Business Highlights

GM sale cleared, path opens to exit Chapter 11

DETROIT (AP) — The path is now clear for General Motors Corp. to leave bankruptcy protection in record time as a leaner company that is better equipped to compete in a brutal global auto market.

On Thursday, a judge's order allowing GM to sell most of its assets to a new company went into effect, despite a last-minute appeal by plaintiffs in a product liability case.

GM spokeswoman Julie Gibson said U.S. Bankruptcy Judge Robert Gerber's order became effective at 12 p.m. EDT. GM lawyers are working on paperwork to close the sale as quickly as possible, after which GM would leave bankruptcy protection.

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Gains in financials, material stocks lift market

NEW YORK (AP) — Stocks edged higher Thursday as investors put money into banking and industrial stocks as well as commodities. Investors worried about the economy have been cautious about buying stocks, even after heavy selling earlier this week made shares look relatively cheap.

Investors were encouraged by better-than-expected results from aluminum maker Alcoa Inc., which started second-quarter earnings season and stoked hopes for more upbeat corporate reports to come.

The gains were tempered by weak sales reports from retailers and evidence that the labor market is still hurting. The Dow Jones industrial average tacked on 5 points to 8,183.17, a second day of modest gains after tumbling 161 points Tuesday.

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Jobless claims indicate economy remains weak

WASHINGTON (AP) — Even though new claims for jobless benefits fell more than expected last week, dipping below 600,000 for the first time since early January, the number of Americans seeking this safety net points to an economy that is still very weak.

Layoffs are slowing, but jobs are scarce, leaving nearly 7 million Americans collecting unemployment checks and retailers looking for customers.

The number of newly laid-off workers requesting unemployment insurance fell by 52,000 to a seasonally-adjusted 565,000, the Labor Department said Thursday. But the drop was mostly due to a shift in the timing of auto-related layoffs, leading many economists to discount the decline.