U.S. Weekly Jobless Claims Fall, Deficit Narrows

Arthi Gupta
09 Aug, 2012
New York City

U.S. indexes struggled and trade deficit declined and weekly jobless claims fell. The euro declined for the third day in a row. China

[R]10:30 AM New York – U.S. indexes struggled and trade deficit declined and weekly jobless claims fell. The euro declined for the third day in a row. China’s inflation fell and factory output decelerated more in July.[/R]

U.S. and global indexes fell and trade deficit fell and seasonally adjusted weekly claims fell unexpectedly. The European indexes slid on mixed earnings and the central bank lowered the outlook.

China reported a raft of economic data that highlighted weak manufacturing and weakening inflation and dashed hopes any contribution to global recovery.

Inflation in China eased for a fourth straight month to reach a 30-month low in July and provided an opportunity to policymakers to increase stimulus measures.

Inflation in China fell to 1.8% in July from 2.2% in June, the National Bureau of Statistics said and producer prices fell 2.9% annually in July, the fifth monthly decline in a row.

The Bank of Japan decided to keep its stimulus program and key interest rate unchanged today.

U.S. Deficit Narrows

U.S. trade deficit narrowed in June, according to data released by the U.S. Commerce Department today.

June month exports increased to $185 billion and imports decreased to $227.9 billion and trade deficit fell to $42.9 billion in June from the revised $48 billion in May.

June exports were $1.7 billion more than May exports of $183.3 billion. June imports were $3.5 billion less than May imports of $231.4 billion.

The goods and services deficit decreased $7.4 billion from June 2011 to June 2012. Exports were up $12.3 billion, or 7.1%, and imports were up $4.9 billion, or 2.2%.

U.S. Weekly Jobless Claims Fall

Seasonally adjusted initial claims decreased 6,000 to 361,000, from the previous week''s revised figure of 367,000 in the week ending August 4.

The 4-week moving average was 368,250, an increase of 2,250 from the previous week''s revised average of 366,000.

Earnings Review

Advance Auto Parts, Inc. ((AAP)), the automotive aftermarket parts retailer reported second quarter total sales decreased 1.3% to $1.46 billion, reflecting a comparable store sales decrease of 2.7%. Net income for the quarter declined to $99.61 million or $1.34 per share from $113.11 million or $1.46 per share in the same quarter last year.

AMC Networks Inc. ((AMCX)), the holding company said second quarter net revenues increased 12.2% to $328 million. Net income in the quarter rose to $41 million or 57 cents per diluted share compared with $27 million or 39 cents per diluted share) in the second quarter of 2011.

Brinker International, Inc. ((EAT)), the casual dining chain operator said fourth quarter total revenues increased 1.5%nt to $728.4 million. Net income in the quarter rose to $47.0 million or 61 cents per diluted share from $41.92 million or 49 cents per share in the prior-year quarter.

Cooper Tire & Rubber Company ((CTB)), the tire manufacturer reported second quarter net sales increased 15% to $1.06 billion compared with the second quarter of 2011. Net income attributable to the company surged to $52 million or 82 cents per diluted share compared with $12 million or 18 cents per share for the second quarter of 2011.