With the growth in December, the value of construction spending came in at a record $1.12 trillion for 2005, which is up 8.9 percent from the $1.03 trillion spent in 2004.

As mentioned above, spending on private construction saw notable growth, increasing by 1.1 percent in December to a seasonally adjusted annual rate of $904.3 billion. Residential construction increased by 1 percent while non-residential construction rose by 1.3 percent.

Public construction spending also increased in December, rising by 0.7 percent to a seasonally adjusted annual rate of $256.3 billion. The growth came as a 1.5 percent increase in education construction spending more than offset a 0.6 percent decrease in highway construction spending.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks ended mostly lower on volatile trade, reflecting heavy corporate news release and growing uncertainty over the direction of U.S. interest rates. A 13% drop of Google’s shares overnight also weighed on sentiment. The Nikkei ended its winning streak, falling 1% for the first time after six strong sessions. South Korea’s Kospi extended losses to drop 1.7%, Hong Kong’s Hang Seng fell 0.3%, while Singapore Straits Times gained 0.8%.

European stocks closed higher, lifted by bid speculations involving Lloyds TSB and German ProSieben SAT 1, as well as positive news for U.K. satellite broadcaster BSkyB. The German DAX 30 rose 0.9%, the French CACV 40 gained 1%, and London’s FTSE 100 climbed 0.7%.

OIL, METALS, CURRENCIES

Crude oil prices slightly declined on OPEC’s decision to keep production levels. The slide was limited by concerns over Iran’s standoff with the West. Light sweet crude for March delivery fell 12 cents to $67.80 a barrel. Heating oil lost 1 cent to $1.8406 a gallon, while gasoline inched down to $1.7970. Natural gas gained 17 cents to $9.487 per 1,000 cubic feet. London Brent lost 2 cents to $65.97.

European gold prices declined on strengthening dollar. In London gold traded at the fixed price of $567.20 bid per troy ounce, down from $569. In Zurich the precious metal traded at $567.60, down from $569.80. In Hong Kong gold rose $7.45 to close at $567.05. Silver opened at $9.76, down from $9.82.

The U.S. dollar grew stronger against other major currencies. The euro was quoted at $1.2110, down from $1.2160. The dollar bought 117.68 yen, up from 117.23. The British pound stood at $1.7757, down from $1.7805.

EARNINGS NEWS

Boeing Co (BA: chart), aircraft manufacturer, reported Q4 net income of 58 cents a share, more than double from 23 cents a share in the same period a year ago. Total revenue advanced more than 6%. Analysts forecast earnings of 44 cents a share before items. Boeing announced 2006 revenue would be about $60 billion, below previous estimates as a result of a previously disclosed accounting change in its commercial airplane business.

Pinnacle West Capital Corp (PNW: chart), electricity provider, reported Q4 earnings of 22 cents a share, down from a year-earlier profit of 37 cents a share, topping analyst estimate of 15 cents a share. Revenue fell in Q4 to $691.7 million from $713.3 million in the same period a year ago. On a continuing operations basis, the company earned 24 cents a share in Q4.

Unitrin Inc (UTR: chart), insurance company, reported Q4 earnings of $1.26 a share, up from $1.07 a share in the year-ago period. Revenue dropped to $755.9 million from last year''s $759.7 million. The results include a tax benefit of $14 million, a favorable loss adjustment reserve development of $13.9 million and $4.2 million in higher catastrophe losses.

JetBlue Airways Cor (JBLU: chart), airline company, reported a Q4 net loss of 25 cents a share, down from a profit of 1 cent a share in the year earlier period on record-high fuel prices and a tough revenue environment, compounded by the impact of two hurricanes, missing analyst forecasts of a net loss of 16 cents a share. If not for two unusual items, the company said net loss would have been 19 cents a share in Q4.

Duke Energy, (DUK: chart), energy company, posted Q4 net income of 63 cents a share, up vs. 36 cents a share in the year ago period, beating analyst estimate for earnings of 36 cents a share. Earnings from continuing operations were 43 cents a share, compared to 30 cents a share.

American Electric Power, (AEP: chart), utility company, reported a Q4 loss of 38 cents a share, down from a profit of 45 cents a share a year-ago. On an ongoing basis, the company generated quarterly earnings of 29 cents a share, down from the previous year''s 42 cents, beating on that basis analyst views for earnings of 25 cents a share. American Electric stated it incurred $261 million in one-time charges during the 2005 quarter. Revenue dropped to $2.9 billion from $3.5 billion.

Devon Energy Corp, (DVN: chart), oil and gas company, reported Q4 net earnings of $2.14 a share, up from $1.35 a share in the same period last year, missing analyst estimate of $2.29 a share. On an adjusted basis, the company announced it would have earned $2.33 a share for Q4. Revenue reached nearly $3.22 billion from $2.47 billion. On a combined basis, daily oil, gas and natural-gas liquids output averaged 619,000 barrels of oil equivalent in 2005, down 10% from company''s 2004 average daily production as a result of hurricane-related disruptions.

Greater Bay Bancorp, (GBBK: chart), financial-services holding company, announced that Q4 net income increased 8.2% to 39 cents a share, up from 33 cents in the year-ago. Revenue from interest on loans in the quarter dropped 0.5% to $67.7 million from $68.1 million. Annualized return on equity for the quarter advanced to 13.5% from 12.69% while return on assets was 1.27% against 1.19%.

Time Warner Inc, (TWX: chart), media company, reported Q4 net income of 29 cents a share, up from 24 cents in the year-ago period on 7% revenue growth. On an adjusted basis, the latest quarter''s profit was 25 cents a share, topping analysts view for earnings of 22 cents a share. Time Warner''s operating income came in at $2.2 billion, up from the previous year''s $1.6 billion.