Jobless claims fall in sign that employment market is resilient

The number of Americans applying for unemployment benefits fell last week, another sign that the job market remains resilient in the face of high interest rates.

Jobless claims dropped by 7,000 to 227,000 last week, the Labor Department reported Thursday. The four-week average of claims, which smooths out week-to-week ups and downs, fell by 4,500 to 236,500.

In the week that ended Aug. 3, 1.86 million Americans were collecting jobless benefits, down by 7,000 from the week before.

Weekly filings for unemployment benefits, which are a proxy for layoffs, remain low by historic standards. From January through May, claims averaged a rock-bottom 213,000 a week. But they started rising in May, hitting 250,000 in late July and adding to evidence that high interest rates are taking a toll on the U.S. job market.

But claims have since fallen two straight weeks, dispelling worries that the job market was deteriorating rapidly rather than just slowing. The Federal Reserve, fighting inflation that hit a four-decade just over two years ago, raised its benchmark interest rate 11 times in 2022 and 2023, taking it to a 23-year high. Inflation has come down steadily — from 9.1% in June 2022 to a three-year low of 2.9% last month. Despite higher borrowing costs, the economy and hiring kept cruising along, defying widespread fears that the United States would sink into recession.

Resorts World said to cater to crime figures

Resorts World Las Vegas was accused of catering to people with ties to organized crime in a complaint filed Thursday by the Nevada Gaming Control Board.

In a 31-page disciplinary complaint, the board said Resorts World, a major property on the Las Vegas Strip owned by Genting Group, “welcomed certain individuals with suspected or actual ties to illegal bookmaking, histories of federal felony convictions related to illegal gambling businesses, and ties to organized crime.”

The company didn’t immediately respond to a request for comment.

Resorts World is among the newer properties on the Las Vegas Strip, the largest hub for legal gambling in the U.S. The $4.3 billion property opened in June 2021 featuring 3,500 hotel rooms and a 5,000-seat theater.

Stocks rise for sixth day in a row

Retail sales in July came in above expectations, the government reported on Thursday, painting an optimistic picture of consumer spending that could ease concerns about the strength of the economy.

The better-than-expected results, pointing to continued economic sturdiness, drove stocks higher. The S&P 500 jumped 1.6 percent, its sixth daily gain in a row. The tech-heavy Nasdaq rose even more.

Retail sales increased 1 percent in July from the previous month, the Commerce Department said, well above the 0.4 percent rise that economists were expecting. A bounce-back in auto sales as cyberattack-related disruptions faded probably intensified the jump in overall retail sales, analysts said. But sales excluding autos and gasoline, a calculation that can be more indicative of spending trends, also beat expectations, rising 0.4 percent.

Consumer spending is a key driver of the U.S. economy, accounting for roughly two-thirds of gross domestic product.

The retail sales report, which is not adjusted for inflation, pointed to resilience in consumer spending and provided reassurance after recession fears, tied to weaker-than-expected employment numbers, catalyzed a market sell-off early this month.

Compiled from Associated Press, Bloomberg and New York Times reports