Trade Deficit Widened in January

Economic Overview - Pre-market indexes are showing declines, with the Dow down 414 points, S&P 500 down 71, Nasdaq down 326, and Russell 2000 down 32 points [1] - The European Central Bank (ECB) has lowered interest rates by 25 basis points, with the Deposit Facility now at +2.50%, indicating confidence in controlling inflation [2] - German bund yields increased by 30 basis points to around +2.85%, the highest since 1990, reflecting significant economic behavior in the EU [3] Labor Market Insights - Initial Jobless Claims for last week were reported at 221K, lower than the anticipated 235K, and down from the previous week's 242K, suggesting stability in the labor market [4] - Continuing Claims rose to 1.897 million, approaching the psychological level of 1.9 million, which may indicate concerns about the robustness of the U.S. labor market [5] Productivity and Costs - Q4 Productivity was revised up by 30 basis points to +1.5%, marking the ninth consecutive upward movement in U.S. productivity [6] - Unit Labor Costs were revised down to +2.2%, lower than previous quarters, indicating a favorable trend of increased productivity alongside reduced costs [6] Trade Balance - The U.S. Trade Deficit reached a record low of -$131.4 billion, exceeding expectations of -$128.7 billion, influenced by anticipated trade tariff changes [7] Market Expectations - Following positive earnings reports from Macy's, Burlington Stores, and Cracker Barrel, upcoming earnings from Broadcom and Costco are anticipated, along with data on Wholesale Inventories for January [8]