New unemployment applications increase

WASHINGTON – New applications for unemployment benefits rose to the highest level in five weeks, but they remained in a range usually associated with better labor-market conditions, government data showed Thursday.

Initial claims climbed by 8,000 to a seasonally adjusted 362,000 in the week ended March 3, the Labor Department said. Claims from two weeks ago were revised up to 354,000 from 351,000.

The level of claims is an indicator of whether layoffs are rising or falling. Economists surveyed by MarketWatch had estimated claims would rise to 355,000 for last week.

The four-week average of claims, meanwhile, was virtually unchanged at 355,000, which is near a four-year low.

Starbucks news hurts Green Mountain stock

The stock of Green Mountain Coffee Roasters fell more than 15 percent after Starbucks said it will sell a different at-home coffee brewing system.

Starbucks last year partnered with Green Mountain.

Starbucks’ new machine, marketed with Germany-based Krueger and available this fall, makes both espresso drinks and brewed coffee. Green Mountain’s Keurig machines focus on brewed coffee.

The cups used in Starbucks’ new Verismo machines will not fit in Green Mountain’s Keurig machines.

“The relationship with Green Mountain is as solid today as it was when we began,” Starbucks CEO Howard Schultz said on a conference call with analysts. “It is in both our interests for Starbucks and Green Mountain to cooperate in such a way that we continue to sell those K-cups in the same spirit we did when we began.”

Green Mountain’s stock, which fell $1.32 to $62.40 in regular trading Thursday, dropped $10.50 shortly after the news was announced, then rebounded a bit. Starbucks shares rose 88 cents in regular trading to $50.37, a new 52-week high, then climbed another $1.68 in late trading to $52.05.

Officials optimistic on bond swap deal

ATHENS, Greece – Greece government officials and world markets appeared confident that a high number of private investors would participate in a major Greek debt reduction deal as the deadline to do so passed Thursday night.

Participation in the landmark agreement ended as planned at 10 p.m. (12 p.m. local time) Thursday.

It is aimed at slashing the country’s national debt by $140 billion, with private bondholders accepting a face-value loss of 53.5 percent in exchange for new bonds with more favorable repayment terms.

Initial results of participation in the exchange are due to be announced early today.

30-year mortgage drops to 3.88 percent

WASHINGTON – Fixed-rate mortgages remain a bargain at the start of the spring-buying season: The average rate on the 30-year mortgage dipped this week, while the 15-year loan fell to a record low.

Mortgage buyer Freddie Mac said Thursday that the rate on the fixed 30-year loan ticked down to 3.88 percent, from 3.90 percent the previous week. That’s slightly above the 3.87 percent average rate hit three weeks ago, which was the lowest since long-term mortgages began in the 1950s.

The average rate on the 15-year fixed mortgage fell to 3.13 percent, from 3.17 percent a week ago.