Jobless claims drop for third straight week
Fewer Americans applied for jobless aid last week, the third straight drop in a sign that the job market remains healthy despite a recent slowdown in hiring.
Weekly applications for unemployment aid dipped 1,000 to a seasonally adjusted 267,000, the Labor Department said Thursday. The four-week average, a less volatile measure, fell to 276,750.
Applications are a proxy for layoffs, so the decline in jobless aid suggests that companies are confident enough to hold onto their workers. When layoffs are low, hiring is usually steady.
Employers added 160,000 jobs in April, a slowdown from prior monthly job growth that averaged more than 200,000. Economists say that the government jobs report being released Friday will show job growth in May at roughly the same pace as in April.
U.S. businesses added 173,000 jobs last month, lifted by strong gains in services industries, according to a private survey by payroll processor ADP. Applications have been below 300,000, a historically low level, for 65 weeks, the longest such streak since 1973.
CBL declares dividend equal to 11 percent yield
CBL & Associates Properties Inc. on Thursday declared a quarterly cash dividend for its common stock of 26.5 cents per share, or the equivalent of an 11 percent forward yield at the company's closing price of $9.65 per share.
The second quarter dividend is payable on July 15 to shareholders of record as of June 30.
The board also declared a quarterly cash dividend of 46 cents per depositary share for the quarter ending June 30 for the company's 7.375 percent Series D Cumulative Redeemable Preferred Stock. The dividend, which equates to an annual dividend payment of $1.84 per depositary share, is payable on June 30 to shareholders of record as of June 15.
In addition, the board declared a quarterly cash dividend of 41.4 cents per depositary share for the quarter ending June 30 for the company's 6.625 percent Series E Cumulative Redeemable Preferred Stock. The dividend, which equates to an annual dividend payment of $1.65 per depositary share, is payable on June 30 to shareholders of record as of June 15.
Mortgage rates increase to 3.66 percent this week
Long-term U.S. mortgage rates rose this week for a third straight week yet remained near three-year lows as the home buying season progresses.
Mortgage buyer Freddie Mac said Thursday the average 30-year fixed-rate mortgage increased to 3.66 percent from 3.64 percent last week. That is well below its level a year ago of 3.87 percent.
The average rate on 15-year fixed-rate mortgages rose to 2.92 percent from 2.89 percent.
U.S. government bond prices have declined, raising long-term bond yields, in the past few weeks since the Federal Reserve indicated that an interest-rate increase is likely this month if the economy keeps improving.
Long-term bond yields tend to influence mortgage rates.
Bond prices began rising, and yields declined, this week, however. The yield on the 10-year Treasury note dipped to 1.84 percent Wednesday from 1.87 percent a week earlier. It fell to 1.82 percent Thursday morning.
Tennessee outpaces nation for home starts
Tennessee Gov. Bill Haslam has declared June home ownership month as the Volunteer State shows stronger home construction growth than the U.S. as a whole.
Statewide, construction was up 17 percent in the first quarter compared to a year ago, compared with an 8 percent versus gain in the region and 12 percent national growth pace.
"Every time you see a home under construction, that's an investment being made in the local community. Dollars and jobs are being brought to town," said Ralph M. Perrey, executive director of the Tennessee Housing Development Agency. "Residential construction is both a gauge of economic growth and one of its most important drivers."
In addition, foreclosure rates in Tennessee are at their lowest level since the year 2000 and home prices have finally risen above their pre-recession prices in 2007 in most markets, Perrey said.
Gap says sales slide 6 percent
Gap says sales at established stores fell 6 percent in May. That was better than the 7 percent decline forecast by Thomson Reuters.
Sales in stores open at least a year is a key metric of a retailer's health.
By division, same-store sales fell 3 percent at Gap stores, 11 percent at Banana Republic and 7 percent at Old Navy.
The San Francisco-based retailer said Thursday the entire month was challenging, but performance improved toward the Memorial Day weekend.
For the four weeks ended May 30, Gap said total sales fell 5 percent to $1.18 billion.