Dec. 27 (Bloomberg) -- U.S. stocks gained as the price of oil slumped and figures from Wal-Mart Stores Inc. and Amazon.com Inc. indicated a pickup in holiday sales.

Crude oil next year will ``be less of a shock than it was this year,'' said Alan Gayle, senior investment strategist at Trusco Capital Management, which oversees $65 billion in Richmond, Virginia. That will ``help dampen some of that anxiety that energy costs'' will hurt spending.

Comcast Corp. rose after Barron's reported the shares may be undervalued. Sirius Satellite Radio Inc. advanced on faster-than- expected subscriber growth.

All three benchmark indexes are poised to close at three- year highs. The Standard & Poor's 500 Index added 2.40, or 0.2 percent, to 1212.53 as of 10:49 a.m. in New York, the Dow Jones Industrial Average increased 25.35, or 0.2 percent, to 10,852.47, while the Nasdaq Composite Index rose 6.21, or 0.3 percent, to 2166.83.

Ten stocks advanced for every nine that declined on the New York Stock Exchange. Some 222.1 million shares changed hands on the Big Board, 40 percent less than the same time a week ago.

Trading typically slows during the days between the Christmas holiday and the end of the year. Since 1994, the number of shares changing hands each day on the Big Board over that period was 24 percent below the daily average for the year.

The S&P 500, which last week closed at its highest since August 2001, has gained 8.8 percent in 2004. The Dow average, which is trading at a level not seen since June 2001, is up 3.9 percent this year, while the Nasdaq has gained 8.2 percent. It is now at its highest since June 2001.

Further Advances

This week may produce further advances if history is any guide. Since 1969, the S&P 500 has gained an average 1.7 percent during the last five trading days of the year and the first two of the New Year, according to the Stock Trader's Almanac.

The gains may extend into next month, according to Russ Koesterich, chief U.S. equity strategist for State Street Global Markets in Boston.

``January is normally the best month of the year. The reason for that is new money comes into the market,'' he said. The S&P 500 has climbed 2.2 percent on average in January over the last 20 years.

Crude oil for February delivery tumbled 5.4 percent to $41.80 a barrel in New York, extending last week's 5.1 percent decline. Prices are at the lowest since Dec. 14 on speculation that mild U.S. weather will cut demand for heating oil.

Wal-Mart Update

Wal-Mart, the world's largest retailer, rose 89 cents to $53.44. December sales at its U.S. stores open at least a year are increasing about 2 percent after shoppers last week rushed to complete their holiday buying, the company said. Wal-Mart also said sales of gift cards, which don't count toward revenue until they are used, increased ``significantly.''

Amazon.com climbed $2 to $40.93. The No. 1 Internet retailer said consumer electronics outsold books for the first time during the holiday season, resulting in its busiest holiday season.

Target Corp., the No. 2 U.S. discount chain, gained $1.58 to $52.08. Indexes of consumer-related shares in the S&P 500 had the biggest advances among the benchmark's 24 industry groups.

Comcast, Sirius

Comcast, the largest U.S. cable television operator, gained 80 cents to $32.35. The shares might be undervalued because some analysts and investors are overstating the threat posed by competition from telephone companies, Barron's reported. Comcast could be worth about $40 a share, Oakmark Funds analyst Kurt Funderburg told Barron's.

Sirius, the second-biggest pay-radio service, added 49 cents to $8.44. The company said it exceeded its year-end target of winning 1 million subscribers.

The advance in stocks was also helped by the dollar, which traded close to a record low against the euro. The U.S. currency weakened to an all-time low today of $1.3555 per euro, and last traded at $1.3563, according to electronic foreign-exchange trading system EBS.

Coca-Cola Co. added 25 cents to $41.76. The world's largest soft-drink maker got 70 percent of sales outside North America in 2003. A falling dollar makes its goods cheaper abroad.

General Motors Corp., the world's largest automaker, gained 15 cents to $39.98. The company generated 28 percent of its sales in regions other than the U.S. last year.

Tidal Waves

Some travel-related and insurance shares declined after the world's most powerful earthquake in more than 40 years caused 30- foot tidal waves that killed more than 19,000 in Asian coastal towns from Thailand to India yesterday.

Four Seasons Hotels Inc., the largest manager of luxury hotels, lost $1.74 to $81.31. Marriott International Inc., another hotelier, fell 27 cents to $62.97. American International Group Inc., the world's No. 1 insurer, slid 21 cents to $66.08.

Sharper Image Corp. slumped $3.89 to $19.25. The seller of robotic vacuum cleaners and massage chairs reduced its full-year profit forecast because holiday sales were disappointing. Earnings will be as little as 90 cents a share, falling short of its previous estimate of at least $1.29.

An S&P 500 gauge of oil and gas producers dropped 0.7 percent for the worst performance among the benchmark's industry groups in response to the slump in oil prices.

Exxon, whose chemicals business reported record third- quarter profit because of surging oil prices, lost 42 cents to $51.55. ChevronTexaco Corp., the No. 2 U.S. oil company, declined 42 cents to $52.25.

To contact the reporter on this story: Ari Levy in New York at alevy5@bloomberg.net.

Last Updated: December 27, 2004 10:50 EST