Business Brief

U.S. JOBLESS CLAIMS HIT 6-YEAR HIGH

The nation's jobs market sent a fresh cry of distress as the number of newly laid off people unexpectedly hit the highest level in more than six years, a Labor Department report showed Thursday. New applications filed for unemployment benefits rose last week by a seasonally adjusted 7,000 to 455,000, the department said in its weekly report. That was the most since late March 2002, when the job market was struggling mightily to get back on its feet after the 2001 recession.

RETAIL SALES TAKE A BEATING

The outlook for the back-to-school shopping season seemed grim Thursday, as retailers' July sales reports showed an increasing shift toward buying necessities like food and household supplies at discounters and away from discretionary spending on clothing. With the benefits of the government stimulus checks fading and jobless claims at a 6-year high, the big worry is how much shoppers -- squeezed by high gas and food prices -- will retrench in the critical months ahead.

DOW LOSES 225 POINTS

Wall Street tumbled Thursday as further troubles in the financial sector, higher unemployment and lackluster retail sales touched off fresh concerns about the economy. The Dow Jones industrials skidded nearly 225 points, while bond prices shot higher as investors once again sought the safety of government debt. The stock market's pullback erased most of the 370-point gain the Dow logged the prior two sessions and shows the lack of solid conviction behind many of investors' recent bets. The Dow fell to 11,431.43.

OIL BACK OVER $120 A BARREL

Oil prices jumped back above $120 a barrel Thursday, halting a steep three-day slide after Kurdish rebels claimed responsibility for a fire at key Turkish pipeline that supplies Western countries.

Light, sweet crude for September delivery rose $1.44 to settle at $120.02 a barrel on the New York Mercantile Exchange, after prices alternated between positive and negative territory.

BLOCKBUSTER LOSES $44.7M

Blockbuster Inc. suffered another loss in the second quarter ($44.7 million, or 23 cents per share) but the movie-rental chain showed signs of progress by wringing more revenue from its stores while lowering its costs. Heartened by its rising sales, Blockbuster modestly raised its outlook and predicted it would produce a profit of $21 million to $36 million for the entire year. Blockbuster shares shed 31 cents, or nearly 10 percent, to finish Thursday at $2.88.

Photo: Paul Sakuma, AP / A couple walks into a Blockbuster in Palo Alto, Calif., Thursday. The chain is optimistic despite its heavy second-quarter loss. ;