ECONOMIC REPORT



a truck that is driving down the street: Trucks carrying shipping containers wait in line to enter a shipping berth at the Port of Oakland in Oakland, California. The U.S. trade defict rose to the third highest level ever in August.


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Trucks carrying shipping containers wait in line to enter a shipping berth at the Port of Oakland in Oakland, California. The U.S. trade defict rose to the third highest level ever in August.

The numbers: The U.S. trade deficit climbed almost 6% in August to $67.1 billion and hit the third highest level on record, reflecting an ongoing struggle by American exporters to recover all the ground lost in the early stages of the coronavirus pandemic.

Economists polled by MarketWatch has forecast a $66.7 billion trade gap.



chart, line chart, histogram


What happened: Imports of foreign goods and services rose 3.2% in August to $239 billion, the U.S. Census Bureau said Tuesday.

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Exports increased a smaller 2.2% to $171.9 billion.

Imports have rebounded faster than exports, largely reflecting a stronger recovery in the U.S. economy compared to many of its trading partners. Imports are just 3% below prepandemic levels.

Exports, on the other hand, are about 18% lower compared to the last month before the pandemic. Disruptions in global supply chains and weaker demand overseas have hindered the ability of U.S. exporters to recover all the sales lost early in the pandemic.

The U.S. is also exporting fewer services tied to travel and tourism with so few people around the world flying and visiting other countries. Typically the U.S. runs a large surplus in services because its one of the most frequented travel destinations in the world.

Read: Consumer confidence surges to highest level of coronavirus era

The trade gap in goods with China, meanwhile, fell to $26.4 billion in August from $28.3 billion in the prior month. The deficit with China is running about 18% lower in 2020 compared to 2019 owing to coronavirus disruptions and U.S. tariffs.

The big picture: A larger trade deficit subtracts

WASHINGTON, Oct 5 (Reuters)U.S. services industry activity picked up in September, pulling above a level that prevailed before the COVID-19 pandemic struck the nation, amid increases in new orders and employment.

The Institute for Supply Management (ISM) said on Monday its non-manufacturing activity index rose to a reading of 57.8 last month from 56.9 in August. That put the index just above its 57.3 level in February.

A reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of U.S. economic activity. Economists polled by Reuters had forecast the index slipping to 56.0 in September.

The improvement in services industry activity fits in with expectations for a record rebound in economic growth in the third quarter after a historic plunge in gross domestic product in the April-June period. The economy got a boost over the summer from fiscal stimulus.

Growth has, however, shifted into low gear as businesses exhaust government loans to help them with expenses like wages and funding for a weekly unemployment subsidy for millions runs out. New coronavirus cases are rising, with a surge expected in the fall, which could lead to some restrictions being imposed on businesses in the services sector.

The ISM reported last week that factory activity slowed in September as new orders retreated from a more than 16-1/2-year high. The government reported on Friday the economy added 661,000 jobs in September, the fewest since the jobs recovery started in May, after creating 1.489 million in August.

The ISM survey’s measure of new orders for the services industry increased to a reading of 61.5 in September after dropping to 56.8 in August. But backlog orders and exports orders fell last month. The survey’s index of services industry employment rebounded to 51.8 from a reading of

What a week it has been for Bed Bath & Beyond  (BBBY) – Get Report. Shares are up about 40% so far, helped along by the stock’s 33% gain on Thursday.

The move came after the company delivered better-than-expected earnings.

The struggling retailer generated non-GAAP earnings of 50 cents a share, easily beating expectations by 79 cents. Revenue of $2.69 billion sank just 1.1% year over year and beat expectations by $70 million.

The impressive results weren’t contained to just the headline numbers. Comp-store sales growth of 6% breezed past estimates looking for a 2.1% contraction.

Bed Bath & Beyond also increased its gross margins – which topped expectations – while also generating positive free cash flow, cutting down its gross debt and boosting liquidity.

Given the struggle the stock has faced, it’s no wonder to see it popping higher now. It looks like Wedbush was right with its pre-earnings call. But what now? 

Trading Bed Bath & Beyond Stock

Daily chart of Bed Bath & Beyond stock.

Daily chart of Bed Bath & Beyond stock.

This week’s rally has ignited a very important move in Bed Bath & Beyond stock. Not only is it catapulting the share price over the 200-week moving average, but it’s reclaiming the $17.50 mark.

Reclaiming $17.50 is more significant to me than the 200-week moving average. This was a notable support level in years past, but after breaking down in 2018, it became stiff resistance in 2019 and 2020.

Then the coronavirus came along, which clearly crushed the stock. After recouping its losses off the lows, Bed Bath & Beyond stock had put together a sturdy rally that’s now becoming explosive.

From here, bulls need to see the $17.50 mark become support. That is necessary for the long-term technicals to shift in its favor. It

(RTTNews) – Treasuries moved to the downside during trading on Wednesday, more than offsetting the modest strength seen in the previous session.

Bond prices climbed off their worst levels in afternoon trading but remained in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.2 basis points to 0.677 percent.

The weakness among treasuries came following the release of some upbeat U.S. economic data, including a report from payroll processor ADP showing private sector employment surged up by more than expected in the month of September.

ADP said private sector employment spiked by 749,000 jobs in September after jumping by an upwardly revised 481,000 jobs in August.

Economists had expected employment to increase by 650,000 jobs compared to the addition of 428,000 jobs originally reported for the previous month.

The National Association of Realtors also released a report showing pending home sales jumped to a record high in the month of August.

NAR said its pending home sales index spiked by 8.8 percent to 132.8 in August after surging up by 5.9 percent to 122.1 in July. Economists had expected pending home sales to increase by 3.2 percent.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

Traders were also reacting to comments from Treasury Secretary Steven Mnuchin, who said he is “hopeful” about reaching an agreement with House Speaker Nancy Pelosi on a new coronavirus stimulus bill.

“I say we’re going to give it one more serious try to get this done and I think we’re hopeful that we can get something done,” Mnuchin said during the Delivering Alpha conference presented by CNBC and Institutional Investor. “I think there

By Fergal Smith

TORONTO (Reuters) – The Canadian dollar edged lower against its U.S. counterpart on Tuesday as oil prices fell and investors waited for the currency to extend this month’s decline before stepping in to buy it, with the loonie sticking to its recent trading range.

The loonie <CAD=> was trading 0.1% lower at 1.3381 to the greenback, or 74.73 U.S. cents, having matched intraday Friday’s 7-week low at 1.3418. The currency has fallen 2.5% this month as rising coronavirus cases in some parts of the world spooked financial markets.

“Client feedback suggests that there should be some decent U.S. dollar selling activity if we go north of 1.35, which should cap it,” said Simon Côté, managing director, risk management solutions, National Bank Financial. “There will have to be some decent risk-off sentiment for the dollar to go higher than that.”

Canada runs a current account deficit and is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital.

U.S. crude oil futures <CLc1> settled 3.2% lower at $39.29 a barrel on worries about the outlook for fuel demand as Europe and the United States grappled with a surge in new coronavirus infections.

Producer prices in Canada rose by 0.3% in August from July on higher prices for primary non-ferrous metal products, Statistics Canada said. Still, prices were down 2.3% compared to the same month last year.

Canada’s GDP data for July is due on Wednesday, which could help guide expectations about the strength of economic recovery.

Canadian government bond yields eased across a flatter curve, with the 10-year dipping 1.1 basis points to 0.538%.

(Reporting by Fergal Smith; Editing by Nick Zieminski and Alistair Bell)

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