Jobless claims fall to 3 1/2-year low
WASHINGTON, May 6 (UPI) -- New claims for state unemployment benefits during the week ended May 1 fell to their lowest level in 3 1/2 years, the U.S. Labor Department said Thursday.
The agency said first-time claims for jobless benefits dropped by 25,000 to 315,000 last week, the fewest since October 2000.
Most economists on Wall Street had expected claims to decline by 3,000 during the week.
The number of people continuing to collect state jobless benefits declined to 2.94 million in the week that ended April 24, the lowest since June 2001. The statistics are reported with a one-week lag to initial claims.
The report showed the four-week moving average of initial jobless claims, a less-volatile measure, declined to 343,250 from 347,000 a week earlier.
The insured unemployment rate, which tends to move with the jobless rate, slipped to 2.3 percent -- its lowest level since July 2001 and down from 2.4 percent a week ago.
The report also showed 35 states and territories reported a decline in new claims, while 18 reported increases.
U.S. stocks continue downward trend
NEW YORK, May 6 (UPI) -- U.S. stocks continued their downward trend Thursday as wary investors overlooked rosy reports on jobs and productivity.
The Dow Jones industrials closed down 69.69 points, a drop of 0.68 percent, at 10,241.26. Nasdaq was down 19.52, or 1 percent, at 1,937.74, and Standard & Poor's fell 7.57, or 1.13 percent, at 1,113.96. The dollar was stronger and bond prices slipped.
Overseas, Japan's benchmark stock index, the Nikkei stock average of 225 issues, fell for a fourth straight trading session, declining 190.45 points, or 1.6 percent, to close at 11,571.34. London's FTSE-100 share index was down 0.5 percent at 4545.80, despite strength in the oil sector.
The Labor Department said initial jobless claims declined by a larger-than-expected 25,000 to a seasonally adjusted level of 315,000 in the week that ended May 1, their lowest level in three years, and non-farm business productivity grew at a seasonally adjusted annual rate of 3.5 percent from January through March.
Retirement leads CEO departures
NEW YORK, May 6 (UPI) -- Retirement was the leading reason for 62 chief executive changes in U.S. companies announced in April, a business report released Thursday shows.
The report by Challenger, Gray & Christmas Inc. said 22 of the CEO departures, or 35 percent, were attributed to retirement. The outplacement firm which has tracked chief executive turnover predicted the trend would continue through all levels within corporations over the next two decades.
The 62 changes in April were down 14 percent from 72 in March, yet remained significantly higher than the 50 in January and 51 in February.
Beyond the 22 CEOs who retired, another 16 companies gave no indication of the reason for their top executive's departure. Eleven resigned while six "stepped down."
The Challenger report also found that more than one third of CEOs did not have an immediate successor, named an interim CEO, or selected a CEO from outside the organization.
"It seems that fewer company executives are being groomed or have been prepared to take over the top spot on a permanent basis," said the firm's own chief executive officer John A. Challenger. "This is indicative of a business world that is increasingly about free agency."
Transportation activity increases
WASHINGTON, May 6 (UPI) -- Transportation activity increased in February for the fifth time in six months, said a report released Thursday by the U.S. Department of Transportation.
The department said the Transportation Services Index (TSI), rose 1.4 percent in February to 120.4, the second-highest level in the 14-year period covered by the index. On a year-over-year basis, the index rose 5.1 percent.
The February rise in the TSI index was led by a 1.6 percent increase in the passenger transportation index.
After revisions, January's TSI fell 1.5 percent from an initial estimate of a 0.8 percent increase.
The TSI is a measure of the month-to-month changes in the output of services provided by the for-hire transportation industries, including railroad, air, truck and inland waterways transportation, pipeline transportation and local transit.
The DOT began issuing the TSI earlier this year. Economists don't expect the monthly data to have much of an impact on financial markets because it is released on a two-month lag. However, the DOT is working to speed up release dates as the index gets going.
Food Lion to open Bloom
SALISBURY, N.C., May 6 (UPI) -- Grocery chain Food Lion LLC Thursday announced plans to open five pilot stores to test a new store concept, format and brand name.
The pilot stores, all scheduled to open by the end of this year in the Charlotte, N.C. area, will be named Bloom, A Food Lion Market.
The retailer, which operates more than 1,200 stores in 11 states, said Bloom stores are being designed to serve customers by providing a simple, uncomplicated and hassle-free shopping experience. The first Bloom store will open May 26 in Charlotte.
Bloom will be a new brand under the Food Lion banner.
"Bloom is an extension of the Food Lion model," said Robert Canipe, Food Lion vice president of business strategy. "Bloom will offer competitive prices, provide the freshest products, and will focus on eliminating many of the hassles of shopping. Through these pilot stores, Bloom will seek to create a unique identity and customer base of its own."
Food Lion said it arrived at Bloom as the name because it wanted to create a brand that was upbeat, uncomplicated and hassle-free, yet founded in Food Lion's tradition of competitive prices.
