The narrower trade deficit came as the value of exports rose while the value of imports fell. The report showed that exports rose 1.8 percent to $109.3 billion in November, while imports fell 1.1 percent to $173.5 billion.

The increase in the value of exports reflected a rise in exports of goods, particularly capital goods, consumer goods, and industrial supplies and materials. At the same time, imports of goods fell, reflecting decreases in imports of industrial supplies and materials and consumer goods.

Despite the decrease in November, the trade surplus for the first 11 months of 2005 came in at $661.8 billion compared to the annual record of $617.6 billion in 2004. Economists expect that the annual deficit for 2005 will top $700 billion.

Thursday morning, the Department of Labor released its report on initial jobless claims in the week ended January 7. The report showed that jobless claims increased compared to a significantly downwardly revised reading for the previous week.

The report showed the jobless claims rose to 309,000 from the previous week's revised figure of 292,000. Economists had been expecting jobless claims to come in at 325,000 compared to the 318,000 originally reported for the previous week.

The Labor Department also said that 4-week moving average fell to 311,500 from the previous week's revised average of 317,000. This marked the second consecutive decline for the moving average, which fell to a 5-month low.

The report also showed that continuing claims rose to 2.702 million in the week ended December 31 from the preceding week's revised level of 2.690 million.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks rallied on strong technology shares, lifted by analyst upgrades and corporate news. China’s Shanghai Composite was the outstanding leader among gainers, surging 1.3% to 1,226.704. The Nikkei hit a new five-year high of 0.5% to 16,445.19, followed by South Korea’s Kospi, up 0.6%, and Hong Kong’s Hang Seng rising for the eighth consecutive session with a gain of 0.4%.

European stocks were mostly lower at mid-day trading on weak telecom stocks, hurt by warning from France Telecom of worse-than-expected sales growth in 2006. the German DAX 30 fell 0.1%, the CAC 40 slipped 0.2%, while London’s FTSE 100 gained 0.1% on oil stocks, rising on the back of higher crude oil.

OIL, METALS, CURRENCIES

Crude oil prices neared a three-month high on supply concerns as tension over Iran’s nuclear ambitions increased. Light sweet crude for February delivery gained 67 cents to $64.61 a barrel. London Brent rose 76 cents to $62.93.

The U.S. dollar dropped against major currencies on speculation that trade deficit will stay near record highs. The euro was quoted at $1.2131, up from $1.2127. The dollar bought 113.75 yen, down from 114.15.

EARNINGS NEWS

LG.Philips LCD Co., (LPL: chart), reported that Q4 profit surged to 328 billion won (US$337 million; euro277 million), up from 35 billion won (US$36 million; euro30 million) from a year earlier on strong demand for liquid crystal displays used in televisions. The result was above analysts’ expectations of a net profit of 291.4 billion won (US$299 million; euro246 million).

RadioShack Corp, (RSH: chart), consumer electronics retailer, announced Q4 total sales of $1.67 billion versus total sales of $1.59 billion for Q4 in the year-ago period, an increase of 5%. RadioShack''s quarterly comparable store sales grew by 4%.

Fortune Diversified Industries Inc., (FFI: chart), telecommunications and human-resources consulting company, reported Q1 net income advanced 20% to 8 cents a share, up from 7 cents a share in the year-ago period on 45% higher revenue. The business-solutions segment, which includes the HR business, was particularly strong in the period.

Schiff Nutrition International Inc., (WNI: chart), producer of vitamins and nutritional supplements, reported that Q2 net income fell 56% to 6 cents a share, down from 13 cents in the year-ago period on 20% lower sales. Sales dropped to $35.5 million from $44.3 million. Sales fell as some private-label lines were discontinued and branded-product sales declined.

MGIC Investment Corp. (MTG: chart), mortgage insurance company, reported Q4 net income of $1.44 per share, up 3.6% from $1.39 in the same period last year. Q4 total revenues were $370.9 million, down 8.0 % from the comparable period last year. The decline in revenues resulted from a 8.2 % decrease in net premiums earned to $305.1 million. Net premiums written for the quarter were $316.7 million, down from $336.4 million in Q4 last year, a decrease of 5.9 %.

CORPORATE NEWS