U.S. markets end winning streak
NEW YORK, Oct. 14 (UPI) -- U.S. markets slid Thursday after the Labor Department said first-time unemployment claims rose in the week ending Oct. 9.
Initial claims for benefits rose by 13,000 after falling for six of the past seven weeks. The four-week rolling average for claims came to 459,000, up 2,250 from a week ago.
In a separate report, the Bureau of Economic Analysis said the U.S. trade deficit rose to $46.3 billion in August over a revised $42.6 billion in July. The trade deficit with China grew sharply from $25.9 billion to $28 billion.
After four consecutive days in the black, the Dow Jones industrial average closed with a drop of 1.51 points, or 0.01 percent, to 11,094.57.
The Standard & Poor's 500 index lost 4.29 points, or 0.36 percent, to 1,173.81. The Nasdaq composite index lost 5.85, or 0.24 percent, to 2,435.38.
On the New York Stock Exchange, 1,203 stocks advanced and 1,773 declined on a volume of 4 billion shares traded.
The benchmark 10-year Treasury note fell 25/32 to yield 2.511 percent.
The euro rose to $1.4086 compared to Wednesday's $1.3957. Against the yen, the dollar fell to 81.45 yen from Wednesday's 81.77 yen.
In Tokyo, the Nikkei 225 index added 1.91 percent, 180.00, to 9,583.51.
In London, the FTSE 100 index lost 0.35 percent, 20.14, to 5,727.21.
U.S., China trade imbalance hits record
WASHINGTON, Oct. 14 (UPI) -- The U.S. trade deficit rose in August and hit a record high with China, the Bureau of Economic Analysis said Thursday.
After falling in July, the deficit rose to $46.3 billion in the month, an increase over a revised $42.6 billion in July, but not as high as the $49.8 billion trading deficit posted in June.
The report, which put the month's deficit against China at $28 billion, triggered a White House pledge to continue pressuring China to allow its currency to appreciate to make U.S. goods and services more affordable in China's growing economy. White House press secretary Robert Gibbs said President Obama would continue to put pressure on China to "live up to its obligations."
The U.S. trade deficit with China in July was $25.9 billion.
Against all nations and the Organization of Petroleum Exporting Countries, exports and imports both rose, as international business continues to pick up steam from a summer of 2009 trough. For the month, exports rose by $300 million to $153.8 billion. Imports rose by $4.1 billion compared with July to $200.2 billion.
The deficit in trading for goods rose by $3.9 billion from a month ago to $59 billion, while the surplus in service businesses rose by $100 million to $12.6 billion.
In his remarks from the White House, Gibbs said, "We've seen over the past many months that the United States cannot drive world demand anymore ... That's why the president pledged to increase our exports and we're working to do that."
Walmart focuses on sustainable farming
BENTONVILLE, Ark., Oct. 14 (UPI) -- U.S. retail giant Walmart said Thursday it was revamping its grocery business to concentrate more on locally grown foods and sustainable farming practices.
The implications could be enormous, as Walmart is not only the world's largest grocery store, but it is a trend-setter across the retail industry, The New York Times reported.
When Walmart says, "jump," producers are also likely to ask, "how high?"
In a program revealed Thursday, Walmart said it would double the amount of food purchases from within their home states to 9 percent. Thatd falls well short of its 30 percent target for its Canadian stores, but is still a significant push, the Times said.
The discount retailer said it would spend more than $1 billion on produce storage and transportation to bring fresher foods to customers faster, reduce waste and increase shelf-life and profits. The company said it would also begin an educational program for growers and collecting information on chemical use and other farming practices to allow consumers and store buyers to chose produce from environmentally friendly sources.
"Grocery is more than half of Walmart's business. Yet only four of our 39 public sustainability goals address food," said Walmart President and Chief Executive Officer Michael Duke in a statement prepared for a meeting Thursday morning.
On the other hand, "No other retailer has the ability to make more of a difference than Walmart," he said.
Pilipinas Shell charged with smuggling
MANILA, Philippines, Oct. 14 (UPI) -- Customs officials in the Philippines have filed a complaint against Pilipinas Shell for allegedly dodging import duties and taxes by mislabeling its products.
The allegations amount to a charge of smuggling petroleum products imported from August 2005 through May 2009, the Philippines Daily Inquirer.net reported Thursday.
Customs Commissioner Angelito Alvarez said, "This complaint should prove that the Aquino administration respects no sacred cow. This is by far the biggest complaint we have filed and the first multinational company at that."
The complaint names country tax manager Nigel Avila, four company employees and three customs brokers.
On 52 occasions, the complaint says, Pilipinas Shell "intentionally" labeled unlabeled gasoline as tetrapropylene to avoid paying excise taxes.
The penalty for fraudulently misclassified imports is 800 percent of the amount owed the government, the newspaper said. In the charges, the government is seeking about $553 million.
