NEW YORK (AP) — Stocks are little changed in early trading on Wall Street as traders look over some mixed news on the U.S. economy. The number of people applying for unemployment benefits dropped last week, but the government also said the economy shrank in the first three months of the year. Hillshire Brands jumped 16 percent after Tyson Foods made an offer for the company, two days after a separate bid from poultry producer Pilgrim’s Pride.
WASHINGTON (AP) — It turns out the U.S. economy was hit even harder by the harsh winter than first suspected. It actually shrank from January through March. The Commerce Department now says the gross domestic product contracted at an annual rate of 1 percent in the first quarter, rather than growing at a barely discernible 0.1 percent as estimated last month. The dip reflected slower stockpiling by businesses, a cutback in business investment and a wider trade deficit. Economists are looking for a strong rebound in the current quarter.
WASHINGTON (AP) — The number of Americans seeking unemployment benefits is near its lowest level in seven years. The Labor Department says weekly applications for unemployment aid dropped by 27,000 last week to a seasonally adjusted 300,000. That’s just above a seven-year low reached three weeks ago. The less volatile four-week average fell to the lowest number since August 2007, 311,500.
WASHINGTON (AP) — Average rates on fixed mortgages have fallen for the fifth straight week. Mortgage buyer Freddie Mac says the average rate for a 30-year loan edged down to 4.12 percent this week from 4.14 percent last week. The average for the 15-year mortgage declined to 3.21 percent from 3.25 percent.
WASHINGTON (AP) — Home buying is picking up, but the pace is still weaker than last year amid higher prices and relatively tight supplies. The National Association of Realtors says more Americans signed contracts to purchase homes in April than the prior month. Its seasonally adjusted pending home sales index rose 0.4 percent last month to 97.8. But the index is 9.2 percent below its level a year ago.
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