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U.S. stocks swoon at session close

NEW YORK, Aug. 14 (UPI) -- U.S. stock indexes swooned at Tuesday's close, reacting to Wal-Mart lowering its earnings forecast and a futures broker's move to halt redemptions.

The Dow Jones industrial average plummeted 207.61 points, 1.57 percent, to close at 13,028.92. The Standard & Poor's 500 Index sank 20.38 points, or 1.82 percent, to finish at 1,426.54. The Nasdaq composite index closed down 43.12 points, 1.82 percent, to 2,499.12.

Wal-Mart Stores Inc. cut its year's earnings outlook, citing a sluggish economy. Sentinel Management Group, which oversees about $1.5 billion, said it won't satisfy client redemption requests, Moneywatch reported.

On the New York Stock Exchange, 453 stocks rose and 2,910 declined on a listed volume of 3.77 billion shares.

The 10-year note was up $2.50 for every $1,000 invested, yielding 4.734 percent.

The dollar was at 117.70 yen, from 118.53 yen. The euro was at $1.3537, from $1.3696.

In Japan, the Nikkei 225 index added 44.56 points, 0.27 percent, to close at 16,844.61. Britain's FTSE 100 Index gained 0.3 percent to 6,236.40.

U.S. trade gap shrinks in June

WASHINGTON, Aug. 14 (UPI) -- The U.S. trade gap for goods and services in June fell to $58.1 billion from $59.2 billion the previous month, the U.S. Commerce Department reported Tuesday.

The amount consumed just more than 5 percent of the gross domestic product, the department's Bureau of the Census said in a news release.

The petroleum deficit dropped to $23.4 billion in June from $23.8 billion in May while the trade deficit on non-petroleum products rose to $42.3 billion in June from $42.2 billion the previous month.

The trade deficit with China increased to $21.2 billion in June from $20 billion in May. A lower month-over-month deficit was reported with OPEC, $9.9 billion from $11 billion, the bureau reported.

In June, the goods deficit decreased $1 billion from May to $67.5 billion and the services surplus was virtually unchanged at $9.4 billion.

The goods and services deficit for June was down $6.4 billion from June 2006. Exports were up $13.5 billion, or 11.2 percent, and imports were up $7.1 billion, or 3.8 percent.

New Zealand to enter space race

WELLINGTON, New Zealand, Aug. 14 (UPI) -- Commercial space rockets may be shooting up from down under before long if a New Zealand venture company finds its way.

Rocket Lab Ltd. announced Tuesday it will start launching 17-foot carbon-fiber rockets spaceward in September 2008, The Dominion Post in Wellington, New Zealand, reported. The company, started by Peter Beck and Mark Rocket -- yes, that's his legal name -- is looking to capitalize on the growing commercial demand for space access.

Rocket Lab's Atea, or "space" missiles will carry scientific payloads but also cremated human remains.

"I believe New Zealand has a golden opportunity to be a space industry leader in the Southern Hemisphere," Rocket said.

Economic Development Minister Trevor Mallard said he first thought the project was a joke but now praises the New Zealand entrepreneurs for "reaching for the sky," the newspaper said.

Peruvian llamas to be guinea pigs

SOUTH ST. PAUL, Minn., Aug. 14 (UPI) -- A U.S. chip-maker has won a contract to implant radiation-detecting sensors in 1,000 llamas living near nuclear power plants in Peru.

The International Atomic Energy Agency has hired Digital Angel of South St. Paul, Minn., to tag the llamas and provide two readers to monitor them, the Minneapolis Star Tribune reported Tuesday. Digital Angel, which recently was obtained by Applied Digital of Florida through a stock swap, is better known for putting tracking chips in pets, cattle and fish.

Getting those chips in the llamas could be tricky, the newspaper noted, since animal experts say the woolly beasts of burden, weighing up to 500 pounds, are known to spit and bite. Llamas have a reputation for being quick learners and are "extremely curious and alert."