The night that Jesus was born, there were shepherds tending their flocks in nearby fields. (From this we know that Jesus was probably not actually born in the wintertime, because shepherds do not keep their flocks in the fields during winter.)
For centuries the Jews had been waiting for their Messiah. But when He came, God did not announce it to the rich and powerful. He announced it to the lowliest people in the nation--to shepherds. They, after all, were probably the most ready to hear the news. The rich and famous and powerful are too skeptical to believe that there is anything more important than them in the universe. The humble have a more realistic veiw of the way things are (unless they have been too influenced by the elites).
The shepherds were startled by the appearance of an angel, and the glory of the Lord shown round about them, and they were terrified.
The angel said to them, "Do not be afraid. I bring you good news of great joy that will be for all the people. Today in the town of David a Savior has been born to you; He is Messiah the Lord. This will be a sign to you: You will find a baby wrapped in strips of cloth and lying in a manger."
Suddenly a great company of the Heavenly host appeared with the angel, praising God and saying, "Glory to God in the Highest, and on earth peace to men, on whom His favor rests."
So the shepherds hurried off to find the baby, and they did, and they adored Him.
Here is the adoration of the shepherds by El Greco
The shepherds went off glorifying and praising God for all they had seen and heard. They spread the word about what they had been told about the baby, and all who heard it were amazed.
Mary treasured up all these things and pondered them in her heart.
Here is the pondering of Mary (called "Song of Angels") by Bougereau.
If you want to read about the wise men, click here.
The Bible contains this story as well as other wonderful details in Luke 2:8-40