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US stock market daily report (February 08, 2013, Friday)

Contributed by Millennium Traders

Winter Storm Nemo could bring a blizzard of potentially historic proportion for more than 50 million Americans located in northeast I-95 corridor from Pennsylvania to Maine this weekend, with a potential for more than two feet of snow and winds of up to 65 mph making travel, virtually impossible. As with all emergencies it is best to have a fully charged cell phone and laptop and, use them sparingly in the event you do lose power. Residents in the path of the storm rushed to stock up on food, bottled water, batteries, canned goods, shovels and other supplies ahead of what could be a long, cold and very snowy, weekend. For all emergencies, its best to have on hand battery-powered radio and flashlights. Forecasters are saying this could be one for the record books. "This one doesn't come along every day. This is going to be a dangerous winter storm," said Alan Dunham, meteorologist for the National Weather Service in Taunton, Mass. "Wherever you need to get to, get there by Friday afternoon and don't plan on leaving." As of 10:10 am ET Friday, more than 4,000 flights for Thursday, Friday and Saturday had been cancelled. Travelers with canceled flights should rebook immediately. Domestic air carriers are offering to waive change fees, which regularly cost as much as $150 for domestic flights and $250 for international. JetBlue is currently waiving ticket change and cancellation fees for travel scheduled on February 8 through the 10th in affected cities; United Airlines is currently waiving change fees for travel on February 8 and February 9. If you must be out on the roads, make sure your gas tank is full and stock your vehicle with emergency supplies in case you get stuck in the snow - water, blankets, a flashlight, snack food and a shovel plus, dress in several layers of lightweight clothing. Cat litter in the trunk of your car or bed of your truck can provide traction for a freshly dug-out vehicle, if you by chance get stuck in the snow. Forecasters say, this storm is the real deal, “This is definitely the strongest, highest snow-producing storm we’ve seen this year,” says David Manning, a meteorologist with the National Weather Service. In addition to the threat of bad roads and power outages from the snow and wind, communities could face flooding from coastal storm surges. “Heed the advice of your local emergency folks,” he says. “Stay in and wait for conditions to improve.”

New York Attorney General Eric Schniederman is looking at potential misconduct by the three major credit-ratings firms McGraw-Hill (MHP), owner of Standard & Poor’s Ratings Services, Moody’s (MCO) and Fitch Ratings. Subpoenas have been issued for all three agencies.

The U.S. Commerce Department reported on Friday that the U.S. trade deficit fell nearly 21% in December to $38.5 billion, marking the biggest drop in four years, as exports rose and imports softened. A surge in U.S. oil exports, a plunge in petroleum imports and an increase in commercial jets being exported, led the decline. In December, U.S. exports rose 2.1% to $186.4 billion, while imports declined 2.7% to $224.9 billion. The U.S. exported a record $11.6 billion in petroleum products while crude imports fell to the smallest amount seen since 1997. The rising production of crude and refined oil in the U.S. is a result of new technologies that allow companies to extract previously inaccessible fuel in large rock formations. The U.S. deficit fell with most of the nation's biggest trading partners during December. The trading gap with China decreased to $24.5 billion from $29 billion in November, while the deficit with the European Union fell sharply to $8.7 billion from $12.2 billion.

The U.S. Commerce Department reported on Friday that inventories at the wholesale level fell 0.1% in December. The drop could reflect a bigger drag on Q4 GDP from inventories however, a surprising narrowing of the trade deficit in December is expected to push Q4 GDP into positive territory. The inventory-to-sales ratio was 1.19 in December, unchanged from November.