trade balance posts
FeedPosted Dec 5th 2010 12:30PM by Trey Thoelcke (RSS feed)
Filed under: Earnings Reports, Forecasts, AutoZone Inc (AZO), Smithfield Foods (SFD), Economic Data
After a week full of mixed economic data taking its toll on the markets, things will settle down somewhat this coming week.
- Monday: Fed releases October data on consumer credit outstanding.
- Tuesday: TIPP Economic Optimism Index is due.
- Wednesday: Labor Dept. offers initial jobless claims numbers for last week, EIA's crude oil inventory last week, October wholesale trade numbers from the Census Bureau.
- Friday: Trade balance data for October, Bureau of Labor Statistics releases its Import Price Index for November, preliminary Michigan Consumer Sentiment Index is due, and the Treasury Dept. releases the federal budget balance in November.
Continue reading Week in Preview: A Bit of a Breather (AZO, DG, SFD)
Posted Oct 9th 2009 12:20PM by Tom Johansmeyer (RSS feed)
Filed under: China, Economic Data
In August, the U.S. trade deficit showed an unexpected drop of 3.5%. This shrinks the deficit to a mere $30.7 billion – rather than the $33 billion economists expected. Oil prices surged, but the amount of shipments fell precipitously. The increase in exports suggests that the global economy is working its way out o the doghouse.
Exports of goods and services pushed 0.2% higher in August to $28.2 billion. This was the fourth consecutive month of increases. American farm products, cars and parts, industrial engines and telecommunications equipment sales all contributed to the small upward move.
Continue reading Surprise! Trade deficit drops 3.5%
Posted Dec 20th 2008 11:40AM by Douglas McIntyre (RSS feed)
Filed under: Industry, Raytheon Company (RTN), Recession
One of the things that really helps the U.S. balance of trade is weapons sales. In a recession, perhaps they should be encouraged more.
According to Reuters, Iran's Gulf neighbor, the United Arab Emirates, has signed a deal worth $3.3 billion to buy missiles from U.S. firm Raytheon (NYSE: RTN).
The Census Bureau reports that the October balance of trade was a negative $57 billion. A lot of that could be made up by selling missiles, tanks, rifles, and war planes. The Department of Defense has to approve most of the sales, but perhaps it should be annexed to the Department of the Treasury, at least until the recession is over. Some of the countries where a lot of sales are prohibited, like North Korea, could be added to the "OK to export weapons" list?
In September, The New York Times reported that "From tanks, helicopters and fighter jets to missiles, remotely piloted aircraft and even warships, the Department of Defense has agreed so far this fiscal year to sell or transfer more than $32 billion in weapons and other military equipment to foreign governments, compared with $12 billion in 2005." Up that number to $100 billion and think of the jobs it would create.
Weapons sales are not on the new Obama list of plans to create 2.5 million jobs by spending $800 billion. And, selling weapons does not cost the government at dime.
Douglas A. McIntyre is an editor at 247wallst.com.
Posted Oct 5th 2008 12:30PM by Trey Thoelcke (RSS feed)
Filed under: Earnings Reports, Forecasts, General Electric (GE), Alcoa Inc (AA), Economic Data
Alcoa Inc. (NYSE: AA) kicks off the new earnings seasons when it reports third quarter results on Tuesday. The Pittsburgh-based aluminum producer, which celebrated its 120th anniversary with the launch of its website, is expected to post a profit of 54 cents per share, down 15.6% from the same quarter of last year, on revenue of $7.2 billion, down 2.1%. While Alcoa has tended to fall short of estimates in recent quarters, in the second quarter it did offer a positive surprise of almost 3%. Its long-term earnings per share growth forecast is 14.8%, a little less than the S&P 500, and analysts polled by Thomson Financial on average recommend buying Alcoa, and have for more than 90 days. Shares reached a new 52-week low last week, and are down 48.9% from a year ago.
General Electric Co. (NYSE: GE) is also expected to report a slip in earnings this week. Analysts anticipate that the conglomerate will post a third-quarter profit of 45 cents per share, down just 6.3% from a year ago, on revenue of $47.7 billion, which is up 12.1%. GE has tended to eke out small positive surprises in recent quarters, by less than 1% in the second quarter. GE's long-term earnings per share growth forecast is only 11.0%, which is less than the sector average and the S&P 500. The consensus recommendation has recently swung to hold GE, but Warren Buffett has bought in to the tune of $3 billion. GE also reached a new 52-week low last week as the markets tumbled. GE shares are down 48.1% from a year ago.
Continue reading The week in preview: Alcoa, GE kick off earnings season
Posted Aug 8th 2007 3:45PM by Tom Barlow (RSS feed)
Filed under: International Markets, China, Economic Data, Politics

Is our thirst for foreign capital about to bite us? According to a
report in the U.K.'s Telegraph, officials of the Chinese government warn that they are prepared to dump their U.S. reserves onto the market should the U.S. government impose trade restrictions in an effort to persuade China to correct the Yuan/dollar imbalance.
China currently holds an estimated $900 billion in American bonds, and a total of $1.3 trillion worldwide. The warning is apparently a response to a bill backed by the Senate's Finance Committee that would impose tariffs to penalize China for currency manipulation.
This 'nuclear option', in the Telegraph's words, could be devastating to the already-weak dollar. However, as China's sugar daddy, such a blow to the U.S. economy would have vast repercussions on the Chinese economy as well. Any sane regime wouldn't take such a suicidal course of action.
So the question here, is one of sanity. Over the past decade, the Chinese leadership has shown many signs of economic savvy. One can only hope that the cooler heads prevail, and that this is simply brinksmanship aimed to carve out a better position in trade and monetary negotiations.