All-time high trade gap overshadows bullish Intel outlookhttp://cbs.marketwatch.com/news/story.asp?guid=%7BC674BE5B%2D34B4%2D483D%2DB3E3%2D69F51E96B40D%7D&siteid=mktwNEW YORK (CBS.MW) - Stocks retreated Wednesday morning as news of a record high trade gap drew rising interest rates back to the foreground, overshadowing a strong earnings report and bullish outlook from chip giant Intel Corp.
"It's another blow, if you will, for lower interest rates or at least a stopping of this current rate cycle," said Paul Nolte, director of investments at Hinsdale Associates, who believes the market is still trying to figure out what's going to happen this year.
The Commerce Department reported Wednesday that the U.S. trade gap widened to a record $60.3 billion in November, sending the dollar sharply lower.
The Dow Jones Industrial Average ($INDU: news, chart, profile) was last down 42 points, or 0.4 percent, to 10,514 after rising as high as 10,575 in the opening minutes of trade.
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Meanwhile, a number of profit warnings surfaced, raising concerns about the outlook for fourth-quarter earnings as the reporting season kicks into gear.
...more...I can just hear that indignant tone: How dare the markets pay attention to that deficit number!
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