Biz bits

Jobless tally still too high to signal rebound

WASHINGTON --- Fewer people are claiming unemployment benefits -- but still too many to signal that the economy is close to gaining jobs.

First-time claims for jobless benefits dropped last week to a seasonally adjusted 502,000, the Labor Department said Thursday. That's the fewest claims since the week ending Jan. 3, and below economists' estimates.

Claims would have to fall to the high 400s to indicate the economy could soon produce even a slight gain in jobs, estimates Abiel Reinhart, an economist at JPMorgan Chase. That level of claims could be reached by January, he said.

Intel ends antitrust war with settlement

SAN FRANCISCO --- Intel Corp. will pay $1.25 billion to make peace with Advanced Micro Devices Inc., as the companies whose microprocessors run nearly all personal computers finally found common ground in a bitter and colorful dispute that caused international antitrust trouble for Intel.

The settlement sent AMD stock soaring and ended a 4-year-old lawsuit in which AMD accused Intel of abusing its dominance of the chip market to keep a lid on AMD's share. Intel has about 80 percent of the microprocessor market; AMD has about 20 percent.

Bargain hunters might stock up, spend less

NEW YORK --- Shoppers' focus on staples such as socks and underwear is driving murky holiday outlooks at Wal-Mart and Kohl's, even as both posted higher third-quarter earnings.

Both signaled they plan aggressive discounting to hang on to customers and drive sales this holiday season.

Wal-Mart Stores' price-cutting campaign is bringing more shoppers in the door. But shoppers are spending less when they get there because the goods are priced lower.

Meanwhile, department store operator Nordstrom Inc. announced late Thursday that its profit rose 17 percent in its fiscal third quarter, and it raised its 2009 profit outlook. Luxury stores such as Nordstrom saw solid sales gains last month from the sharp falloff a year ago.

Dollar breaks fall that taxed new economies

NEW YORK --- The dollar edged up, breaking a decline that's caused developing countries to worry that the sinking U.S. currency is making their exports expensive and threatening their fledgling economic recoveries.

A lower dollar -- and China's yuan, which is effectively pegged to the dollar -- makes other countries' goods relatively more expensive. China has recently signaled that it might be ready to let its currency rise.

American manufacturers contend that China's yuan is undervalued by 20 to 40 percent against the dollar, giving the country a huge trade advantage. On the other hand, the yuan's low value allows U.S. consumers and major retailers, such as Wal-Mart, to buy Chinese imports cheaply.