NEW YORK – The Dow Jones Industrial Average on Friday closed the year with a loss for the first time since 2002, pulling down the WWD Composite Stock Index.
WWD’s index fell 19.4 points from last week to close at 1,113.27, while the S&P 500 fell in sympathy, ending the year on a loss at 1,248.29, down 20.37 points from a week ago.
For many investors returns were lower in 2005. The year was affected, in part, by higher energy costs and a slowing economy. In the last week of 2005, the bond markets signaled a yield curve that inverted for the first time in five years, raising fears of a recession. While short-term interest rates that are higher than long-term ones isn’t a guarantee of a recession, in the past it has more often than not preceded an economic slowdown.
Most retailers increased their promotions on goods last week to clear inventory and make room for spring merchandise on the selling floors. And analysts continued to dissect the holiday season at retail. According to the eSpending report from Goldman Sachs, Nielsen/NetRatings and Harris Interactive, online holiday shoppers spent a total of $30.1 billion during the 2005 holiday season, up 30 percent from 2004.
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