June 10, 1999

Stock and bond markets are sending conflicting signals about state of world's economies; stock traders around world exude confidence, while United States bond market remains fearful; concern is that some yet-unidentified crisis economic crisis looms; traders say market for non-Treasury debt still suffers from fairly severe lack of liquidity, result of unwillingness of large brokerage firms to risk capital in trading such bonds; spread between yields on such bonds and on Treasury securities is widening; part of rise in interest rates reflects fear that inflation may be returning; graphs; drawing (M)

Federal Appeals Court in Manhattan overturns conviction of Autumn Jackson, who went to prison for threatening to tell supermarket tabloid that she was Bill Cosby's out-of-wedlock daughter unless he paid her $40 million; decision raises possibility of new trial for Jackson, who has already spent 14 months in prison and for two associates, Boris Sabas and Jose Medina, whose convictions were also thrown out; experts say that ruling could have broader legal significance by helping to clarify what constitutes acceptable threat and what constitutes blackmail or extortion; court ruled that jury should have been allowed to consider whether Jackson believed that she had rightful claim to money in light of her claim that Cosby was her father; photo (M)

Two years after Wildcat High School in Hunts Point section of Bronx was established for violent or potentially violent students, it has undergone series of feats and hurdles; educators have praised its success in turning around some of city's most troubled students, yet fear that increasing enrollment will undermine school's effectiveness; school, which carries high price tag of about $60,000 per student, is run by Board of Education and Wildcat Services Corp; students and faculty members comment; photo (M)

Design Notebook describes recent four-day International Contemporary Furniture Fair at Jacob K Javits Convention Center, nation's most comprehensive exhibition of contemporary home design; photos (M)

Shag rugs are staging comeback, after being written off as ultimate home-furnishing faux pas; shag has been rescued from paneled rec room and placed prominently in sunken living room of cool, contemporary decor; photos (M)