Reuters - The number of U.S. workers filing new claims for jobless benefits fell unexpectedly last week to the lowest level since mid-April, a government report said Thursday, raising optimism that the sluggish economy may skirt a recession.

Reuters - Future U.S. bank failures linked to the downturn in the real estate market may include "institutions of greater size" than in the recent past, Federal Deposit Insurance Corp Chairman Sheila Bair said on Thursday.

AP - Rates on 30-year mortgages edged up this week to the highest level since March as investors worried about inflation threats.

Reuters - The European Central Bank reinforced the view on Thursday that the only way for interest rates in most major economies to go is up when, like the U.S. Federal Reserve days earlier, it rang alarm bells on inflation.

AP - Oil prices rose back to $125 a barrel Thursday after the dollar fell in response to comments by European Central Bank President Jean-Claude Trichet suggesting the bank could raise interest rates. At the pump, meanwhile, gas prices rose to a new record near $3.99, and are likely to hit $4 soon.

Reuters - Stocks pulled back from session highs on Thursday after Standard & Poor's cut the credit ratings of bond insurers MBIA Inc and Ambac Financial , keeping worries alive about credit losses.

AP - Wall Street rose sharply Thursday after investors got some comforting news about the economy — some better-than-expected retail sales in May and a drop in the number of laid-off workers seeking unemployment benefits. The Dow Jones industrials rose more than 130 points.

AP - Tax rebate checks gave consumers a little extra money in their pockets during May, but most were still spending conservatively, buying necessities such as food and gas and shying away from splurging on clothing or furniture. The result was some better-than-expected sales for the nation's retailers, with lower-priced merchants like discounters and wholesale clubs showing the strongest gains.

Reuters - Blue-chip stocks dipped on Wednesday to close at their lowest since mid-April after Federal Reserve Chairman Ben Bernanke stoked inflation worries and concerns about more credit losses dogged financial shares.

AP - Federal Reserve Chairman Ben Bernanke said Wednesday he does not believe the United States will experience the out-of-control prices seen with 1970s oil shocks.

Reuters - Federal Reserve Chairman Ben Bernanke said rising long-term inflation expectations were a "significant concern" for policy-makers but dismissed worry a wage-price inflation spiral was developing.