* U.S. stocks rise in thin trade, Europe and Asia drop
* Oil slumps 9 pct on weakening global economic picture
* Dollar off after weak U.S. jobless, spending data
By Daniel Bases
NEW YORK, Dec 24 (Reuters) - One final hurrah, or gasp
given the grim global economic conditions, pushed U.S. stocks
to a positive close before the Christmas break on Wednesday,
but other markets fell, with crude oil slumping 9 percent on
the economic outlook.
Stocks in Europe and Asia fell in thin trading volumes, led
down by energy, pharmaceutical and automotive shares. European
and U.S. stock markets closed early.
U.S. economic data showed more weakness in consumer
spending, declining incomes, and a drop in durable goods orders
in November, while new claims for unemployment benefits rose to
a 26-year high last week.
The weak data drove down the price of crude oil, offsetting
a report that showed an unexpected decline in U.S. crude
stockpiles.
While grim, some of the U.S. data was not as bad as was
expected.
"We're certainly in a period where you are going to see
weak economic data and we will see that for awhile," said Tim
Ghriskey, chief investment officer of Solaris Asset Management
in Bedford Hills, New York. "But it is a financial system that
can recover with stocks that have some value."
The lower oil prices and bargain hunting boosted airline
stocks and retailers.
U.S. stock markets closed at 1 p.m. (1800 GMT). The Dow
Jones industrial average <> gained 48.91 points, or 0.58
percent, to 8,468.40. The Standard & Poor's 500 Index <.SPX>
rose 4.91 points, or 0.57 percent, to 868.07. The Nasdaq
Composite Index <> edged higher, up 3.36 points, or 0.22
percent, to 1,524.90.
The airline index <.XAL> rose 2 percent and the S&P index
of retailers <.RLX> gained about 1 percent.
U.S. automaker General Motors enjoyed a brief respite from
the selling, rising 8.3 percent to $3.25 <GM.N>. Year-to-date,
GM's stock is down 87 percent. U.S. automakers have been
crippled by the credit crisis that has forced them to take
$17.4 billion in emergency government funds.
EUROPE AND ASIA FALL
The pan-European FTSEurofirst 300 index <> ended 0.5
percent lower at 804.54 points.
On Wednesday, energy shares were the biggest drag on the
European index, as crude prices continued their recent
decline.
In U.S. trade, crude oil futures fell as the dreary
economic picture offset a report from the U.S. Energy
Information Administration showing weekly oil inventories rose.
In New York crude fell $3.63 to settle at $35.35 a barrel
<CLc1>.
Total <TOTF.PA>, BP <BP.L>, Royal Dutch Shell <RDSa.L>,
Repsol <REP.MC> and Statoil <STL.OL> were down between 1.5 and
2.3 percent.
Drug stocks also fell. AstraZeneca <AZN.L> lost more than 3
percent of its value
"There's not much Christmas cheer in the markets.... It's
been an extremely cheerless and very unrewarding experience
over the past year," said Mike Lenhoff, chief strategist at
Brewin Dolphin in London.
Stock markets in Germany, Finland, Switzerland, Sweden,
Spain, Italy and Austria were closed on Wednesday while London,
Paris, Amsterdam and Brussels bourses closed early. European
trade was due to resume on Monday.
Tokyo's benchmark Nikkei <> fell 234.83 points or 2.7
percent to close at 8,488.95.
Shares of Toyota Motor Corp <7203.T> fell 4 percent on
Wednesday after the World's largest automaker forecast its
first ever annual operating loss, blaming falling sales and a
crippling rise in the value of the yen. Rival Honda Motor Co
<7267.T> fell 5.7 percent.
MSCI world equity index <.MIWD00000PUS> fell 0.23 points or
0.1 percent to 219.88. MSCI's emerging markets stock index fell
<.MSCIEF> 2.12 points or 0.38 percent to 553.70.
In the credit markets the benchmark 10-year U.S. Treasury
down just 1/32 of a point in price, leaving the yield at 2.187
percent, just above a five-decade low of 2.04 percent hit last
week <US10YT=RR>.
New U.S. orders for long-lasting manufactured goods fell 1
percent in November, a less severe drop than the 3 percent
anticipated by economists. Meanwhile, U.S. consumers, the
backbone of the economy, cut spending for a fifth straight
month and incomes contracted, reflecting the strain of rising
unemployment.
The benchmark 10-year Japanese government bond yields
<JP10YT=RR> fell as low as 1.195 percent, the lowest since July
2005.
Euro zone government debt futures were closed Wednesday and
won't reopen until Monday.
In currency markets, the dollar weakened with the latest
U.S. economic data.
"I don't think we are going to have a major reassessment of
the U.S. economic situation based on today's data," said Daniel
Katzive, director of global foreign exchange at Credit Suisse
in New York. "All in all, the scenario remains pretty weak."
The dollar <.DXY> fell 0.28 percent against a basket of
major currencies. It was down 0.23 percent at 90.65 yen <JPY=>.
The euro rose 0.06 percent to $1.3970 <EUR=>.
The dollar was on track for its biggest monthly loss in at
least 10 years against a basket of major currencies.
Spot gold rose $6.95 an ounce or 0.83 percent to $845.50
<XAU=>.
(Additional reporting by Reuters bureaus around the world)
