Markets Shrug Off Reports

Financial markets shrugged off economic reports this week showing a sharp narrowing of the trade deficit and a slight increase in initial claims for jobless benefits.

The Commerce Department said the U.S. international trade deficit in goods and services narrowed to a smaller-than-expected $8.508 billion in March as exports and imports set records for the second consecutive month.

March’s overall trade deficit narrowed 19.3 percent, following a revised 14.6 percent decline in February’s deficit to $10.538 billion.

Exports of goods and services rose 4.1 percent to a record $76.479 billion in March, led by commercial aircraft, industrial hardware and consumer goods. Imports rose 1.2 percent to a record $84.987 billion.

The Labor Department said first-time jobless claims rose by just 5,000 to a seasonally adjusted 322,000 in the week ended May 17. That was close to analyst expectations of a 4,000 gain.

“It confirms the falling unemployment we’ve been seeing, and is going to worry the Fed,” said James Glassman, senior economist at Chase Securities Inc. in New York.