Stocks Edge Higher amid Dubai, Data

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Wall Street was also watching the retail sector as the holiday shopping season got underway. U.S. consumers spent significantly less per person at the start of the holiday season this weekend, dimming hopes for a retail comeback that would help propel the economy early in 2010. While shoppers turned out in force as early as U.S. Thanksgiving Day on Thursday, many said they had zeroed in on highly discounted items, would buy only what they needed and would walk out of a store if they did not find a good deal. "Shoppers proved this weekend that they were willing to open their wallets for a bargain," said National Retail Federation Chief Executive Tracy Mullin in a statement on Sunday. Retail chains "know they have their work cut out for them to keep people coming back through Christmas."

Store chains that may have done better than their peers include discount retailers like Wal-Mart (WMT) and Target (TGT), teen apparel retailers Aeropostale () and American Eagle Outfitters (AEO), and higher-end chains like Saks (SKS), analysts said. A clearer picture of retail performance will be seen when many U.S. retailers report November sales on Thursday.

Federal Reserve Chairman Ben Bernanke warned bluntly over the weekend that provisions in financial legislation before the House and Senate would "seriously impair" the Fed as it struggles to maintain financial and economic stability. In an article on the op-ed page of The Washington Post, Bernanke sharply criticized a Senate provision that he said "would strip the Fed of all its bank regulatory powers" and a House provision to repeal a 30-year-old law "to protect monetary policy from short-term political influence."

The Fed's jurisdiction to regulate banks has come under increasing attack in Congress in recent months, reflecting the anger of voters at the huge taxpayer costs of the bailout of Wall Street. Bernanke said that while some of the measures in response to the financial crisis were "distasteful and unfair," they were necessary.

In economic news Monday, the Chicago ISM manufacturing index rose to 56.1 in November, after climbing to a 13-month high at 54.2 in October, as the pace of expansion accelerated. The index compares to the 31.4 in March, the lowest since July 1980, and was at 33.6 a year ago. The employment component rose to 41.9 from 38.3 (33.4 last year). Even new orders extended gains, rising to 62.8 after surging 14 points to 61.4 in October (it was 29.2 last November). But prices paid also rose to 52.6 after slipping 3 points to 48.6 previously (54.1 a year ago).

U.K. GfK November consumer confidence unexpectedly fell to -17 from -13.

U.K. November Hometrack house prices rose 0.2%. The U.K. reported October new mortgage approvals of 57,000, while net lending rose by 900 million pounds.

Eurozone November harmonized index of consumer prices (HICP) was higher than expected at 0.6%, year-over-year, from -0.1% in October.

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