YAHOO [BRIEFING.COM]: Stocks were able to muster a modest advance in a shortened session ahead of the Christmas holiday. Action was choppy, while trading volume was extremely light.

All 10 economic sectors were able to register gains this session.

Financials fared the best, posting a 1.9% advance with the help of large-cap banks. Financials traded as a laggard in the prior session and are still the worst performing sector this week, falling 4.2% since last week's close.

Energy mustered a 0.3% advance amid falling oil prices. Oil traded as low as $36.63 per barrel, but was recently indicated roughly 3.7% lower near $37.50 per barrel.

Oil's slide came in the face of a surprise inventory draw, which suggests stronger-than-expected demand for the commodity. The Department of Energy reported that oil inventories for the week ending Dec. 19 decreased by 3.10 million barrels. The consensus called for a build of 500,000 barrels.

Automobile manufacturers (-0.5%) had a mixed showing after digesting word that privately-held Chyrsler is responding to economic headwinds by slashing costs. The move is aimed at showing the U.S. government that it can still be viable in March 2009, which is when the government will begin calling its loans if automakers are failing.

Retailers had a strong showing, and outperformed the broader market. The group closed 1.1% higher, though without leadership from industry giant Wal-Mart (WMT 55.44, +0.15). Wal-Mart has agreed to pay up to $640 million to settle 63 lawsuits regarding wage payment, according to The Wall Street Journal.

Retailers are the latest industry group seeking government assistance amid challenging economic conditions. The Wall Street Journal reported that the country's largest retail trade association asked for a series of sales tax-exempt shopping days to be added to an economic stimulus package. Such a move could bolster consumer spending.

Consumer spending remains weak amid stiff macro headwinds and challenging labor conditions. Personal consumption expenditures dropped 0.6% in November. Meanwhile, personal income declined 0.2%, as wages and salaries dropped 0.1%.

Jobless claims for the week ending Dec. 20 jumped 30,000 to 586,000, topping the consensus estimate of 558,000. That moved the four-week moving average up 13,750 to 558,000. Continuing claims dipped 17,000 to 4.37 million, but the four-week moving average increased 93,000 to 4.32 million. The claims data continue to reflect weak labor market conditions and portend another decline in December nonfarm payrolls.

In other economic data, November durables goods new orders fell a less-than-forecast 1.0%. However, recent data trends reflect weak demand.

Trading volume was extremely light. Only some 400 million shares were exchanged on the NYSE during a shortened session ahead of the Dec. 25 holiday. U.S. stock markets will be closed tomorrow, but will reopen for a full trading day on Friday, Dec. 26.

German markets were actually closed this session in observance of the Christmas holiday. Britain's FTSE had a shortened session, and will be closed for the rest of the week. The FTSE shed 0.9% amid weakness in energy and pharmaceutical stocks. France's CAC closed 0.4% lower in a shortened session, which is also its last session of the week.

In Asia, the MSCI Asia-Pacific Index closed 1.1% lower. Japan's Nikkei slipped 2.4% with ongoing weakness in automakers. Hong Kong's Hang Seng closed 0.3% lower, slipping for the fourth consecutive session as investors pushed back ahead of a long weekend. Hong Kong's market will reopen Monday, Dec. 29.DJ30 +48.99 NASDAQ +3.36 SP500 +4.99 NASDAQ Adv/Vol/Dec 1407/506 mln/1258 NYSE Adv/Vol/Dec 1787/404 mln/1221