June 2, 2002

Gretchen Morgenson column says economic rebound in US is threatened by continued depression of broad stock market indexes, which generally begin to rise well before evidence of economic recovery; says that if stocks stay in slump, consumers may rein in their spending, hurting recovery, and that prolonged slump would make it harder and most costly for companies to raise capital they need to expand their operations and increase revenue and profits; suggest that fault lies in good part with steady stream of accounting scandals, corporate chicanery and questionable practices at Wall Street firms, which are undermining investors' trust in nation's capital markets and role they play in helping to generate growth and prosperity; photos (L)

Slow Evacuation From India Americans leaving India after a State Department warning said they had little sense that their lives were in danger. But Pakistani soldiers in Kashmir said they were prepared for an assault by India. PAGE 10 Bishops May Hear Victims The nation's Roman Catholic bishops are weighing whether to allow victims of sexual abuse by priests to speak at the bishops' annual meeting this month. PAGE 18

Profile of and interview with German-born Parisian designer Karl Lagerfeld, 63, who is to achieve lifetime achievement award from Council of Fashion Designers of America at ceremony in New York; Lagerfeld is only leading designer without permanent house or his own label; photos (M)

Jon Pareles column on 'franchising' of rapper Eminem, who has new album and DVD, The Eminem Show, and is about to begin tour; photo (M)

Article on string of embarrassments at InStyle and InStyle Weddings magazines, which published cover shots and articles about celebrity marriages that did not survive until publication dates; photos (M)