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U.S. stocks trend down at midday

NEW YORK, Dec. 31 (UPI) -- U.S. stock indexes were down in midday trading Monday but were poised to finish the year in the black despite the turmoil in the credit markets.

The Dow Jones industrial average was off 0.68 percent, down 90.56 points, at 13,275.31. The Nasdaq composite index dipped 23.07 points, 0.86 percent, to 2.651.39, while the Standard & Poor's 500 lost 10.18 points, 0.69 percent, to 1,468.31.

For the year, Dow industrials were up by more than 7 percent, with a 35 percent jump for Honeywell International helping to neutralize a 47 percent tumble at Citigroup. The S&P 500 was up more than 4 percent for 2007, while the Nasdaq grew 11 percent.

"This has been a decent year for stocks," Robert Pavlik, chief investment officer at Oaktree Asset Management, told The Wall Street Journal. "(Not) everyone has been impacted by the subprime crisis."

On the New York Stock Exchange, 1,014 stocks advanced and 2,075 declined.

The 10-year U.S. Treasury note yielded 4.033 percent.

The euro traded at $1.4589 from $1.4716 late Friday, while the dollar was at 111.83 yen from 112.64 yen Friday.

Britain's FTSE 100 Index dropped 0.3 percent to 6,456.90.

The market in Japan was closed.

Home sales rise slightly in November

WASHINGTON, Dec. 31 (UPI) -- Existing-home sales rose slightly in November, indicating the U.S. housing market is stabilizing slightly, the National Association of Realtors said Monday.

Total sales of single-family homes, town homes, condominiums and co-ops, rose 0.4 percent to a seasonally adjusted annual rate of 5 million units in November from a revised 4.98 million in October, the association said in a news release. The figures were about 20 percent below the 6.25 million level in November 2006.

The market seems to be stabilizing after months of turbulence, said Lawrence Yun, NAR chief economist

"Near term, existing-home sales should continue to hover in a narrow range, just as they have since September, and that's good news because it'll be a further sign that the housing market is stabilizing," Yun said.

The national median price for all housing types was $210,200 in November, down 3.3 percent from the November 2006 $217,000 median price.

Total inventory of existing homes fell 3.6 percent in November to 4.27 million for sale.

"Inventory is still high, and further reduction in prices may be required in some areas to induce buyers back into the market," Yun said.

Champagne prices to bubble up in '08

SCARSDALE, N.Y., Dec. 31 (UPI) -- People wanting to taste the good life, such as sipping pricey Champagne, might to do so now as U.S. analysts say luxury items will cost more in 2008.

Observers said they expect prices for luxury goods imported from Europe to rise next year, USA Today reported Monday. That $100 bottle of sparkling wine from the Champagne region in France, for example, could cost between 5 percent and 30 percent more in 2008.

"This is the last call. I don't think we'll see Champagne at these prices for a long time to come, if ever," Jeff Zacharia, president of national retailer Zachy's Wine and Liquor in Scarsdale, N.Y., told USA Today.

One reason is the U.S. dollar's decline against the euro. Also, demand is high worldwide and the Champagne region in France is maxed out production-wise.

U.S. retailers resisted price increases in 2007, USA Today reported, but absorbing losses are likely to end early next year.

"January, February and March are often the times when (holiday) discounts come off. It is also the time when Champagne houses set prices for the coming year," Sam Heitner, director of the Office of Champagne U.S.A., the industry's promotional arm, said in the USA Today article.

Trading flat in Aussie shares

SYDNEY, Dec. 31 (UPI) -- The Australian share market ended 2007 in negative territory after a flat day of trading ahead of the New Year holiday.

The All Ordinaries Index closed out Monday's shortened session at 6,241 points, with the ASX 200 down 0.1 at 6,3340.

Traders took some heart in the fact that, overall, the Australian market rose 11.8 percent for the year despite the U.S. sub-prime mortgage crisis wiping more than 20 percent off the major market indicators in the last two months of the year.

The major mining companies ended weaker, dragged down by profit taking in Fortescue metals, which dropped 11.45 percent after a massive gain last week to close at $6.61.

BHP Billiton dropped 32 cents to $35.39 and Riot Tinto dipped 4 cents to $118.12.

Gold stocks ended higher, buoyed by $14.50 jump in the price of spot gold to $841.40 an ounce.

The energy sector ended mixed, with Woodside Petroleum 3 cents lower at $44.43 and Santos up 6 cents to $12.44.

Bank share and retailers also ended mixed while the Australian dollar climbed to 88.05 U.S. cents on expectation of an interest rate rise early in 2008.