BUSINESS BRIEFS
Trade deficit falls to its lowest point in 2 years
Associated Press
WASHINGTON — The U.S. trade deficit declined during the third quarter to the lowest level in two years, raising hopes that the country's trade troubles could be easing.
The Commerce Department reported yesterday that the current account trade deficit fell by 5.5 percent to $178.5 billion in the July-September quarter. That was a better-than-expected showing and the smallest current account imbalance since a $173.4 billion deficit in the third quarter of 2005.
The current account is the most comprehensive measure of trade because it includes not only trade in products and services but also investment flows between countries.
The current account deficit had set all-time highs for five consecutive years but has declined for two consecutive quarters, prompting economists to predict that the deficit will finally start to decline this year.
OIL PRICES DECLINE ON OUTPUT FEARS
NEW YORK — Oil prices fell yesterday when an OPEC official said the cartel may boost output, calming concerns about tight supplies.
"I would not exclude the possibility of increasing production if the market wants it," said Chakib Khelil, Algeria's oil minister, who becomes president of the Organization of Petroleum Exporting Countries on Jan. 1.
Light sweet crude for January delivery fell 64 cents to settle at $90.63 a barrel on the New York Mercantile Exchange.
Data released by oil tanker-tracker Petrologistics shows OPEC oil exports have already risen by about 400,000 barrels a day, analysts said.
As the oil supply picture is improving, concerns about weakening demand are rising. Analysts said Friday's government report that consumer inflation jumped in November by the largest amount in more than two years continues to weigh on markets.
"Worries about economic growth have re-emerged," said Addison Armstrong, director of exchange traded markets at TFS Energy Futures LLC in Stamford, Conn.
HOME BUILDERS STILL PESSIMISTIC
WASHINGTON — A December reading of U.S. home builders' sentiment remained at a record low for the third straight month.
The National Association of Home Builders said yesterday its housing market index, which gauges builders' perceptions of conditions and expectations for home sales over the next six months, came in at 19 in December. The number was at the lowest level since the index began in January 1985.
Index readings higher than 50 indicate positive sentiment. The seasonally adjusted index has been below 50 since May 2006, and declined for eight straight months this year, and has been unchanged since October.
Tighter lending standards, rising defaults among borrowers with weak credit and worries about the housing market's future have meant fewer buyers.
SOFTWARE LAUNCH LIFTS ADOBE PROFIT
SAN FRANCISCO — Adobe Systems Inc. announced yesterday that fourth-quarter profit surged 21 percent, beating Wall Street expectations, thanks to record revenue from the company's biggest-ever software launch.
Net income for the three months ending Nov. 30 was $222.2 million, or 38 cents a share, compared with $183.2 million, or 30 cents per share, in the year-ago period.
Fourth-quarter sales were a record $911.2 million, up 34 percent from a year ago and easily exceeding the company's own estimates of $860 million to $890 million.
The San Jose-based software maker also said yesterday it would repurchase an additional 30 million shares for a total buyback of 50 million shares. The company, which announced the buyback in April, had repurchased 17.7 million shares through November, leaving about 587.9 million outstanding.
This year brought the most significant product launch in Adobe's 25-year history. In June, it unveiled Visual Communicator 3 software, which is designed to create video broadcasts.
Make a difference. Donate to The Advertiser Christmas Fund.
