Ho, ho, ho: Stocks finish a little bit higher

NEW YORK -- Stocks finished slightly higher Wednesday in light trading during a holiday-shotened session that ended at 1 p.m. ET.

Preliminary figures showed the Dow Jones Industrial average finished up 48.99 points or 0.58% at 8,468.48; the S&P 500 stock index was up 4.99 points or 0.58% to 868.15; the Nasdaq composite index was up 3.36 points or 0.22% to 1,524.90.

The reaction to Wednesday's economic data was a shrug.

Early Wednesday, the Commerce Department said consumer spending dropped 0.6% in November, slightly less than analysts had expected. Americans' incomes fell a worse-than-expected 0.2%.

And the Labor Department said initial applications for unemployment benefits increased to a seasonally adjusted 586,000 last week.

The Commerce Department said durable goods orders fell 1% in November, not nearly as steep as the 3% decline economists had been expecting.

"We've got to get through this year — it's been crazy — and just start over," said Stephen Carl, principal and head of equity trading at The Williams Capital Group.

His wishlist for 2009: "I hope more shoes don't drop in January, and I really hope that come March that the (government bailout) money is able to do what the people giving the money expect. I hope the automakers don't need any more; I hope the plan comes to fruition."

With many investors on vacation during Christmas week, trading was light Wednesday.

On Tuesday, the Dow fell for a fifth straight session, finishing down 100 points, on discouraging reports that showed further deterioration in the housing market and the broader economy. Though the Dow is well off the multiyear lows it hit in mid-November, it is still down about 4.6% so far in December, which tends to be one of the best months for the market.

On Wednesday, advancing issues outnumbered decliners by about 5 to 4 on the New York Stock Exchange, where volume amounted to 296.8 million shares.

Bond prices, like stocks, were little changed. The yield on the benchmark 10-year Treasury note rose modestly to 2.18%.