Major U.S. Averages Traded at Nine-month Highs, Trade Deficit Widened

Barry Adams
07 Jun, 2023
New York City

Stocks on Wall Street advanced and major indexes traded at new highs of the year. 

The S&P 500 index and the Nasdaq Composite index jumped to new highs in 2023 despite the worries of looming economic slowdown, stubborn inflation and multiple rate hikes over the last fourteen months. 

The S&P 500 index advanced to a  high not seen since August 2022 and the Nasdaq Composite index increased to a high not seen since April 2022. 

Financial markets are looking ahead to rate decisions next week and many investors are forecasting another rate hike of 25 basis points on June 14 in the U.S. 

Next week, the European Central Bank is also expected to revise higher its reference rate by 25 basis points. 

In international news, China's exports in May plunged 7.5% from a year ago to $283.5 billion, reversing an 8.5% increase in April, China's custom agency reported Wednesday.     

Exports in the period between January and May rose 0.3% from the corresponding period a year ago.     

Trade surplus in May declined to $65.81 billion from $78.40 billion a year ago, the smallest trade surplus in February after exports fell 7.5% faster than the 4.5% decline in imports.

 

U.S. Trade Deficit Widened to 6-month High In April

U.S. trade deficit widened in April to $74.6 billion from $60.6 billion in March, the Bureau of Economic Analysis reported Wednesday. 

Exports declined 3.6% to $246.9 billion and imports fell 1.5% to $323.6 billion. 

The increase in the goods and services deficit reflected an increase in the goods deficit of $14.5 billion to $96.1 billion and an increase in the services surplus of $0.6 billion to $21.6 billion.

In April, exports of goods decreased $9.4 billion to $167.1 billion and exports of services increased $0.2 billion to $81.9 billion.

Imports of goods increased $5.2 billion to $263.2 billion in April and imports of services decreased $0.4 billion to $60.4 billion.

The U.S. recorded a surplus with the Netherlands of $4.2 billion, South and Central America of $4.1 billion, Belgium $1.9 billion, Hong Kong $1.6 billion, Australia $1.0 billion, United Kingdom $0.9 billion, and Brazil $0.7 billion. 

The U.S. registered the largest deficits with China of $24.2 billion, European Union $17.3 billion, Mexico $13.0 billion.

Deficits with other countries included Vietnam of $8.5 billion, Germany $7.6 billion, Japan $6.8 billion, Canada $6.1 billion, Ireland $5.0 billion, Switzerland $4.5 billion, South Korea $4.3 billion, Italy $3.8 billion, India $3.5 billion, Taiwan $3.5 billion, Malaysia $2.3 billion, France $1.2 billion, Singapore $0.7 billion, Israel $0.6 billion, and Saudi Arabia $0.4 billion.

 

U.S. Indexes & Yields 

The S&P 500 index decreased 4.48 points to 4,269.18 and the Nasdaq Composite increased 12.83 points to 13,242.21. 

The yield on 2-year Treasury notes increased to 4.53%, 10-year Treasury notes edged up to 3.70% and 30-year Treasury bonds held at 3.87%. 

Crude oil increased $0.54 to $72.51 a barrel and natural gas prices increased 7 cents to $2.33 a thermal unit. 

 

U.S. Stock Movers

Dave & Buster's Entertainment Inc jumped 4.7% to $35.34 after the restaurant chain operator reported quarterly results ahead of market expectations. 

Stitch Fix Inc soared 9% to $4.01 after the online fashion platform posted a loss of 19 cents a share on revenue of $395 million. 

GameStop Corp increased 8.3% to $26.75 ahead of the specialty retailer's quarterly results today.