This trade deficit news certainly points in the direction that the U.S. economy is slowing.
The two reports don't constitute a change of direction for the economy, but they are negative enough to make investors feel more cautious about the recovery.
It's a step in the right direction to perhaps halt some of the excess volatility in electronically traded stocks.
The market is very much gripped by earnings' warnings. That's why the market seems to be lacking a clear direction on the upside.