Stocks Opened Slightly Lower, Trade Deficit Widened

U.S. stocks opened slightly lower on Wednesday, amid a new reading on the U.S. trade balance for the end of the year that showed the trade deficit had ballooned to the highest level in a decade. The Dow Jones Industrial Average lately fell 20.85 points, or 0.08%, to 25,785.78. The S&P 500 was down 6.53 points, or 0.23%, to 2,783.12. The Nasdaq Composite declined 18.65 points, or 0.25%, to 7,557.72.

Major oil benchmarks took to split paths for a second straight session Wednesday, with U.S.-focused WTI easing on a fresh sign of rising U.S. inventories. West Texas Intermediate crude for April delivery fell 39 cents, or 0.7%, to $56.17 a barrel. May Brent tacked on 2 cents, or less than 0.1%, to $65.88 a barrel.

The U.S. trade deficit surged to a 10-year high in 2018. The Commerce Department said on Wednesday that an 18.8 percent jump in the trade deficit in December had contributed to the $621.0 billion shortfall last year. The 2018 deficit was the largest since 2008 and followed a $552.3 billion gap in 2017.

Abercrombie & Fitch predicted annual sales above Wall Street forecasts on Wednesday, as new store designs and a broader selection of apparel resonate better with shoppers. Sales at Abercrombie & Fitch stores open for at least a year rose 3 percent in the fourth quarter ended Feb. 2. Net sales in 2019 should range between $3.66 billion and $3.73 billion.