Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (145757)	9/11/2008 12:12:43 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 306849

Kosher?

To: Smiling Bob who wrote (145757)	9/11/2008 12:46:42 PM
From: Peter V	Read Replies (2) \| Respond to of 306849

Trade deficit surges, jobless claims remain high yet investors taking the market higher. WTF? Thursday September 11, 11:24 am ET By Christopher S. Rugaber, AP Business Writer Trade deficit surges to 16-month high, jobless claims remain elevated due to weak economy WASHINGTON (AP) -- The U.S. trade deficit soared in July to the highest level in 16 months as oil imports hit an all-time high, offsetting strong export growth. Meanwhile, new applications for unemployment benefits fell less than expected last week, the U.S. government said Thursday, as the struggling economy continues to take a toll on workers. Both slices of data helped lift investor unease about the economy, already aggravated by weakness in the financial sector. Stock indexes fell in early trading, with the Dow down 0.8 percent and the S&P 500 down 0.9 percent. The twin reports, coming less than 60 days before the presidential election, are also likely intensify the political debate over jobs and trade. The Labor Department reported that applications for jobless benefits dropped to a seasonally adjusted 445,000, down by 6,000 from the prior week and above analysts' expectations of 440,000. The four-week moving average, which smooths out week-to-week fluctuations, rose slightly to 440,000. The number of people continuing to draw jobless benefits increased to a five-year high of 3.53 million, above analysts' expectations. Separately, the Commerce Department said the gap between imports and exports rose 5.7 percent to $62.2 billion, much worse than the $58.8 billion Wall Street economists expected. The trade deterioration reflected record crude oil prices in July that pushed America's foreign oil bill to an all-time high of $51.4 billion, up 13.7 percent from June. The big rise in oil prices offset another strong showing for U.S. exports, which rose by 3.3 percent to a record $168.1 billion due to big gains in overseas sales of commercial aircraft, computers and U.S.-made cars. Economists welcomed the continued strength in exports, which have been the primary driver of the U.S. economy in a year when the country has been battered by a prolonged slump in housing, rising unemployment and a severe credit crunch. But David Resler, chief economist at Nomura Securities, said in a note to clients that the growth in exports "underscores a new vulnerability" for the economy as overseas growth "appears to be slowing abruptly." While the trade gap was driven by higher oil prices in July, a separate report from the Labor Department Thursday said falling oil prices in August helped bring the price of imported goods down by the steepest amount in almost 20 years. Import prices fell 3.7 percent in August, the first drop since December, as oil prices dropped 12.8 percent. That may help reduce inflation and provide some leeway for the Federal Reserve to maintain interest rates at current levels when it meets next week. The Fed has been torn this year between higher prices and a sluggish economy. The Bush administration points to the export gains as justification for its support of free trade. However, Democrats contend the administration's pursuit of free-trade agreements left U.S. workers exposed to unfair competition from low-wage countries with poor environmental records such as China. Democratic presidential candidate Barack Obama has said he will renegotiate the North American Free Trade Agreement with Canada and Mexico to get greater protection for U.S. workers. Republican John McCain has accused Obama of seeking to erect protectionist barriers that will make America less competitive in the global economy.