FALL

The U.S. economy shrank less than expected in the second quarter, despite a record drop in inventories, and fewer workers filed new claims for jobless benefits last week, a sign the economy was starting to heal.

SEATTLE - U.S. retailers could see sales in the 2009 holiday season decline from last year's dismal results or show only a slight increase, even in the best scenario, according to a new forecast.

The U.S. economy shrank less than expected in the second quarter, despite a record drop in inventories, and fewer workers filed new claims for jobless benefits last week, a sign the economy was starting to heal.

Luxury home builder Toll Brothers Inc reported a narrower-than-expected quarterly loss on Thursday, but shares fell amid concern about the extent that price cuts were supporting sales.

The number of U.S. workers filing new claims for jobless benefits fell last week to 570,000, and those collecting long-term unemployment benefits dropped to the lowest level since April, government data showed on Thursday.

Stock index futures fell on Wednesday as oil futures turned lower and ahead of durable goods and new home sales data.

Kitchen-cabinet maker American Woodmark Corp posted a surprise quarterly loss as margins were weighed down by labor and overhead costs, sending its shares down 17 percent.

Oil fell below $74 a barrel on Tuesday, down for the first time in six days on softer Asian shares as renewed concerns over the economic recovery emerged, after reaching a 10-month high a day earlier.

Benchmark iron ore prices in China fell to $95 a tonne on Monday, easing 17 percent from its nearly one-year peak of $115 in early August, as traders said many Chinese steel mills stopped buying ore for future delivery.

British gas producer BG Group Plc said a well it and partner Petrobras drilled offshore Brazil does not contain hydrocarbons despite an initial examination suggesting gas could be present.

Hanson plans to play a bunch of new music for its fans this fall, even though the sibling trio's new album probably won't come out until the spring of 2010.

Suntech Power Holdings Co Ltd posted a higher-than-expected second-quarter profit on Thursday but trimmed its full-year forecast for shipments and said prices on solar panels were still falling sharply, sending shares down 3 percent.

Semiconductor gear maker Photronics Inc forecast a wider-than-expected loss for the fourth quarter, hurt by higher interest costs, sending its shares down 8 percent.

Oil fell below $69 a barrel on Wednesday, at one stage losing more than $1, after a near 5 percent slump in Chinese shares sent doubts rippling through global markets about the strength of the world economic recovery.

Deere & Co said on Wednesday its earnings in the latest quarter fell 27 percent as ongoing weakness in its construction and forestry equipment business offset strength in demand for its tractors and harvesters, especially in North America.

Oil fell below $69 a barrel on Wednesday after a near 5 percent slump in Chinese shares sent doubts rippling through global markets about the strength of the world economic recovery.

The dollar and yen rose on Wednesday after Chinese shares extended losses, prompting investors to pull back from riskier assets.

Ground-breaking on new U.S. family homes rose for a fifth month in a row and producer prices tumbled, keeping hopes for economic recovery alive.

New U.S. housing starts and permits unexpectedly fell in July, pulled down by steeper declines in multifamily units, a government report showed on Tuesday.

The euro hit a two-week low against the yen on Monday and struggled versus the dollar as weak global shares and oil prices ruined traders' appetite for risk and battered currencies seen to be high-risk.

Hennes & Mauritz , the world's third-biggest clothing retailer, reported on Monday a bigger-than-expected 3 percent drop in year-on-year sales at established stores in July.