Stocks are gaining after the government issued a mixed trade report

The Commerce Department said the trade deficit declined 3.5 percent to $30.7 billion in August, as imports fell on lower oil demand. Economists expected the deficit to rise to $33 billion, or 3.3 percent from July’s level, which was the highest in six months.

Exports of goods and services edged up 0.2 percent, an encouraging sign that the global economy is strengthening. But the decline in imports shows that domestic consumption is still weak.

Investors were also keeping a close watch on the dollar Friday, which recovered some of its recent losses after Federal Reserve Chairman Ben Bernanke reassured markets that the U.S. central bank will be able to wind down in its extraordinary stimulus measures when the time is right. His comments Thursday night calmed some of investors’ fears about inflation, which can be triggered by a falling dollar. The rebound in the greenback weighed on oil, gold and other commodities.

The market’s seven-month rally was put firmly back on track this week after two down weeks. Going into Friday, the Dow is up 300 points, or 3.2 percent, for the week. S&P 500 index is up 3.9 percent.

In early trading, the Dow rose 24.79, or 0.3 percent, to 9,811.66. The Standard & Poor’s 500 index added 2.08, or 0.2 percent, to 1,067.56, while the Nasdaq composite index rose 9.08, or 0.4 percent, to 2,133.01.

Yesterday’s Top Performing Small Cap Stock:

Muscle Flex Inc. (Pink Sheets: MFLI) was a eXpressIR top performer yesterday closing up over 8% on trading volume of 542,791 shares.

Muscle Flex Inc. announced that it is developing a strong portfolio of “Water” related products to market using its direct response, online ecommerce and traditional retail methods. Muscle Flex regards “Water” as potentially the most important ingredient in maintaining a healthy lifestyle and it is estimated that as much as 75% of Americans do not drink enough good clean water. Water consumption is one of Danny Alex’s, the CEO and Founder of Muscle Flex Inc., 30 fitness rules to living a better and healthier lifestyle. Muscle Flex is developing a several water related products and will be included as one of Muscle Flex’s main product categories.

Biomedical Technology Solutions Holdings, Inc. (OTCBB: BMTL) was another eXpressIR top performer yesterday closing up over 8% on trading volume of 29,415 shares.

Biomedical Technology Solutions Holdings, Inc announced an agreement with Med Pro Associates of Colorado to serve as a non-exclusive independent sales and marketing representative to solicit sales, obtain orders and provide sales and marketing support for the company’s Demolizer II within the U.S.

Med Pro Associates, based in Idaho Springs, Colorado, is one of the nation’s largest independent representation firms specializing in the healthcare industry. They represent leading manufacturers in a sales support role through all distribution channels and market into the hospital, long term care and dental markets. The Med Pro team of highly qualified, professional field sales representatives provides national coverage and specializes in both medical equipment and disposable devices.

Today’s eXpressIR Hot Stock to Watch:

TIE Technologies, Inc. (Pink Sheets: TTCS)

TIE Technologies is a systems integration and telecommunications company focused on engineering and delivering innovative solutions for user’s needs and challenges within the dynamic global voice, video and data communications markets. The company offers managed IT and telecommunication services to solve a myriad of complex client requirements. Services and solutions include applications hosting, managed hosting, complex event systems management services, content delivery networks, data broadcasting networks, and voice and video solutions.