Toronto stocks posted modest gains in relatively light trading Monday, kicking off the holiday-shortened week. The S&P/TSX composite index closed up 21.61 points at 8,135.43.

Monday’s economic news was lacklustre. Statistics Canada reported that retail sales edged up just 0.2% to $26.4 billion in October after falling 1% in September. The government agency said lower gasoline prices depressed overall retail sales growth, while retailers of big-ticket items such as auto dealers and household furniture and appliance stores posted essentially flat sales. Food retailers were the exception, posting a 1.9% gain.

Advancing issues outpaced decliners 714 to 581 on the TSX where just over 200 million shares changed hands.

Eight of the TSX’s 10 sector gauges finished in positive territory led by a 1.1% gain in healthcare. Information technology and consumer discretionary closed in the red.

Tech bellwether Nortel Networks ended the session down 1.8% at $5.49 but Research in Motion climbed 2.3% to $61.42 ahead of its latest quarterly report set for release after the closing bell.

CIBC agreed to pay US$80 million to settle civil charges that it aided and abetted Enron’s financial fraud. Under a separate agreement, the bank also faces restrictions on its financial dealings with U.S. public companies. CIBC shares added 0.9% to close at $64.05.

Elsewhere, Magna International slid 2.1% to $105.05 after the auto parts supplier said late Friday it would incur charges totaling 28¢ in the fourth quarter including 18¢ from its of its Decoma International subsidiary and 10¢ a share from higher corporate tax rates that go into effect in 2004. Magna said it still expects to report a profit of $1.50 to $1.70 a share for the fourth quarter, but that the forecast excludes any potential effects of an accounting-related impairment review.

The S&P/TSX venture composite index of small cap issues slipped 1.81 points to 1,662.13.

On Wall Street, the blue-chip Dow and the broader S&P 500 index both hit fresh 19-month highs in quiet trading on Monday.

General Motors’ stock jumped more than 4%, leading the Dow higher, as investors welcomed the completion of GM’s long-awaited split-off of Hughes Electronics to News Corp.

Traders showed resilience after the U.S. security alert was raised to orange, the second-highest level, on Sunday.

The Dow Jones industrial average rose 59.78 points to 10,338.00, its highest close since May 17, 2002. The S&P 500 Index added 4.27 points to 1,092.94, its highest finish since May 23, 2002.

The tech-heavy Nasdaq composite index shrugged off earlier losses and gained 4.78 points, or 0.25%, to 1,955.80.

Bay Street will close early Wednesday and remain closed through the weekend in observance of the Christmas and Boxing Day holidays. Wall Street will also close early on Wednesday, Christmas Eve, but reopen for another abbreviated session on Friday.

The Canadian dollar rose to 75.19¢ versus the U.S. dollar, up from Friday’s 74.77¢ close. The greenback fell after the United States raised its terror alert rating.