Market diary.

The markets failed to produce a hoped-for "Santa Claus rally" for the week ended Dec. 28, with the Dow Jones Industrial Average falling 37.4 points to 10,796.3, the Standard & Poor's 500 off 4.62 points to 1258.17 and the Nasdaq down 2.72 to 2228.94. Blue-chips suffered their steepest decline in two months in response to long-term bond yields falling below shorter-term Treasury securities, a sign that bond investors believe that the economy will slow. Meanwhile, the LABJ 200 index was down 0.1 percent to 123.74, with 110 companies advancing, 80 declining and 10 unchanged. Insurance firms led gainers, up 2 percent, and energy and utility companies led losers, down 2.8 percent. Eleven local stocks hit new 52-week highs, including Monrovia-based surgical products maker Staar Surgical Co., which soared more than 47 percent on Dec. 23 after announcing U.S. regulatory approval for its Myopic Visian ICL lens. Los Angeles-based Arden Realty Inc. ended the week down 4 percent on unusually high volume of almost 22 million shares. That followed the Dec. 22 announcement that GE Commercial Finance Real Estate was acquiring the company, Southern California's largest office landlord, for about $3.2 billion in cash and the assumption of $1.6 billion of debt.