of the Nikkei 225 stocks 92 gained, 119 declined and 14 were unchanged. Softbank Corporation led advancers, rising 5.36% after the Telecommunications Carriers Association revealed the company has gained more subscribers for the fifth straight month than its biggest rivals NTT DoCoMo and KDDI. Energy and Financial stocks gained as well.

Oil prices rose for the first time in five days to $81.44 per barrel after an unexpected decline in U.S. stockpiles. Inpex Holdings gained 2.54%, Nippon Oil rose 0.85%.

Director of petroleum and gas division for the Agency of Natural Resources and Energy Shin Hosaka said today the Ministry of Economy, Trade and Industry will notify Japan’s oil companies of Angola’s tender for blocks scheduled for December. He added that Japan was finding it difficult to source oil from the African market in the wake of competition from China.