Business briefs: Michaels breach affects 2.6 million cards

Michaels Stores Inc. said that about 2.6 million cards, or about 7 percent of all debit and credit cards used at its namesake stores, may have been affected in a security breach. The nation's largest arts and crafts chain said its subsidiary Aaron Brothers was also attacked, with about 400,000 cards potentially affected. Irving, Texas-based Michaels said that it has contained the incident, which began last year. It has received "limited" reports of fraud from banks and the payment card brands that are potentially connected to the breach. The compromised data includes customer information such as payment card numbers. But there's no evidence that names, addresses or PIN numbers were at risk, Michaels said.

The number of people seeking U.S. unemployment benefits last week rose 2,000 to a seasonally adjusted 304,000. Jobless claims continue to be near prerecession levels despite the slight increase. The Labor Department said that the four-week average of applications, a less volatile measure, fell 4,750 to 312,000. That average has fallen from 357,500 applications over the past 12 months. It is the lowest four-week average since October 2007, just two months before the Great Recession started. Applications are a proxy for layoffs. The current level of claims suggests that employers are holding on to their workers.

Facebook users in the U.S. will be able to see which of their friends are nearby using a new feature the company launched Thursday. The "Nearby Friends" feature must be turned on by the user, so people shouldn't expect to broadcast their location unknowingly. It will use your smartphone's GPS system to tell your Facebook friends you are nearby — provided they have the feature turned on as well. Rather than share your exact location, it will show only that you are nearby, say, within half a mile. By default, your exact location will be shared for only an hour, although you can change this.

Average U.S. rates on fixed mortgages fell this week for the second straight week as the spring home-buying season begins. Mortgage buyer Freddie Mac said the average rate for the 30-year loan fell to 4.27 percent from 4.34 percent last week. The average for the 15-year mortgage eased to 3.33 percent from 3.38 percent. Mortgage rates have risen about a full percentage point since hitting record lows about a year ago. Many analysts have been expecting an improving economy to lift the housing market.