The markets fluctuated erratically throughout last week’s trading, posting triple-digit gains and losses. The week’s highs and lows were attributed to investors taking heed of economic news that influenced sentiment throughout the sessions. Adding to the indecision was news from Fed Chairman Ben Bernanke, who revealed plans on how to reduce the need of financial stimulus to the central banking system.

The nation’s trade deficit expanded at a much faster than expected pace in December, as the imbalance came in at $40.2B, an increase of more than 10% from November’s reading and the largest disparity in the past year. Expediting the surge was the country’s increased demand for oil and additional imports. Economists were looking for the deficit to come in around $36B.

Looking further inside the report, exports of goods and services advanced for an eighth consecutive month, increasing 3.3% to $142.7B, while imports expanded 4.8% during the month to, $182.9B. Imports were led by a 14.8% jump in oil imports, leading to its highest level since October 2008. By the end of 2009, the U.S. deficit receded to $380.7B, more than $315B less than the $695.9B deficit for 2008.

A report from the Labor Department revealed that the number of recently out-of-work employees declined more than anticipated for the week ending February 6. Surprisingly, initial claims fell by 43K claims to a seasonally adjusted rate of 440K. Economists were looking for first time filings to decline at much slower pace of 15K.

Initial claims are now approaching their lowest levels, which were established last December, when claims dropped to their lowest point in almost 18 months. Last week, the unemployment rate slipped to 9.7%. The drop was aided by the number of continuing claims decreasing by 80K, to an adjusted rate of 4.5M. Additionally, there were nearly 5.7M people receiving extended benefits in the week ending January 23, down from nearly 5.9M the previous week.

The National Association of Realtors announced last week that the median price, for existing homes sold, increased in 67 out of 151 metropolitan cities during the 4Q. With 40% of U.S. cities showing price improvements, that is a sharp improvement from the 3Q, when prices increased in only 20% of the cities surveyed. For the quarter, the national median price for existing homes was almost $173K, 4.1% below the same period from a year ago.

Representing nearly 70% of all economic activity, consumer spending plays a key role in the nation’s health. With that, the Commerce Department revealed that retail sales recorded a better-than-expected jump in January of 0.5%, the best showing since a 2% jump in November. The increase in sales was also better than the 0.3% gain economists had anticipated. Excluding the sale of autos, sales advanced at a 0.6% clip, also better than expected.

America’s businesses cut its stockpiles during December, as inventories were reduced by 0.2%, the opposite of the 0.2% gain economists were looking for. The back-and-forth between monthly gains and losses produced cautious behaviors from businesses as the strength and durability of the economic recovery remains in question. However, overall business sales rose 0.9% in December following a 2.4% surge in November.

The week ahead will see a handful of economic data released that will include the Treasury Budget, Building Permits, Import/Export Prices, Housing Starts, Capacity Utilization, Industrial Production, PPI, Leading Indicators and CPI reports for January.

The upcoming week will also include the Philadelphia Fed report for February, as well as weekly results for Initial Claims and Crude Inventories.

The DOW closed the week higher, climbing 86.91 points, or 0.9%, to close at 10,099.14. The S&P also finished the week in the green, rising 9.32 points, or 0.9%, ending at 1,075.50. The NASDAQ concluded the week up, gaining 42.46 points, or 1.9%, to close at 2,183.58.