FINANCIAL & BUSINESS NEWS

Last Update on September 02, 2010 13:04 EDT

WALL STREET

NEW YORK (AP) -- Stocks have edged higher after reports on housing, manufacturing and jobs indicated the economy continues to grow slowly.

Today's moves in the market have been somewhat muted, ahead of the government's monthly report on employment.

Traders often limit big moves before the jobs data because it is considered so vital to determining the health of the economy.

The monthly report is likely to provide further evidence that the jobs market remains weak. The Labor Department's monthly data is expected to indicate employers are still not hiring workers in large numbers. Economists polled by Thomson Reuters predict the unemployment rate inched up to 9.6 percent last month from 9.5 percent in July as private employers hired just 41,000 workers last month.

JOBLESS CLAIMS

WASHINGTON (AP) -- A new report indicates companies are no longer engaging in so many mass layoffs.

The Labor Department says new applications for unemployment benefits declined for a second straight week after rising in the previous three. New claims for unemployment aid fell last week by 6,000 to a seasonally adjusted 472,000. The four-week average of claims, a less-volatile measure, fell by 2,500 to 485,500, its first decrease after four straight increases.

Even with the declines, claims are still at much higher levels than they would be in a healthy economy. When economic output is growing rapidly and employers are hiring, claims generally drop below 400,000.

RETAIL SALES

NEW YORK (AP) -- American shoppers took advantage of deep discounts and tax-free holidays last month. They opened their wallets a little more for back-to-school spending compared with last year. And that gave some retailers better-than-expected gains for August.

The results provided a sliver of hope for the recovery amid plenty of downbeat news, from slumping home prices and high joblessness. That set up dire expectations for the back-to-school shopping season. Still, the retailers' gains mask underlying weakness in consumer spending as they're being compared with declines a year ago and worries still abound about the critical holiday season.

The International Council of Shopping Center's index of 31 major retailers was up 3.2 percent in August, better than expected.

PENDING HOME SALES

WASHINGTON (AP) -- The number of buyers who signed contracts to purchase previously occupied homes increased in July. But they remained well below last year's levels, a sign that demand for housing remains weak.

The National Association of Realtors' seasonally adjusted index rose 5.2 percent from a month earlier to a reading of 79.4.

A reading of 100 indicates the average level of sales activity in 2001, when the index started.

When the credits expired in April, the index sank. June's reading of 75.5 was the lowest on record.

Even with the July increase, the latest reading was 19 percent below the same month last year and home sales are at the lowest level in more than a decade.

BURGER KING-BUYOUT

CHICAGO (AP) -- Burger King Holdings Inc., the No. 2 hamburger chain, says it is selling itself to little-known private equity firm 3G Capital. The deal is valued at nearly $3.3 billion.

Burger King's shares soared to an 18-month high on the news.

The $24-per-share tender offer comes after a day of speculation about the deal that sent shares up more than 15 percent. The offer is a nearly 46 percent premium over the company's stock price before rumors of a buyout began circulating.

Under the terms of the deal with 3G, Burger King's Chairman and CEO John Chidsey will become co-chairman of the board. 3G Managing Partner Alex Behring will be the other co-chairman.

Burger King, with its 12,100 locations around the world, lags its far larger competitor McDonald's. It has struggled to keep up with its rival during the economy's roller coaster of the past two years.

NATIONAL HEADLINES

White House defends Obama's 'mainstream' religion

Chicago researcher IDs nation's 1st female cop

Wyo. troopers examine human ashes in traffic stop

Agencies find no link between rash, newest Pampers

US Def Sec: Afghans should lead corruption fight

BUSINESS NEWS

Stocks slightly higher

NEW YORK (AP) -- Stocks have edged higher after reports on housing, manufacturing and jobs indicated the economy continues to grow slowly.

CONSUMER INFO

SCIENCE/TECH NEWS

IN THE NEWS: APPLE SEEKS TO CONQUER TV -- AGAIN

SAN FRANCISCO (AP) -- It has already changed the way people listen to music and done much to change how people use their mobile phones.

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BENTON BEARDS

BENTON, Mo. (AP) -- It will be a close shave -- and the men of Benton, Missouri, can't wait.