Import Export Prices, U.S. Treasury Budget - Economic Preview, Thursday, August 09, 2007 5:15:09 PM

Thursday was yet another triple-digit day for the market, with the Dow closing down 387 points as the credit squeeze propelled investors to shed equities in search of safer havens for their money. This morning data on jobless claims was released, showing they edged higher by 7,000 for the week of August 4th to 316,000. Analysts had expected an increase of 3,000. However, the news was overshadowed by the credit squeeze, and financial markets showed no reaction to the report.

At 8:30 am ET import and export prices will be made public. Changes in import and export prices are one way to gauge inflation here and abroad. Investors may also get information on how the weak U.S. dollar is affecting both imports and exports. Import prices increased 1.0 percent in June, a pace they expect to match in July.

Shortly after import and export prices, the RBC CASH (Consumer Attitudes and Spending by Household) Index will be released. The index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal financial situations, savings, and confidence to make large investments.

At 2:00 pm ET the U.S. Treasury will unveil its budget for July. The budget has a direct relationship with Treasury securities. The higher the deficit, the more Treasury notes and bonds the government must sell to finance its operation, and vice-versa. The report also gives insight the state of the U.S. economy by way of the government`s tax receipts. In June, the U.S. Treasury monthly budget recorded a $27.5 billion surplus. Analysts expect a moderate deficit of $34 billion for July.

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