Weekly applications for unemployment benefits rise

The number of people seeking U.S. unemployment benefits increased last week after falling sharply two weeks ago. Despite the rise, the level of applications remains near pre-recession levels, a sign that hiring will likely remain healthy.

Weekly unemployment benefit applications rose 12,000 to a seasonally adjusted 293,000, the Labor Department said Thursday. Yet the four-week average, a less volatile measure, fell for the second straight week to 298,500.

Two weeks ago, applications had plummeted to 281,000, near a 14-year low first reached in July. Over the past year, the four-week average for applications has fallen 7.1 percent. They climbed above 650,000 during the recession in 2009.

U.S. durable goods orders fall 18.2 percent in August

Orders for long-lasting manufactured goods slumped in August as demand for commercial aircraft descended from record highs, but investment plans by businesses posted promising gains.

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Durable goods orders fell 18.2 percent in August after a 22.5 percent jump in July, the Commerce Department reported Thursday. Both the big increase and the big drop were records. They reflected sharp swings in demand for commercial aircraft, an extremely volatile category that can skew overall results. Airplane orders fell 74.3 percent in August.

More importantly, however, a key category that serves as a proxy for business spending plans rose 0.6 percent.

The figure offers further evidence that manufacturing is a key source of strength for the economy this year. Economists expect businesses to boost spending as they expand and modernize their operations.

Average 30-year mortgage eases to rate of 4.20 percent

Average long-term U.S. mortgage rates declined slightly this week, after marking their largest one-week gain of the year the previous week.

Mortgage company Freddie Mac said Thursday that the nationwide average for a 30-year loan eased to 4.20 percent from 4.23 percent last week. The average for a 15-year mortgage, a popular choice for people who are refinancing, slipped to 3.36 percent from 3.37 percent.

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At 4.20 percent, the rate on a 30-year mortgage is down from 4.53 percent at the start of the year. Rates have fallen even though the Federal Reserve has been trimming its monthly bond purchases, which are intended to keep borrowing rates low.

Valeant pitches potential eye drug, research focus

Valeant Pharmaceuticals is drawing attention to a potential glaucoma treatment and its focus on product development, as the Canadian drugmaker continues to build its case to investors for a takeover of Botox-maker Allergan.

Irvine, California-based Allergan Inc. has rejected several acquisition bids from Valeant, the latest amounting to about $53 billion.

— From news services


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