YAHOO[BRIEFING.COM]: All three major indices registered fresh multiyear closing lows in the prior session, but came rallying back this session to log their best single-session performance by percent in months. The rebound came after Citigroup issued an encouraging update and reports indicated the uptick rule may be reinstated.

Citigroup (C 1.45, +0.40) told investors that it earned a profit during the first two months of 2009. Given the conditions and challenges facing the financial sector, news that the beleaguered financial giant is moving in the right direction supported a bid for financial stocks.

Financial stocks were further bolstered by reports that House Financial Services Chairman Barney Frank said he believes the Securities and Exchange Commission (SEC) will reinstate the uptick rule as early as next month. The rule would help prevent traders from adding to the momentum of falling stocks. That could be particularly helpful to financial stocks, which have fallen more than 40% year-to-date.

Investors are also hoping that a congressional committee meeting this week will move to temporarily relax mark-to-market rules. The rules have caused banks and financial firms to incur massive write-downs, which have driven losses and destroyed capital.

Rep. Frank stated mark-to-market accounting rules must be improved, but Senator Shelby says any mark-to-market accounting changes should be made by the SEC. The SEC stated it will not seek to suspend such rules.

Financial stocks surged 15.6% this session, providing leadership to the broader market, which had become quite oversold in recent sessions. The stock market's advance was further helped by short-covering. Still, trading volume on the NYSE climbed above 2 billion shares, which is well above recent averages, suggesting there was also some conviction behind the advance.

Roughly 97% of the companies in the S&P 500 finished with a gain. All 30 of the Dow components closed higher.

Investors showed little reaction to Fed Chairman Bernanke's speech about financial reform and systemic risk.

Other corporate news also had little effect on sentiment. Whirlpool (WHR 23.11, +3.72) reaffirmed its 2009 outlook, which allows for an upside surprise, but United Technologies (UTX 40.79, +3.23) issued estimates that fall short of the consensus. Texas Instruments (TXN 15.66, +0.97) and Exelon (EXC 42.57, -1.27) expect earnings that are in-line with analysts' expectations. Kroger (KR 21.44, +1.98) issued upside guidance along with better-than-expected fourth quarter earnings results.

Economic data was lackluster. Monthly wholesale inventories fell 0.7% in January. Economists, on average, expected a decline of 1.0% in January. The prior reading was revised modestly lower to reflect a 1.5% decline. DJ30 +379.44 NASDAQ +89.64 NQ100 +6.6% R2K +7.1% SP400 +6.9% SP500 +43.07 NASDAQ Adv/Vol/Dec 2243/2.15 bln/468 NYSE Adv/Vol/Dec 2918/2.15 bln/221