New applications for jobless benefits plunged to the lowest level in 14 weeks, a possible sign that the massive wave of layoffs has peaked. Still, the number of unemployed workers getting benefits climbed to a new record. Analysts acknowledged the positive economic signals but cautioned that any recovery will be subdued as long as unemployment stays high. The Labor Department reported Thursday that the number of newly laid off workers applying for benefits dropped to 601,000 last week. That was far better than the rise to 635,000 claims that economists expected. The total number of people receiving jobless benefits climbed to 6.35 million, a 14th straight record.
Shareholders OK Verizon exec pay
Verizon’s top executives easily passed their “say on pay” test Thursday when their pay package won overwhelming shareholder approval that brushed aside complaints the compensation was excessive. Although the vote announced at Verizon’s annual meeting in Louisville was merely advisory, a “no” vote on the compensation for Chief Executive Ivan Seidenberg and other executives would have been embarrassing for the New York-based communications company. Even a leading critic of the compensation said afterward that the 90 percent vote in favor of the package shows most shareholders are pleased with the direction of Verizon Communications Inc., which has posted consistent profits.
Sales at Wendy’s and Arby’s show a drop
Value meals at Wendy’s and a new line of roast beef sandwiches at Arby’s helped bring in customers, but Wendy’s/Arby’s Group Inc. still posted a loss in its first quarter on Thursday. The nation’s third-largest fast-food chain was hurt by a hefty one-time charge related to the combination of the two brands last year and an 8 percent decline in sales at established Arby’s company-owned locations. Chief Executive Roland Smith called the drop in same-store sales “disappointing” on a conference call with investors Thursday. Arby’s has struggled to compete with big discounts and promotions at competitors because it has higher prices.
Consumers spend more during April
April retail sales figures offered more signs that consumers are starting to feel better about spending. But they are still keeping their budgets tight, sticking mostly to necessities such as groceries and health care products. In a glimmer of hope for the broader economy, some mall-based clothing stores saw their declines stabilize, and Wal-Mart, the world’s largest retailer, reported some strength in housewares and other discretionary goods. But with unemployment stubbornly high, the results may not signal a significant recovery. Among merchants that reported Thursday, The Children’s Place, T.J. Maxx owner TJX Cos. Inc. and teen retailer The Buckle saw bigger gains than expected.
From Herald news services
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