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|  | DECEMBER 30, 2005 04:42 PM
Stocks Finish 2005 LowerTrading was thin in the last session of the year, as a flat Treasury yield curve sparked economic worries. Profit-taking set the tone amid slow newsStocks ended the year lower on Friday as a flat Treasury yield curve raised concerns about a weaker economy in 2006. Trading was predictably slow, with profit-taking setting the tone amid a shortage of news, says Standard & Poor's MarketScope. The Dow Jones industrial average finished down for the year for the first time since 2002, falling 67.32 points on the day to 10,717.5. The broader Standard & Poor's 500 index dipped 61.3 points to 1,248.29. The tech-heavy Nasdaq composite index was down 12.84 points to 2,205.32. The markets will be closed on Monday in observance of New Year's Day. No major economic reports came out Friday. However, the new year is set for a running start, with key data next week including the December employment report and the Federal Open Market Committee minutes to the Dec. 13 meeting. Traders are also bracing for reports on construction spending, factory orders and the ISM manufacturing index. M&A activity continued Friday, as a group led by Citigroup (C ) reportedly won the right to buy a stake in China's Guangdong Development Bank. Also on the M&A front, oilfield surveying and drilling company Omni Energy Services (OMNI ) agreed to acquire Preheat Inc. for $16 million in cash, the issuance of 900,000 Omni shares and $4 million in buyer promissory notes. Among companies in the news, Intel (INTC ) announced a major overhaul of its corporate and product branding. The move was designed to symbolize the chip maker's transformation into a supplier for products beyond personal computers. Technology training outfit Learning Tree International (LTRE ) says it sees fourth-quarter revenue of about $35.5 million, a 2% decline from the same period in 2004, and expects to report a loss from operations of about $400,000 to $600,000. The company says its fiscal year 2005 results were adversely affected by non-recurring lease expenses of about $800,000. Floral giant FTD Group (FTD ) said its consumer business segment experienced a decrease of about 4% in total orders during the 2005 Christmas season. The company cut its fiscal year 2005 revenue target to about $460 million but kept its income targets and earnings per share estimates. Semiconductor equipment maker Amtech Systems (ASYS ) posted a fourth-quarter loss of 37 cents, vs. $1.11, on 28% higher revenue. Broadband provider Globetel Communications (GTE ) was up on a deal to install $600 million of wireless communications networks in 30 cities throughout Russia. Software outfit netGuru (NGRU ) gained after approving a cash distribution of 85 cents a share to stockholders of record Jan. 17, 2006. In the energy markets, February West Texas Intermediate crude oil was up 72 cents to $61.04 despite higher temperatures and adequate supplies. Oil averaged just shy of $57 in 2005, and was up 37% vs. 2004, says Action Economics. European markets finished lower. In London, the Financial Times-Stock Exchange 100 index ended down 19.50 points to 5,618.8. Germany's DAX index fell 50.32 points to 5,408.26. In Paris, the CAC 40 index was down 57.70 points to 4,715.23 Asian markets also fell. Japan's Nikkei 225 index lost 232.77 points to 16,111.43. In Hong Kong, the Hang Seng index fell 169.16 points to 14,876.43. Korea's KOSPI index was closed after finishing at a new record high Thursday of 1379.37. Treasury Market Prices for 10-year Treasury notes finished lower at 100-29/32 with a yield of 4.39%, while 30-year bonds were down at 112-15/32 for a yield of 4.54%. The two- and 10-year yield curve was narrowly inverted, causing stocks to fret about a potential recession, says S&P MarketScope. An empty data calendar and an early close added to thin trading conditions, says Action Economics.  By Marc Hogan Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
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