Sales data showed U.S. consumers spent more this holiday season. (Gary Malerba/Associated Press)

U.S. stock markets closed with a modest gain in light Monday trading on reports that consumers spent more in the weeks leading up to Christmas.

The Dow Jones Industrial Average gained 27 points to close at 10,547.1 The S&P 500 index climbed 1.3 points to 1127.78. The Nasdaq composite index rose 5.39 points to 2291.08.

Canadian markets were closed Monday. They'll reopen Tuesday.

Data from MasterCard Advisors' SpendingPulse, which tracks all forms of payment, showed retail sales rose 3.6 per cent from Nov. 1 through Christmas Eve. Last year, sales fell 2.3 per cent.

Factoring out the extra shopping day between U.S. Thanksgiving and Christmas, the gain was about one per cent.

Consumer spending accounts for more than two-thirds of economic activity, so is closely watched as an indicator of how robustly the economy is emerging from recession.

Commodities rose as the U.S. dollar slumped against major world currencies. Crude oil futures gained 72 cents to settle at $78.77 US a barrel — their highest level since Nov. 19. Natural gas futures jumped 34 cents to $5.99 US.

The Canadian dollar was up more than two-thirds of a cent to 95.96 cents US in Monday afternoon trading.

With files from The Associated Press