American International Group (AIG) said late today that it has settled its long-running legal battle with former CEO  Maurice "Hank" Greenberg in an attempt to move past years of contentious fighting.

Among the terms of the settlement, which also applied to former AIG chief financial officer Howard Smith and two firms associated with Greenberg -- C.V. Starr & Co. and Starr International -- is the release of the parties from all claims.

• Bing: Read more about the AIG's financial crisis

AIG may pay up to $150 million in legal claims made by Greenberg and Smith. A mediator will determine the amount.

AIG also agreed to turn over some photographs of Greenberg, a Persian rug in the company’s headquarters and other personal items. The firm will also give him access to some archival material to help him write his memoirs.

Both sides have agreed to refrain from publicly disparaging the other.

One of first lady Michelle Obama's favorite stores had a great third quarter and looks like it will enjoy the holidays.

Investors sure thought so today. Shares of J. Crew Group (JCG) jumped 7.8% to $44.03.

• Bing: How does J. Crew compare with competitors?

Late Tuesday, the clothing retailer posted third-quarter net income of $43.9 million, or 67 cents per share, up from $19 million, or 30 cents per share, in the same quarter a year ago.

Revenue rose 14% to $414.1 million. Analysts had been looking for earnings of 58 cents per share on $406.6 million in revenue.

Updated: 6:40 p.m. ET

A modest rally ahead of the Thanksgiving holiday pushed the Dow Jones industrials ($INDU)  and the Standard & Poor's 500 Index ($INX) to new highs for the year.

The rally was fueled by better-than-expected new-home sales and a drop in jobless claims.

Gold, meanwhile, closed at a record $1,187 an ounce, up $21.20 from Tuesday.

Markets will be closed Thursday for Thanksgiving and will be open for a half-day on Friday.

The Dow closed up 31 points to 10,464. That was 13 points above 10,451, its previous high close for 2009, set on Monday.

The S&P 500 was up 5 points to 1,111. The Nasdaq Composite Index ($COMPX), meanwhile, finished with a 7-point gain to 2,176, its fourth-best close of the year.

OK, America, here's something to be thankful for.

Not that the stock market has shot higher. Not that the banking system didn't entirely collapse.

Be thankful you're not Dubai.

• Bing: Read more about Dubai World

Yes, they're the money center of the Persian Gulf region. But they have a big problem. The government's Dubai World conglomerate and its real-estate development arm, Nakheel, are in deep trouble.

Dubai World has $59 billion in liabilities. It wants to delay debt payments because it doesn't have the cash to cover the payments just now.

Updated 3:17 p.m. ET

Stocks were holding on to small gains this afternoon in a rally helped by better-than-expected new-home sales and a drop in jobless claims.

At 3 p.m. ET, the Dow Jones industrials ($INDU) were up 29 points to 10,463. The Nasdaq Composite Index ($COMPX) had gained 8 points to 2,177, and the Standard & Poor's 500 Index ($INX) had added 5 points to 1,110.

Markets will be closed Thursday for Thanksgiving and trade for a half-day on Friday.

The Labor Department reported that initial jobless claims fell below 500,000 last week for the first time since Jan. 3. The 466,000 level was the lowest since September 2008.

Meanwhile, there are hints that consumers are spending again. Consumer spending rose 0.7% in October, the Commerce Department reported this morning, better than the 0.6% gain economists had expected.

And new-home sales jumped 6.2% last month to a seasonally adjusted annual rate of 430,000, the highest level since September 2008. Better, the inventory of unsold homes fell to its lowest level since 1971.

There was one down piece of data: a drop in durable-goods orders.