Santa Gives Stocks a Small Christmas Gift

Wall Street received a small Christmas gift, as a quiet day of trading ended with stocks mildly positive to put an end to a five-day losing streak.

While it may not have been the Santa Claus rally some had hoped for, the indexes closed with gains that pushed the Dow Jones Industrial Average and the Standard & Poor's 500 up just more than 0.5 percent, while the Nasdaq tech gauge also finished higher.

Moderating economic data helped, as government reports on durable goods and consumer spending weren't as bad as economists had expected, even though employment numbers continued to tumble.

Volume was light during a shortened trading day as financials and transports nudged the market higher.

Delta Air Lines was among the companies in the industry that benefited as oil prices fell another $1.50 or more to below $38 a barrel.

Retailers also gained on the last shopping day before Christmas, with Wal-Mart rising on news that it had settled a class action lawsuit from employees who claimed they were forced to work off the clock, and Target shares moving up as well.

Investors also were cheered by a reporting showing that mortgage applications surged to a five-year high last week thanks to plunging mortgage rates, which in turn triggered a sharp rise in refinancing activity.

Leading Dow components included General Motors and Caterpillar along with large banks such as Citigroup and Bank of America .

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Elsewhere, Sherwin-Williams shares posted a nice gain after the Wall Street Journal reported that the paint maker was increasing its 2009 dividend. Cost controls and overseas gains were cited as reasons the company was able to overcome the economic troubles.

AstraZeneca shares slipped after the company said the Food and Drug Administration requested more information about the company's schizophrenia drug Seroquel.

And in the small-cap space, AmeriSafe shares surged after the insurer replaced FirstFed Financial in the S&P SmallCap 600.

In other corporate news, coffee shop chain Starbucks has informed employees it won't guarantee matching contributions to their 401(k) retirement plans next year.

The New York Stock Exchange closed at 1 pm New York time and will be closed on Thursday, Christmas Day.

Asian markets closed mixed in thin trade with sessions shortened by holidays as well while in Europe markets were lower. European markets will also close earlier due to the Christmas break.

European stock exchanges will be closed on Thursday, Christmas Day, and Friday, Boxing Day.

© 2008 CNBC.com