Stocks waver, with hard-to-read signs on economy

Stocks waver, with hard-to-read signs on economy

NEW YORK (AP) — The stock market is wavering between small gains and losses early today as investors are pulled between positive news about the U.S. economy and signs of trouble in China and Europe.

The Dow Jones industrial average was up three points at 13,171 after the first half-hour of trading. The Standard & Poor’s 500 rose less than a point to 1,402 and the Nasdaq composite index edged up five to 3,016.

In the U.S., the government reported that the trade deficit fell to the lowest level in 18 months. The trade deficit is the gap between how much the U.S. imports and the smaller amount that it exports. A lower deficit is generally considered good for the economy. In June, the U.S. paid less for the oil it brought in and enjoyed higher sales of its autos, pharmaceuticals and industrial machinery overseas.

But a troubling trend was buried in the report: Exports to China dropped more than 4 percent. That’s a concern because China, the world’s second-largest economy, has been a major driver of the global economy throughout the recession and its aftermath, even as other countries stumbled. And U.S. exports weren’t the only sign that China can’t keep greasing the skids forever. Separately, China reported that growth slowed in auto sales and factory output.