WASHINGTON — Fewer people are claiming unemployment benefits — but still too many to signal that the economy is close to gaining jobs. First-time claims for jobless benefits dropped last week to a seasonally adjusted 502,000, the Labor Department said yesterday.

That's the fewest claims since the week ending Jan. 3, and below economists' estimates.

Claims would have to fall to the high 400s to indicate the economy could soon produce even a slight gain in jobs, estimates Abiel Reinhart, an economist at JPMorgan Chase.

That level of claims could be reached by January, he said, and the economy should start gaining jobs sometime in the first quarter of 2010.

FRANCHISEES SUE BURGER KING ON $1 BURGER PROMOTION

CHICAGO — Burger King franchisees sued the hamburger company this week over its $1 double cheeseburger promotion, saying they're losing money on the deal.

The National Franchise Association, a group that represents more than 80 percent of Burger King's U.S. franchise owners, said the $1 promotion forces restaurant owners to sell the quarter-pound burger with at least a 10-cent loss.

While costs vary by location, the $1 double cheeseburger typically costs franchisees at least $1.10, said Dan Fitzpatrick, a Burger King franchisee from South Bend, Ind. and association spokesman.

INTEL WILL PAY $1.25B TO SETTLE 4-YEAR-OLD LAWSUIT WITH AMD

SAN FRANCISCO — Intel Corp. will pay $1.25 billion to make peace with Advanced Micro Devices Inc., as the companies whose microprocessors run nearly all personal computers finally found common ground in a bitter and colorful dispute that caused international antitrust trouble for Intel.

The settlement announced yesterday sent AMD stock soaring and ended a 4-year-old lawsuit in which AMD accused Intel of abusing its dominance of the chip market to keep a lid on AMD's share.

Intel has about 80 percent of the microprocessor market, and AMD has about 20 percent.

HOLIDAY SHOPPING OUTLOOK APPEARS IFFY AT WALMART, KOHL'S

NEW YORK — Shoppers' focus on staples such as socks and underwear is driving murky holiday outlooks at Walmart and Kohl's, even as both posted higher third-quarter earnings yesterday.

Both signaled they plan aggressive discounting to hang on to customers and drive sales this holiday season.

Walmart's price-cutting campaign is bringing more shoppers in the door, but they're spending less when they get there because the goods are priced lower.

Meanwhile, Nordstrom Inc. said yesterday its profit rose 17 percent in its fiscal third quarter, and it raised its 2009 profit outlook.

AS U.S. DOLLAR GAINS, CHINA MAY BE READY TO LET CURRENCY RISE

NEW YORK — The dollar edged up yesterday, breaking a decline that's caused developing countries to worry that the sinking U.S. currency is making their exports expensive and threatening their fledgling economic recoveries.

A lower dollar — and China's yuan, which is effectively pegged to the dollar — makes other countries' goods relatively more expensive. China has recently signaled that it might be ready to let its currency rise.

American manufacturers contend that China's yuan is undervalued by 20 percent to 40 percent against the dollar, giving the country a huge trade advantage.