Stocks Recover, but Finish Lower

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Due to deteriorating economic conditions, Centex (CTX) says it will suspend its regular quarterly cash dividend, consistent with its strategy of conserving capital and building liquidity during this difficult business environment.

Biogen Idec (BIIB) says its Phase II trial of baminercept in rheumatoid arthritis patients who have had an inadequate response to conventional therapy with a disease-modifying antirheumatic drug (DMARD) did not meet its primary endpoint or any of the pre-specified secondary endpoints. Biogen Idec has decided to discontinue development of the compound in rheumatoid arthritis.

In U.S. economic news Friday, the trade deficit narrowed to $59.1 billion in August from $61.3 billion in July, in line with market expectations. Exports fell $3.4 billion to $164.7 billion, while imports dropped $5.5 billion to $223.9 billion. The export decline was split between automotive parts (mostly to Canada and Mexico as North American production declines), which balances a similar decline in automotive imports. Imports of oil dropped sharply, by $6.1 billion, as prices plummeted. The non-petroleum deficit widened to $22.6 billion from $29.3 billion in July.

"Although the total was in line with expectations, the weak exports are a warning that a stronger dollar and weaker overseas economies will come back to hurt the U.S. economy," says S&P senior economist Beth Ann Bovino.

U.S. import prices plunged 3.0% in September while export prices fell 1.0%. Markets expected -2.5% and -0.4%, respectively. Petroleum import prices declined 9.0% last month, though they are still up a hefty 47% over last year. Excluding petroleum, import prices were down 0.9% but are up 6.5% over last year.

Import prices are up a solid 14.5% over last year, while export prices are up 6.8%. Agricultural exports edged down 0.3% in September, after plunging 9.6% in August. Agricultural exports are still up 19.5% year-over-year.

Ben Steverman and David Bogoslaw contributed to this article.

McCormack is senior producer for BusinessWeek.com's Investing channel . Andrews is managing editor of the Investing Channel for BusinessWeek.com .