WASHINGTON (AP) -- Fewer people signed up for jobless benefits last week, an encouraging sign that most companies aren't resorting to large-scale layoffs as the country copes with continuing problems in the housing and credit markets.

The Labor Department reported Wednesday that new applications filed for unemployment insurance dropped by a seasonally adjusted 11,000 to 330,000 for the week ending Nov. 17. It was the lowest level since the beginning of November. The 330,000 level of claims was in line with economists' forecasts.

A year ago, new claims for unemployment insurance stood at 322,000.

The four-week moving average of claims, which smooths out week-to-week volatility, dipped last week to 329,750, a decrease of 750 from the previous week. It marked the lowest level since late October. A year ago, the four-week average of claims was 319,500.

"We continue to believe that most statistical and anecdotal evidence continue to point to a relatively healthy labor market," said Omair Sharif, an economist at RBS Greenwich Capital.

In other economic news, a gauge of future business activity suggested the economy's growth in the

NEW YORK (AP) -- It didn't happen Wednesday, it may not happen Thanksgiving day, but the price of oil seems destined to burst through the $100 mark sometime soon, leaving higher pump prices and rising heating fuel costs in its wake.

Energy futures balked on that drive Wednesday after the government reported that supplies at a key oil terminal in the Midwest rose for the first time in weeks. Analysts said it was a pause, not a retreat for energy futures that reached as high as $99.29 in electronic trading overnight.

"Not exciting enough to get us over the hump just yet," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

Overall crude inventories fell, and distillates including heating oil dropped more than expected last week, the Energy Department's Energy Information Administration reported.

The mixed report did little to shake prevailing view that oil supplies will tighten amid rising global demand, particularly from fast-growing economies in China and India.

"It's two steps forward, then one back in terms of this week's inventory cushion," said Tim Evans, an

SAN FRANCISCO (AP) -- Gap Inc. said Wednesday its third-quarter profit rose 26 percent as marketing costs fell.

But the company's cost-cutting campaign couldn't compensate for a slowdown in sales at its Gap and Old Navy chains. Companywide revenue was flat, and same-store sales -- a key measure of retail health -- fell 5 percent.

"We feel this is going to be a tough economic environment this upcoming holiday season," Chairman and Chief Executive Glenn Murphy said in a conference call.

Its shares sank more than 6 percent Wednesday.

The San Francisco-based company, which named Murphy as CEO during the summer, said net income for the quarter ended Nov. 3 rose to $238 million, or 30 cents per share, from $189 million, or 23 cents per share, in the year-ago period.

Sales were flat at $3.85 billion.

Analysts surveyed by Thomson Financial, on average, anticipated earnings per share of 29 cents on sales