NEW YORK - BUYERS returned to the stock market after two days of heavy losses on Friday, mindful of a worse-than-expected employment report but attracted by stocks' lower prices.

The Labor Department said the nation's employers cut 240,000 jobs in October, hurtling the US unemployment rate to a 14-year high of 6.5 per cent. The market had expected employers to cut 200,000 jobs and for the unemployment rate to rise 6.3 per cent.

Meanwhile, Ford reported dismal third-quarter results and announced plans to cut more than 2,000 additional white-collar jobs.

General Motors is also expected to report results Friday.

Although the day's news was worse than expected, investors seemed to be attracted by stock prices beaten down the past two sessions.

Investors have been optimistic before, snapping up bargain stocks only to cash in the profits when jitters return. Barack Obama's election to the White House was preceded by a big rally, and then followed by a two-day loss of about 10 per cent in the major indexes.

The Dow Jones industrial average gained 89.92, or 1.03 per cent, to 8,785.71.

The broader Standard & Poor's 500 index added 8.40, or 0.93 per cent, to 913.28, and the Nasdaq composite index rose 16.80, or 1.04 per cent, to 1,625.50. -- AP