U.S. report shows small rise in retail salesSales at U.S. retailers increased 0.1 percent in December from the month before, the government said, in a report that bucked expectations of stronger sales during the holiday period. The Commerce Department said sales rose to a seasonally adjusted $400.6 billion, an advance of 6.5 percent from the same month in 2010. Holiday sales -- defined as November and December retail sales excluding autos, gasoline, food services and non-store outlets -- grew 4.1 percent from last year, according to calculations by IHS Global Insight.
End of holidays sends jobless claims higherThe thousands of temporary workers who lost their jobs after the holidays dampened the weekly unemployment report. New jobless claims climbed to 399,000 in the week ended Saturday. That was 24,000 more than the previous week and the highest number in six weeks, the Labor Department said. The four-week moving average of jobless claims was 381,750, an increase of 7,750 from the previous week's revised average of 374,000. The four-week moving average is a less volatile measure of joblessness.
Profit less than expected at Williams-SonomaWilliams-Sonoma Inc., the owner of its namesake, Pottery Barn and West Elm home-goods chains, said profit may be less than it previously forecast because of holiday discounts. CEO Laura Alber said the Williams-Sonoma brand faced "greater challenges" because of discounting on nationally branded products. Sales at all stores open at least a year fell 0.3 percent in the two-month holiday period ended Dec. 26. The company's shares dropped 12 percent to $34.32.
Burger King gives delivery service a trial runBurger King Holdings Inc., the operator of 7,500 fast-food restaurants in the U.S. and Canada, is trying out delivery service at some stores in Virginia and Maryland as a possible way to boost sales. The Miami-based chain will expand its test to 16 locations from four by Jan. 23, spokeswoman Kristen Hauser said, declining to say whether the service will be offered nationwide. Available from 11 a.m. to 10 p.m., deliveries cost $2 and there is a minimum order of $8 to $10.
RBS to cut 3,500 investment banking jobsThe Royal Bank of Scotland said it would eliminate 3,500 jobs in its investment banking division over the next three years in response to volatility in global financial markets. The bank, in which the British government holds an 82 percent stake, plans to revamp its wholesale banking division, as well as seek buyers for unprofitable operations.
Another record low for U.S. mortgage ratesRates for 30-year U.S. mortgages fell to the lowest level on record after Federal Reserve Chairman Ben Bernanke urged lawmakers to do more to revive housing. The average rate for a 30-year fixed loan decreased to 3.89 percent in the week ended Thursday, the lowest in records dating to 1971, from 3.91 percent, Freddie Mac said. The average 15-year rate dropped to 3.16 percent from 3.23 percent, according to the mortgage-finance company.
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