AP - Arizona is preparing to ask an appeals court to lift a judge's ruling that put most of the state's immigration law on hold in a key first-round victory for the federal government in a fight that may go to the U.S. Supreme Court.

AP - A second U.S. Navy sailor who went missing in a dangerous part of eastern Afghanistan was found dead and his body recovered, a senior U.S. military official and Afghan officials said Thursday.

AP - President Barack Obama said Thursday that the racial firestorm that led to the ouster of a black Agriculture Department official was a "phony controversy" generated by the media. He said his administration overreacted by forcing her out.

AP - Ousted Agriculture Department employee Shirley Sherrod said Thursday she will sue a conservative blogger who posted an edited video of her making racially tinged remarks last week.

AP - A lawyer for Rep. Charles Rangel negotiated a possible last-minute plea bargain Thursday as the veteran New York congressman steeled himself for the disclosure of charges that he violated House rules.

AP - The government's point man for the Gulf spill met with coastal parish officials Thursday to talk about what's next now that the oil has stopped flowing.

AP - New jobless claims fell last week for the third time in four weeks but remain elevated. The decline is a sign that the economy likely added jobs in July, although not enough to lower the nation's high unemployment rate.

AP - Calm, cool weather Thursday morning dampened a wildfire that destroyed 25 buildings north of Los Angeles, but crews were prepared for afternoon winds that could kick up the flames again, a fire spokesman said.

Reuters - New U.S. claims for unemployment benefits fell slightly more than expected last week, offering a ray of hope for the anemic labor market recovery.

Reuters - The tide of lawsuits unleashed by BP's oil spill in the Gulf of Mexico breaks into an Idaho courtroom on Thursday, just as the company's rivals are counting the cost of a ban on offshore drilling.

Reuters - Heavy monsoon rains in Islamabad on Thursday hampered recovery efforts at the site of a Pakistani plane crash that killed all 152 people on board a day earlier, a senior police officer said.

Reuters - The United States should alter policy to take account of China's role as a major player on the world stage if it wants to avoid friction and instability, a major state newspaper said on Thursday.

Reuters - Afghan President Hamid Karzai questioned on Thursday the willingness of his Western allies to strike insurgent bases in Pakistan given the strong evidence of Islamabad's support for the Taliban.

Reuters - A U.S. judge on Wednesday blocked key parts of Arizona's tough new immigration law hours before it was to take effect, handing a victory to the Obama administration as it tries to take control of the issue.

Reuters - Foreclosures rose in 3 of every four large U.S. metro areas in this year's first half, likely ruling out sustained home price gains until 2013, real estate data company RealtyTrac said on Thursday.

AFP - A French nursing assistant admitted Thursday suffocating eight of her newborn babies "because she did not want any more children", prosecutors said.

AFP - Two children were plucked from the waters around a capsized boat in the Democratic Republic of Congo, the only survivors of a tragedy feared to have killed around 140 people, officials said Thursday.