The first week of 2005 was no fun for equities, even if the holiday shopping season turned out a little better than expected. The Nasdaq Composite lost ground every day of the week, and the Dow Jones Industrial Average and S&P 500 were in the red every day but Thursday. More troublesome for the Nasdaq, it reached a lower intraday low than the previous day all five days and a lower high every day but Friday when the index eclipsed Thursday's best by a whole 0.09 points before stumbling to another loss. For the week, the Nasdaq lost 4% to 2088.61, the Dow lost 1.7% to 10,603.96 and the S&P dropped 2.1% to 1186.19. Suggesting tax-related selling is a big factor, many of the best performing industries in 2004 have led the early 2005 downturn. Coal, steel, agrochemicals and homebuilders were all among the biggest losers for the first four trading days of the year after posting gains of 40% to 70% last year, according to Morningstar. Only four of the 130 or so-odd industries tracked by Morningstar had gains. The only winners were managed care, led by Medco Health Solutions ( MHS), discount stores, led by Wal-Mart ( WMT), property insurers, led by AIG ( AIG), and specialty retailers led by Walgreen's ( WAG). Of course, amid Friday's losses, retailers including Wal-Mart sold off. As for economic news, Friday's December payrolls report ended up being a snoozer as it did nothing more than confirm that the Goldilocks economy remains on track. While the Labor Department said employers added 157,000 jobs last month, slightly less than the average forecast, the shortfall was about equal to revisions to prior months that added 34,000 jobs. The bond market yawned and the yield on the 10-year Treasury note finished the week at 4.28%. As RealMoney.com contributor Tony Crescenzi sagely observed, the current rate of payroll growth is about enough to keep the economy on track and consumers happy while not prompting the Federal Reserve to go crazy with interest rate hikes.