The first day of trading in 2005 started with a bang but quickly fizzled as mixed economic reports brought U.S. markets back to earth. Canadian markets are closed Monday for the New Year’s holiday.

At midday, the Dow Jones Industrial Average was up 6.62 points or 0.06% to 10789.63 after rising as much as 84.38 points soon after the bell. The Standard & Poor’s 500-stock index fell 3.49 or 0.29% 1210.54 and the technology-heavy Nasdaq Composite Index fell 0.64% or 13.82 points to 2161.62.

U.S stocks were up sharply after the opening bell as the price of oil fell and Wal-Mart Stores Inc., the world’s biggest retailer, raised its preliminary estimate for December sales.

Wal-Mart rose 2.08% to $53.92 after it said sales rose 3% last month at U.S. stores open at least a year — higher than its forecast a week ago.

Meanwhile, light, sweet crude traded at US$41.55 a barrel in electronic trade on the New York Mercantile Exchange — down US$2 from Thursday’s close. Prices fell on milder U.S. winter weather and expectations of increased output from Canada and North Sea.

But some mixed economic data overshadowed the upbeat news from Wal-Mart and about oil. The Institute for Supply Management said growth at U.S. factories rose in December. The index of national manufacturing activity came in at 58.6 in December from 57.8 in November, above analysts’ median forecast of 58.1.

But U.S. construction spending fell unexpectedly by 0.4% in November, as a cooling in residential construction overpowered a small rise in public spending, a government report showed on Monday. The report from the Commerce Department said the drop was the first since January 2004 and worse than expectations of a 0.4% gain.

Hopes are high that the next 12 months will bring solid economic growth to the U.S., according to a survey by The Wall Street Journal, and traders seemed more than ready to carry the baton from the year-end rally into January.

Overseas, Asian-Pacific stock markets ended mostly higher Monday on the first trading day of 2005, as many investors stayed on the sidelines awaiting direction from Wall Street. Markets remained closed in Japan, New Zealand, Australia and Thailand for holidays.

Hong Kong shares ended flat, with many investors staying away from blue chips in the absence of fresh incentives and focusing instead on speculative stocks. The blue-chip Hang Seng Index edged up 0.05%, to 14237.42 points.

European markets rose slightly Monday in midday trading amid the release of positive economic data from Germany and France. London markets were closed for a holiday. In Frankfurt, shares climbed 1.2% to 4307.55, comfortably surpassing the 2004 year-high at 4272.18, amid a report saying German employment rose 0.3%.