Skip to Content
Investing Specialists

Decreased Oil and Gas Imports Keep Trade Deficit in Line

Additional oil and gas production and shipments explain why the trade deficit has held steady or even improved amid the recovery.

Mentioned: ,

With a thin economic news flow and earnings season coming to an end, the market basically treaded water for the week, with small caps continuing to be the one weak spot. The S&P 500, European indexes, and even emerging markets were virtually unchanged on the week. Bond rates were slightly lower at 2.62% on the 10-year U.S. Treasury bond versus the 2.7% range last week. My colleague David Sekera, Morningstar's director of corporate bond strategy, says that it's been quite awhile since rates have remained in such a small range for this long.

The trade report was the only one of consequence this week, and it was little changed and in line with expectations. Home price growth slowed, but not as much as I would have suspected. Weekly and monthly chain store data finally appeared to have made an important turn as better weather and better employment data have led to more spending. Federal budget data indicated that the federal budget deficit continued to decline. Surprisingly, tax collection did not do as well as employment data, suggesting that one of the two series is likely to be restated at some point.

Robert Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.