Business briefs: Revised fourth-quarter GDP: +0.1%

March 1, 2013 at 5:00AM

Revised fourth-quarter GDP figure: +0.1%

The U.S. economy didn't shrink at the end of last year after all, according to revised government data, but it barely grew. The updated estimate of the nation's gross domestic product showed it expanded at an annual rate of 0.1 percent during the fourth quarter — just above stall speed. Though tepid growth is better than none at all, the report still shows a fragile recovery that has been too weak to make a significant dent in the nation's unemployment rate. The adjustment was also smaller than some economists had hoped for.

J.C. Penney shares sink 17% after $552M loss

Shares of J.C. Penney Co. slid 17 percent after the department-store chain lost $4.3 billion in sales in the first year of Chief Executive Ron Johnson's turnaround plan. The shares fell to $17.57 at the close, the worst performer in the Standard & Poor's 500 index. J.C. Penney said Wednesday that its net loss in the quarter ended Feb. 2 widened to $552 million from $87 million a year earlier. The Plano, Texas-based retailer's annual revenue slid 25 percent to $13 billion. S&P cut its credit rating on the company to CCC+, the lowest tier of junk, citing further operational disruptions and "less than adequate" liquidity.

Initial jobless claims declined last week

First-time jobless claims dropped more than expected last week to 344,000 and the number of people collecting unemployment benefits fell to its lowest level since mid-2008, the Labor Department said. Initial claims for unemployment insurance were down 22,000 for the week ended Saturday, compared to the previous week. Analysts had expected claims to drop only slightly, to 360,000, last week. The less-volatile four-week average was 355,000, down 6,750 from the previous week.

Chrysler to bulk up on jobs at Indiana plants

Chrysler will hire 1,250 new workers and invest $374 million at its plants in central Indiana, where the automaker makes all its transmissions for North America. The investment, which Chrysler and Fiat CEO Sergio Marchionne announced in Kokomo, Ind., includes a commitment to spend $212 million to upgrade two plants in Kokomo and $162 million for equipment and a plant in nearby Tipton.

Menu changes in the works at McDonald's

McDonald's Corp. said it plans to cut its apple walnut salad and Chicken Selects in an effort to make room for new products expected to arrive this spring and summer. The chain is additionally reviewing options for its Angus Third Pounder, a spokeswoman said. The decision likely reflects a desire to make room for new products arriving soon, such as the McWrap sandwich with lettuce, tomato, cucumber, grilled or fried chicken, and a choice of sauce.

Subway offering some 6-inch subs for $3

If Subway's $5 Footlong is too expensive, the chain is now offering 6-inch subs for $3. The promotion makes Subway just the latest chain to step up its value offerings as the competition for price-conscious diners intensifies. With the broader restaurant industry expected to be flat this year, companies are going to greater lengths to convince people to eat out more. Subway says the $3 deal will be for a rotation of some sandwiches. The "Six-Inch Selects" promotion kicks off in March with the oven roasted chicken sandwich and will run through at least June.

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Edwin Schall got a dollar from a passerby as he held out a pan t get money for food along Nicollet Ave. ] (KYNDELL HARKNESS/STAR TRIBUNE) kyndell.harkness@startribune.com In downtown Minneapolis, Min. Tuesday, June 3, 2014. A new campaign in Minneapolis wants to end panhandling. The "Give Real Change Campaign" which has billboards in Downtown Minneapolis, is telling residents to end panhandling and give to a charitable organization instead. ORG XMIT: MIN1406031618130714
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