Martha Stewart

WASHINGTON — The U.S. trade deficit narrowed in October to its lowest point of the year as Americans bought fewer foreign cars and imported less oil. Exports of American-made autos also fell.

The Commerce Department said Friday that the trade deficit shrank 1.6 percent to $43.5 billion. That’s down from September’s revised figure of $44.2 billion.

Exports slipped 0.8 percent to $179.2 billion, the first drop after three months of gains. Shipments of industrial supplies, such as natural gas, copper and chemicals, fell. Exports of autos and agricultural goods also dropped.

Imports fell 1 percent to $222.6 billion, reflecting a 5 percent decline in oil imports. The average price of imported oil fell for the fifth straight month to $98.84, the lowest since March.

A lower deficit can boost economic growth because it typically means foreign nations are buying more American goods. That can lead to more jobs and higher consumer spending, which fuels 70 percent of economic activity.

Penney buying stake in Stewart LivingNEW YORK — Department store chain J.C. Penney Co. is looking to homemaking doyenne Martha Stewart as it takes one big step toward re-imagining itself under its new CEO, a former Apple Inc. executive.“A store has to be much more than the products that it sells,” Ron Johnson said in an interview with The Associated Press. “That’s what I learned from Apple. You can really move product and change and enrich people’s lives.”Johnson, who married hot gadget offerings with helpful expertise when his team created Apple’s highly successful stores, says he wants to do the same for the home goods arena, which has been a big challenge for Penney.Plano, Tex.-based Penney announced Wednesday that it is spending $38.5 million for a 16.6 percent stake in Martha Stewart Living Omnimedia Inc. Starting in February 2013, mini-Martha Stewart shops will appear inside most of J.C. Penney stores, and the companies will operate a joint website.

Costco profit improves slightlyPORTLAND, Ore. — Costco Wholesale Corp. sacrificed on profitability for the sake of popularity in its fiscal first quarter.The wholesale club operator reported Thursday that its profit rose 2.6 percent for the period, despite significantly stronger revenue gains, as it kept prices low on gas, food and other products to gain market share at the sacrifice of its margins.The company, based in Issaquah, Wash., has performed better than many retailers during the down economy as consumers turned to its clubs for deals on everyday necessities like food and household basics. Costco has long-recognized that it must continue to hold that low-price position to maintain its popularity even if it means pressure on its margins from time to time.

McDonald’s sales rises 7.4% in Nov.OAK BROOK, Ill. — McDonald’s says a key revenue figure rose 7.4 percent in November on strong demand from markets around the world.In the U.S., sales were boosted by strong demand for breakfast items and the seasonal addition of the peppermint mocha to its coffee menu.The world’s largest fast-food chain says revenue at stores open at least 13 months rose 6.5 percent in both the U.S. and Europe and 8.1 percent in Asia Pacific, the MiddleEast and Africa.