The backlash from an horrific Christmas season for US retailers has begun with an online toy seller filing for bankruptcy protection and more stores expected to do the same.

Wall Street put together a moderate advance in light trading today after the finance arm of General Motors won a government lifeline, but dreary Christmas spending figures dashed the chance of a big year-end rally.

Concerns over the economic impact of the Asian earthquake tsunami disasters pushed stocks lower in the United States today, putting Wall Street’s recent rally on hold despite decent holiday sales figures and falling oil prices.