CLOSING BELL

Dow 10374.16   +91.75, Nasdaq 2235.90  +22.46 at 2235.90,S&P 1105.24  +10.64 

With the market coming off of its worst single-session percentage drop in more than two weeks yesterday, the stock market bounced back with stocks near their day highs.

The gain came despite a very poor New Homes report.  Sales of newly built single-family homes unexpectedly fell to a record low in January. The Commerce Department said sales dropped -11.2 percent to a 309,000 unit annual rate, the lowest level since records started in January 1963.

Fed Chairman Bernanke indicated today that the FOMC continues to anticipate a moderate pace of recovery for the economy and that inflation is expected to remain low.  He also said that at some point the Fed will need to begin to tighten monetary conditions to prevent inflationary pressures.

Retailers also had a great day. The sector outperformed for the second straight session with a +2.0% gain.  

Financials also had a good day, the sector gained +1.7%.

Materials stocks struggled in trading, yet commodities managed to move higher in the face of the dollar's gain. The CRB Commodity Index a gained +0.9% today.

Oil was strong finishing +1.3% higher at $79.93 per barrel.  This was despite a larger-than-expected build in weekly crude oil inventories.