JIM LEHRER: The U.S. economy today gave the clearest sign yet it's moving into recession. The Commerce Department reported economic activity fell in the third quarter for the first time since 2001.
The gross domestic product was down 0.3 percent from July through September. Consumer spending was a driving force behind that downturn; it fell more than 3 percent, the most in 28 years.
The GDP number was actually better than expected, but the president's top economic adviser, Edward Lazear, said there's no question the economy has gotten "significantly weaker".
EDWARD LAZEAR, chair, Council of Economic Advisers: We believe that we're going to see a few tough months ahead, but we are trying to take the steps that will help the next administration start off on the right foot. And we think that it is realistic to think that sometime early in the term of the next president we can start to see solid growth again.
JIM LEHRER: Lazear also defended the federal rescue plan against criticism of how some banks are using the funds. So far, the Treasury has committed $160 billion to buy stakes in banks to get them lending again.
But the Washington Post and others reported more than half the money will go to pay dividends over the next three years. Lazear said the government is watching closely to make sure there are not abuses.
Wall Street mostly shook off the day's economic news and focused instead on worldwide cuts in interest rates. The Dow Jones Industrial Average gained more than 189 points to close above 9,180. The Nasdaq rose 41 points to close at 1,698.
Stock markets in Asia also scored big gains. Indexes across Europe were up, too, but not by much.
American Express announced today it's cutting 7,000 jobs in the face of falling earnings; that's about 10 percent of the credit card and financial service firm's global workforce.
But oil giant ExxonMobil posted another record profit of nearly $15 billion in the third quarter. The price of oil peaked during that period before falling sharply.
The governors of six states appealed today for immediate action to help automakers. They warned of unmanageable disaster without it. The warnings came from the governors of Delaware, Kentucky, Michigan, New York, Ohio, and South Dakota. They wrote to Treasury Secretary Paulson and Federal Reserve Chairman Bernanke.
The government of Japan announced an economic stimulus package of $275 billion today. The prime minister said it's essential to boost the world's second-largest economy.
TARA ASO, prime minister, Japan (through translator): The current state of the economy is like being hit by a tempest that comes once in 100 years. The economy was hit by a tempest that started from the U.S. The Japanese government will tackle this with all its efforts, and we hope to gain the understanding of all the Japanese people.
JIM LEHRER: Under the plan, all Japanese families receive cash payments, and small businesses get loans and tax credits.
The U.S. presidential candidates focused on the economic news with just five days to go. Republican John McCain campaigned across Ohio. He cited ExxonMobil's record profits, and he criticized Democrat Barack Obama for backing tax breaks for oil companies.
Obama traveled from Florida to Virginia to Missouri. He said bad news about the economy would only continue under McCain. We'll have more on the campaign later in the program.
Rebels in Congo today demanded direct talks with the government. A fragile cease-fire held as U.N. and African leaders tried to prevent another all-out war. The rebels were poised outside the eastern city of Goma, where U.N. peacekeepers patrolled.
We have a report from Jonathan Miller of Independent Television News, who's just outside Goma tonight.
JONATHAN MILLER: Today we drove four hours from Kigali, the Rwandan capital, west towards the Congolese frontier. And all the way, we were going against the flow. There were eight agency convoys heading the other way.
When we made it down to the border, we were met by people who'd just come from the other side and they said, "Look, it's not safe to cross." There's a widespread fear tonight of the looting and the mayhem that took place last night under cover of darkness.
Goma tonight is a city under siege. It's quiet, but edgy, and someone I spoke to that just left the city tonight said it had the sense of a place about to blow.
I'm standing right on the border now. And I've been in touch with a Congolese government soldier who is just about 50 kilometers south of Goma, and he says the belief of the Congolese military is that the forces of Laurent Nkunda, the Tutsi warlord who has led this rebellion, have now completely surrounded and infiltrated Goma.
Laurent Nkunda has today said that he will enter the city unless he can get a guarantee from U.N. peacekeepers inside Goma that they will ensure a cease-fire and security.
Now, he says that he wants to talk, but the likelihood is the government of Congo will not want to do this. It won't want to negotiate down the barrel of a gun.
All this means government forces still in the city are very, very jumpy. They still control the airport. But once Nkunda enters the city, they'll have nowhere left to run, and certainly they won't be running across into Rwanda, which has been again accused today by Congo of backing the rebels.
Now, while all this has been going on, a humanitarian disaster has been unfolding, with 200,000 extra displaced people to add to more than a million already on the move because of fighting.
JIM LEHRER: The European Commission said today it's sending $5 million in aid for the refugees in Congo. And the U.N. asked for reinforcements to support its 17,000 troops there, its largest peacekeeping mission in the world.
Taliban fighters attacked a government building in the capital of Afghanistan today, killing at least five people. They shot their way into the Ministry of Culture in Kabul. One of them blew himself up.
In addition to the dead, more than 20 people were wounded. Afghan President Karzai said the attack was meant to undermine efforts to hold talks with the Taliban.
The city of Philadelphia today celebrated its first professional sports championship in a quarter-century. The Philadelphia Phillies won the World Series last night, 4-3, over Tampa Bay.
Afterward, thousands of fans poured into the streets. Most of the celebration was peaceful, but police did arrest 76 people.
