Oil prices drop on economic news

August 19, 2011 at 12:00a.m.

NEW YORK

Oil fell sharply Thursday along with a broad sell-off in stocks triggered by worries about the global economy.

In the U.S., two reports raised concerns about demand for gasoline, which is made from oil. First, more people than expected applied for unemployment benefits last week. And prices for gas, food and clothing rose last month.

Higher prices at a time when more people are out of work means Americans could drive even less than they do now. A private survey released earlier this week said U.S. motorists have reduced gasoline purchases for 21 straight weeks.

Gasoline, on average, cost $3.59 a gallon Thursday. That’s down 10 percent from a 2011 high of $3.98 on May 5. Gasoline should fall as low as $3.25 between mid-September and mid-October if oil stays at current levels, says Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service.

Mortgage rate falls to lowest on record

WASHINGTON

The average rate on a 30-year fixed mortgage has fallen to its lowest level on records dating to 1971.

The rate on the most-popular mortgage dipped to 4.15 percent from 4.32 percent a week ago, Freddie Mac said Thursday. Its previous low of 4.17 percent was reached in November.

The last time long-term rates were lower was in the 1950s, when 30-year loans weren’t widely available. Most long-term home loans lasted 20 or 25 years.

IBM pursues chips that act like brains

SAN FRANCISCO

Computers, like humans, can learn. But when Google tries to fill in your search box based only on a few keystrokes, or your iPhone predicts words as you type a text message, it’s only a narrow mimicry of what the human brain is capable.

The challenge in training a computer to behave like a human brain is technological and physiological, testing the limits of computer and brain science. But researchers from IBM Corp. say they’ve made a key step toward combining the two worlds.

The company announced Thursday that it has built two prototype chips that it says process data more like how humans digest information than the chips that now power PCs and supercomputers.

Lawyers accused of scam in bank suits

COSTA MESA, Calif.

California prosecutors sued several lawyers and call-center operators for reportedly duping desperate homeowners across the country into paying thousands of dollars to join dubious lawsuits against big banks.

The complaint unsealed Thursday in Los Angeles County Superior Court accuses prominent foreclosure attorneys Philip Kramer and Mitchell Stein and at least 17 other individuals and businesses of ensnaring borrowers in a scheme that falsely promised a cut of future settlements.

From wire reports

Selected local stocks

STOCK, DIVIDENDCLOSECHANGE

Aqua America, .62, 21.25 —.69

Avalon Holdings,2.66—.07

Clear Channel, .63 52.92 —.44

Cortland Bancorp, 7.18.00

Farmers Nat., .12, 4.25 —.10

First Energy, 2.20, 42.14—.92

FirstMerit Corp., .64,11.72 —.77

First Niles Financial, .32,7.25.00

First Place Fin., .75.02

FNB Corp., .48,8.53—.49

General Motors,23.60—1.34

General Electric, .60,15.34—.89

Motors Liquidation, .0422.00

Huntington Bank, .04, 4.74—.36

JP Morgan Chase, 1.00,35.19—1.38

Key Corp, .12,6.25—.44

LaFarge, 9.64 —.73

Macy’s, .40, 23.07—1.51

Parker Hannifin, 1.48, 65.64—3.46

PNC, 1.40,45.00—2.31

RTI Intl. Metals,24.25—.05

Simon Prop. Grp.,3.20,112.71—4.87

Stoneridge 7.72 —.53

United Community Fin. .9645—.02

Selected prices at 4 p.m. Thursday. Provided by Stifel Nicolaus. Not to be construed as an offer or recommendation to buy or sell any security.