U.S. AVERAGES

The weakness in tech stocks, larger than anticipated U.S. trade deficit and rising oil prices led investors to sell stocks in the first hour of trading. The sell-off was also exacerbated by the fall in dollar against major currencies in Europe and Asia. Gold trades up 40 cents to $448.20 per ounce.

Latest read on consumer confidence showed declined from 96.5 in June, its best level, to 92.7 according to a survey from University of Michigan.

Last night Dell met 2Q earnings of 38 cents estimates but missed the revenue $13.4 billion fell short of estimates of $13.7 billion. The stocks at is trading 9%. Cree research reported 4Q profit of 27 cents vs. 28 cents a year ago on 9% rise in revenue.

Airlines shares continue to slide as oil trades near new peak. The shares of AMR Corp are down 20 cents and Delta Air are down 10 cents. Verizon shares are trading close to its 52-week low.

British Airways has halted all flights from London as some of its staff has joined a dispute between Gate Gourmet, its caterer and its workforce. Approximately 70,000 people reportedly have been stranded at the Heathrow Airport. The company expects the flight disorganization to continue for days even though more than half the striking staff has returned to work.


ECONOMIC REPORT

The unedited transcript of the U.S. trade deficit news report is provided below. The entire report can be read on the site www.doc.gov.


U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES

June 2005

Goods and Services

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total June exports of $106.8 billion and imports of $165.6 billion resulted in a goods and services deficit of $58.8 billion, $3.4 billion more than the $55.4 billion in May, revised. June exports were virtually unchanged from May, and June imports were $3.4 billion more than May imports of $162.2 billion.

In June, the goods deficit increased $3.3 billion from May to $64.0 billion, and the services surplus decreased $0.1 billion to $5.2 billion. Exports of goods were virtually unchanged at $74.5 billion, and imports of goods increased $3.2 billion to $138.5 billion. Exports of services increased $0.1 billion to $32.4 billion, and imports of services increased $0.2 billion to $27.1 billion.

In June, the goods and services deficit was up $3.9 billion from June 2004. Exports were up $12.6 billion, or 13.4 percent, and imports were up $16.5 billion, or 11.1 percent.

Goods

The May to June change in exports of goods reflected decreases in foods, feeds, and beverages ($0.4 billion); consumer goods ($0.2 billion); and industrial supplies and materials ($0.2 billion). Increases occurred in capital goods ($0.6 billion); other goods ($0.1 billion); and automotive vehicles, parts, and engines ($0.1 billion).

The May to June change in imports of goods reflected increases in industrial supplies and materials ($2.2 billion); capital goods ($1.2 billion); and consumer goods ($0.1 billion). Decreases occurred in automotive vehicles, parts, and engines ($0.2 billion) and other goods ($0.1 billion). Foods, feeds, and beverages were virtually unchanged.

The June 2004 to June 2005 change in exports of goods reflected increases in capital goods ($3.3 billion); industrial supplies and materials ($3.1 billion); consumer goods ($1.0 billion); automotive vehicles, parts, and engines ($0.6 billion); foods, feeds, and beverages ($0.5 billion); and other goods ($0.1 billion).