IN BRIEF
WASHINGTON
Initial jobless claims drop
to 457,000 but still elevated
New jobless claims fell last week for the third time in four weeks but remain elevated. The decline is a sign that the economy added jobs in July, still not enough to lower the nation's high unemployment rate.
The Labor Department said Thursday that first-time claims for unemployment insurance dropped by 11,000 to a seasonally adjusted 457,000.
Claims have fluctuated this month because of temporary seasonal factors. General Motors and other manufacturers skipped their traditional summer shutdowns, which led to fewer layoffs and unemployment claims. But the impact of that distortion has largely faded from the data, a Labor Department analyst said.
The four-week average of claims, which smooths fluctuations, dropped to 452,500, the lowest level since May.
That suggests layoffs may be easing. And the four-week average is slightly below its level in June, which indicates that private employers likely added about the same number of jobs in July as it did last month. The Labor Department will issue its July employment report next week.
NEW YORK
Big Oil posts fatter profits
on higher prices for fuel
The major oil companies continue to climb back from the recession, with higher fuel prices driving up earnings.
After setting record profits in 2008, the oil industry tanked last year as the global economic downturn induced a dramatic drop in oil and natural gas prices. On Thursday, Exxon Mobil Corp. said it earned $7.56 billion in the second quarter, its best result since the last three months of 2008. Royal Dutch Shell Group posted a 15 percent gain in net income. A day earlier, ConocoPhillips said net income nearly tripled in the April-June period. Chevron Corp. reports its quarterly results on to day.
The jump in profits comes as oil companies wait out a ban on deepwater drilling in the Gulf of Mexico.
DETROIT
UAW head: GM will file paperwork in August for IPO
General Motors Co. will file paperwork in mid-August to start the process of selling stock to the public, the head of the United Auto Workers union said Thursday.
President Bob King said GM would file the paperwork, called a registration statement, along with its second-quarter earnings.
King made the announcement in a statement in which he was touting the union's cooperation in the turnaround of the U.S. auto industry.
GM confirmed that the earnings would be released in mid-August.
However, General Motors spokeswoman Renee Rashid-Merem would not comment on when the public stock offering paperwork would be filed with the U.S. Securities and Exchange Commission.
WASHINGTON
Citigroup paying $75 million
to settle up on civil charges
Banking titan Citigroup Inc. is paying $75 million to settle civil charges that it misled investors about its potential losses from subprime mortgages as the housing bust hit in 2007.
The Securities and Exchange Commission announced the settlement with Citigroup on Thursday. It said the company repeatedly made misleading statements in calls with analysts and regulatory filings about the extent of its holdings tied to high-risk mortgages.
The bank had said the exposure was $13 billion or less. The SEC said it exceeded $50 billion.
CHICAGO
Weak revenue, Venezuela hit Colgate's quarterly profits
Colgate-Palmolive Co.'s shares sank Thursday when the company posted revenue below expectations and told investors that Venezuela's currency devaluation would drag down its full-year results more than expected.
It's the second straight quarter where news about Venezuela has hurt the consumer products maker.
Colgate also recorded a hefty charge in its first quarter because of its business in Venezuela, which devalued its currency then and moved the Bolivar to a two-tier exchange structure.
NEW YORK
Motorola quarterly earnings climb; revenue view stabilizes
Motorola Inc. on Thursday reported a sharply higher profit for the second quarter and stabilized its long revenue decline as its strategy of focusing on smart phones like the Droid bore fruit.
Co-CEO Greg Brown said he expects the company to post a revenue increase for the third quarter, which would be the first such increase in three years.
The Schaumburg, Ill., company reported net income of $162 million, or 7 cents per share in the April-June quarter. That's up from $26 million, or 1 cent per share, a year ago.
TODAY | LAST WEEK
30-year 4.54 | 4.56
15-year 4.00 | 4.03
MORTGAGE RATESHIT LOW
NEW YORK — Mortgage rates are the most affordable in decades for those who can qualify for a loan.
For many, the opportunity to buy a home or refinance at this time is lost because of the tough economy and tight credit standards.
But those who have secure jobs, superior credit and strong finances could do even better than the 4.54 average rate that Freddie Mac reported Thursday, according to a variety of experts.
The latest rate is the lowest for a 30-year fixed loan since Freddie began tracking rates in 1971. It also marks the fifth time in six weeks that the mortgage company has reported hitting a new average low.
THE ASSOCIATED PRESS
