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US unemployment benefit applications rise to 360,000

WASHINGTON (AP) - The number of people applying for U.S. unemployment benefits rose 16,000 last week to a seasonally adjusted 360,000, although the level remains consistent with steady hiring.

The Labor Department said Thursday that the less volatile four-week average increased 6,000 to 351,750.

The weekly applications data can be volatile in July because some automakers briefly shut down their factories to prepare for new models and many schools close. Those factors can create a temporary spike in layoffs.

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Rate on 30-year mortgage at 2-year high: 4.51 percent

WASHINGTON (AP) - The average U.S. rate on the 30-year fixed mortgage rose this week to 4.51 percent, a two-year high. Rates have been rising on expectations that the Federal Reserve will slow its bond purchases this year.

Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan jumped from 4.29 percent the previous week. Just two months ago, it was 3.35 percent - barely above the record low of 3.31 percent.

The average on the 15-year fixed mortgage rose to 3.53 percent from 3.39 percent last week. That's the highest since August 2011.

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RealtyTrac: Home repossessions declined in June

LOS ANGELES (AP) - Fewer U.S. homes entered the foreclosure process or were repossessed by banks in June, the latest sign that the nation is shaking off its housing bust hangover.

Lenders initiated the foreclosure process on 57,286 homes last month, the lowest level for any month in 7 1/2 years, foreclosure listing firm RealtyTrac Inc. said Thursday.

Foreclosure starts are on pace to reach roughly 800,000 this year, down from 1.1 million last year, the firm said.

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US government reports $116.5 billion surplus in June

WASHINGTON (AP) - The federal government on Thursday reported a rare surplus of $116.5 billion in June, the largest for a single month in five years. The gain kept the nation on track for its lowest annual deficit in five years.

The June surplus was due in part to $66.3 billion in dividend payments from Fannie Mae and Freddie Mac. The mortgage giants were taken over by the government at the height of the 2008 financial crisis and are now repaying taxpayers for the support they received.

Through the first eight months of the budget year, the deficit has totaled $509.8 billion, according to the Treasury. That's nearly $400 billion lower than the same period last year.

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Nokia unveils phone with powerful camera

NEW YORK (AP) - Nokia is unveiling a new phone with a powerful camera that promises sharper images, even in low light.

The Nokia Lumia 1020 was introduced Thursday at an event in New York. It will run Microsoft's Windows Phone system.

The 41-megapixel camera records more detail than other camera phones and even tops point-and-shoot cameras. More pixels mean more sensors for capturing the light that forms an image.

Although more expensive cameras with better lenses can take better images, those cameras aren't always with you. Nokia says the Lumia 1020 gives people the ability to take good pictures with a device they always carry.

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Sprint launches 'guarantee' for unlimited plans

NEW YORK (AP) - Sprint is introducing a new wireless plan that guarantees new and existing subscribers unlimited voice, text and data plans, in a move to differentiate its service from rivals AT&T and Verizon.

Sprint Nextel Corp. said Thursday that the plan, called the "Sprint Unlimited Guarantee," offers unlimited data for $30 a month on smartphones and $10 per month on traditional phones. Voice and text cost $50 for the first line and less for additional phone lines.

Sprint, the third-largest U.S. wireless carrier, is now under the control of Japanese investment firm SoftBank. Softbank owns a 78 percent stake in Sprint after a $21.6 billion deal closed on Wednesday.

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By The Associated Press(equals)

The Dow Jones industrial average rose 169.26 points, or 1.1 percent, to 15,460.92. The Standard & Poor's 500 jumped 22.40 points, or, 1.4 percent, to 1,675.02. The Nasdaq composite rose 57.55 points, or 1.6 percent, to 3,578.30.

U.S. benchmark crude fell $1.61 to close at $104.91. Brent crude, which is used to price imported crude used by many U.S. refineries, fell 78 cents to $107.73.

Wholesale gasoline rose 1 cent to settle at $3.02 a gallon. Natural gas fell 7 cents to settle at $3.61 per 1,000 cubic feet. Heating oil remained unchanged, settling at $3.00 a gallon.