[naviga:h3]Unemployment benefits fall[/naviga:h3]

WASHINGTON — Fewer people sought U.S. unemployment benefits last week, evidence that layoffs are scarce and employers are likely hiring at a solid clip.

Weekly applications for unemployment aid slipped 4,000 to a seasonally adjusted 262,000, the Labor Department said. The four-week average, typically a less volatile measure, rose 3,000 to 265,250.

The number of people receiving benefits ticked up 15,000 to 2.18 million. That’s nearly 4 percent lower than a year earlier.

[naviga:h3]Gap offers muted outlook for profit[/naviga:h3]

NEW YORK — Gap offered a muted outlook after reporting a 43 percent drop in net income for the second quarter, weighed down by store closures.

The company, which operates Gap, Banana Republic and Old Navy stores, said it earned $125 million, or 31 cents per share, for the period. That compares with $219 million, or 52 cents per share, last year. Adjusted results were 60 cents per share, a penny above market forecasts. Revenue slipped 1.2 percent to $3.85 billion.

The company has been revamping its brands, but a promised turnaround has failed to come to fruition.

[naviga:h3]Wal-Mart raises profit outlook[/naviga:h3]

NEW YORK — Wal-Mart’s vast fleet of stores and its online business are starting to click together.

The company raised its earnings outlook for the year and delivered strong profit and sales for the second quarter, as moves to improve the store and online experience are winning over customers.

Wal-Mart has launched a flurry of changes, from making sure vegetables look good to cleaning up the stores to being sharper on keeping prices low.

It’s melding online services with the stores — rolling out a mobile payment system to speed checkouts.

And it’s pressing ahead with online grocery and pick-up services.

[naviga:h3]Hormel’s sales rise after avian flu[/naviga:h3]

AUSTIN, Minn. — Hormel Foods reported better-than-expected quarterly sales on Thursday, as the maker of Spam canned meat and Jennie-O turkey recovered from avian flu that hit its results a year ago.

The company said total sales were up 5 percent, boosted by a 1 percent increase in volume.

For the quarter, the company earned $195.7 million, or 36 cents per share. That was better than the 34 cents per share analysts expected, according to Zacks Investment Research. Total revenue of $2.3 billion in the period also topped market expectations of $2.24 billion.

[naviga:h3]T-Mobile phasing out data limits[/naviga:h3]

NEW YORK — T-Mobile is phasing out data limits and pushing people toward unlimited data plans — which will mean higher prices for many new customers.

Although T-Mobile is cutting the price of the unlimited plan, those who haven’t been using that much data might eventually pay more for unlimited data they don’t need.

T-Mobile’s announcement Thursday comes a day after AT&T said it would raise prices on some plans while giving customers more data. Verizon made a similar move last month.

[naviga:h3]Eddie Bauer stores hit by malware[/naviga:h3]

Eddie Bauer says its retail stores’ point-of-sale systems were infected with malware earlier this year, possibly giving hackers access to customers’ payment card information.

The Bellevue, Wash.-based clothing retailer said Thursday it will offer free identity protection services for a year to all customers who shopped at Eddie Bauer stores between Jan. 2 and July 17.

Online sales through the company’s Website weren’t affected by the malware.

Eddie Bauer says it operates more than 360 stores in North America. It says an investigation conducted by forensic experts found that the intrusion in its stores was part of an attack directed at restaurants, hotels and other retailers.

The retailer says it has already strengthened the security of its point-of-sale systems to prevent more intrusions.