Update U.S. Stocks December 2010

The U.S. stocks closed mixed on Monday after a pre-Christmas session of lackluster trading due to the lack of economic news, but Nasdaq and S&P 500 hit new two-year highs.

President Barack Obama signed an 858-billion-dollar package on Friday, renewing the Bush-era tax cuts for another two years and also extending federal unemployment benefits through the end of 2011.

Some investors hope the tax cut will help boost spending as consumers feel better about their financial situation, while others doubt the deal can do much to stimulate the economy.

Meanwhile, the mood turned cautious after the market posted three straight weekly gains, and investors were normally reluctant to take big moves around Christmas.

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