Same-store sales down 2% at Gap Inc.

Shares of Gap Inc. tumbled as much as 5.3 percent in after-hours trading after the apparel retailer posted a comparable-store sales drop for June. Sales at stores open at least a year, including online orders, fell 2 percent, the San Francisco-based company said. Retail Metrics Inc., a research firm that tracks the industry, had estimated a gain of 0.8 percent. Sales at Gap's flagship chain and its Banana Republic stores both fell 7 percent last month. The lower-end Old Navy chain fared better, gaining 7 percent. That beat the 1.1 percent rise analysts had projected. Still, all three divisions performed worse than in the year-earlier period. Gap shares fell as low as $38.78 in extended trading after the sales figures were released. The stock, down 7.1 percent over the past year, closed at $40.97.

Initial jobless claims near seven-year low

Fewer people sought U.S. unemployment benefits last week, driving down the level of applications to nearly the lowest in seven years. Weekly applications for unemployment aid dropped 11,000 to a seasonally adjusted 304,000, the Labor Department said. That's not far from a reading of 298,000 two months ago, which was the lowest since 2007, before the Great Recession began. The four-week average, a less volatile measure, dipped 3,500 to 311,500, the second-lowest level since August 2007. Applications are a proxy for layoffs, so the low readings indicate that employers are letting go of fewer workers. The figures are the latest sign that the job market is steadily improving. Employers are adding jobs at a healthy clip and the unemployment rate is at a 5½-year low.

Mortgage rates tick up but remain low

Average U.S. rates on fixed mortgages edged up slightly, remaining near historically low levels. Mortgage buyer Freddie Mac said that the nationwide average rate for a 30-year loan rose to 4.15 percent from 4.12 percent last week. The average for the 15-year mortgage increased to 3.24 percent from 3.22 percent. Mortgage rates are slightly lower than they were at the same time last year, having fallen recently after climbing last summer. That's when the Federal Reserve began talking about reducing the monthly bond purchases it has been using to keep long-term interest rates low.

JPMorgan goes outside for new China chief

JPMorgan Chase has hired a top investment banker from UBS to head its China operations, which have been shaken by an anti-bribery investigation into the U.S. bank's hiring practices in Asia. JPMorgan announced that David Yi Li had been appointed its senior country officer for China and chairman of the bank's local management committee in the country. Li was most recently the chairman and country head for China at UBS, as well as chairman of the Swiss bank's joint-venture brokerage business in mainland China. JPMorgan's former chief executive for China investment banking, Fang Fang, was arrested by Hong Kong's anti-graft agency in May.

Crumbs explores ways to reopen stores

Will cupcake chain Crumbs get new dough and rise again? The New York company said it is in talks with "various interested parties" and could restructure its business days after closing its stores. "We're pleased to be in talks with various interested parties that are allowing us to pursue all of our options for the business, which includes consideration of restructuring alternatives," CEO and General Counsel Edward Slezak said.

Verizon continues to add subscribers

Verizon added more than 1.4 million long-term wireless subscribers in the second quarter, with strong gains in both smartphones and tablets, the company said. Verizon Communications Inc. CEO Lowell McAdam said the company's wireless profit margins remain consistent with the past several quarters. Verizon is the nation's largest wireless carrier. The second-quarter gains cited are for retail postpaid plans, which are the lucrative ones offered to good-credit customers.

FROM NEWS SERVICES