WASHINGTON — The number of newly laid-off Americans filing first-time claims for jobless benefits fell to the lowest level since early January, as layoffs eased a bit amid a fledgling economic recovery.

The fourth drop in new claims in five weeks is a sign the labor market is slowly healing. But employers are reluctant to hire new workers and the unemployment rate is expected to keep climbing well into next year.

The Labor Department said yesterday that new claims for unemployment insurance dropped last week to a seasonally adjusted 521,000, better than analysts expected and down from 554,000 the previous week.

PEPSI CUTS PRICES, EXTENDS DISCOUNTS

MILWAUKEE — Soft drink and snack maker PepsiCo Inc. said yesterday that it's creating new products at lower prices and plans to continue offering discounts in its Frito-Lay and beverage businesses.

The effort seems to be working for PepsiCo's Frito-Lay business, which posted revenue and volume gains in the third quarter. But the beverage business, with brands like Pepsi cola, continued to slump as consumers cut their spending and continued switching to healthier juices and teas.

Overall, the Purchase, N.Y.-based company said its fiscal third-quarter profit rose 9 percent, thanks in part to cost-cutting, even as revenue slipped 1 percent.

GM NEAR DEAL TO SELL ITS HUMMER BRAND

DETROIT — General Motors Co., seeking to shed brands after emerging from bankruptcy, is near an agreement to sell its Hummer sport-utility vehicle business to China's Sichuan Teng-zhong Heavy Industrial Machinery Co. for about $150 million, three people familiar with the deal said yesterday.

GM may accept a lower price for Hummer than the $500 million value it estimated in bankruptcy court documents to make progress on restructuring after the sale of the Saturn brand fell through last week.

For Tengzhong, a deal would propel the industrial manufacturer into the global auto market. Tengzhong, based in Chengdu, China, said in June it was in talks to buy Hummer as GM plans to shed half of the eight brands it sells in the U.S.

ANTI-TRUST PROBE TARGETS MONSANTO

ST. LOUIS — Monsanto Co. says the Justice Department is investigating whether it violated anti-trust rules in trying to expand its dominance of the market for genetically modified crops.

The department's investigation of Monsanto is part of a previously announced inquiry into consolidation in the seed industry. It focuses on the company's licensing agreements with seed companies.

St. Louis-based Monsanto is the world's biggest seed company, including operations in Hawai'i, and its patented genes are inserted into a majority of U.S. corn and soybean crops. Critics say Monsanto has used its market clout to squeeze competitors.

A Justice Department spokeswoman declined to confirm or deny the probe.