Stock Market Update

The S&P 500 futures are down 18 points and are trading 0.4% below fair value, the Nasdaq 100 futures are down 116 points and are trading 0.7% below fair value, and the Dow Jones Industrial Average futures are down 57 points and are trading 0.2% below fair value.

The July Trade Balance Report showed a widening in the deficit to $78.8 billion (Briefing.com consensus -$78.5 billion) from an upwardly revised $73.0 billion (from -$73.1 billion) in June. The widening was the result of imports being $7.1 billion more than June imports and exports being only $1.3 billion more than June exports.

The key takeaway from the report is the uptick in imports. While that will act as a drag on Q3 GDP forecasts, the increase in imports will nonetheless be construed as a reassuring demand signal for the U.S. economy.