Abstract: The invention relates to nail holding hammers and utilizes a socket formed in the hammer head adjacent the nail driving surface for receiving the headed end of a nail. A magnet within the socket retains the nail therein, and spaced lugs formed on the head define a nail shank support for the nail outer end. The socket axis, magnet surface, and nail supporting notch are oriented to maintain the length of the nail perpendicular to the hammer nail driving surface insuring that the nail will be set in the direction to be driven.