International Trade Balance, Producer Price Index - Economic Preview, Monday, August 13, 2007 4:58:18 PM

Monday the stock market was given an early boost by the release of retail sales data that edged above expectations. However, the boost was erased by close, as the Dow closed down 3 points. Data on business inventories for June was also released; however it did little to move the markets. The data, which measures the dollar amount of inventories held by wholesalers, manufacturers, and retailers, showed an increase of 0.4 percent. This matched analysts` expectations.

On Tuesday, two major reports will present investors with significant amounts of data. At 8:30 am ET information on international trade balance, which measures difference between imports and exports of goods and services, will be released. Trade balance can be especially important to currency traders, as the information can affect the value of the dollar in the foreign exchange market. Analysts expect the U.S. trade deficit for June to widen to $61.0 billion from May`s deficit of $60.0 billion.

Also scheduled for release at 8:30 am ET is the producer price index, a measure of the average price level for capital and consumer goods received by producers. It is considered an indicator of both consumer price inflation and profits. If the prices paid to manufactures increase, businesses are forced to make some tough decisions regarding prices. For July, analysts` expect to see a 0.1 percent increase. Prices decreased in June by 0.2 percent.

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