Stocks showed solid gains in the early going, but the advance was rebuffed by a round of profit taking. Choppy trading ensued, leading stocks to close with a modest gain.

Financials were up more than 5% in the early going. Diversified banks (+3.2%) and other diversified financial services companies (+4.3%) were among the sector's strongest performers. Citigroup (C 1.54, +0.09) also traded higher, though it wasn't quite the leader that it was in the prior session.

Market watchers await details from tomorrow's congressional committee meeting, which will examine mark-to-market accounting rules. The rules have driven massive write-downs at banks and other financial companies; temporarily suspending the rules could remove an overhang from many financial companies, potentially allowing their shares to rip higher.

Removal of the uptick rule is another regulatory change that has been proposed. However, Washington has sent mixed signals regarding the rules, so basing trades on speculation the government may change existing rules could prove treacherous.

A mix of profit taking and uncertainty surrounding financial stocks turned the financial sector's early gain into a fractional loss. Financials were able to climb back, though. They finished 2.4% higher.

The broader market seemed to take its cues from the financial sector for the second straight session.

Each of the major indices climbed more than 1% in the early going. However, the S&P 500 was rebuffed after failing to push through 730, while the Dow failed to crack 7000.

The stock market's failure to extend its advance amid ongoing uncertainty in the financial system and broader economy opened the door for profit taking, which resulted in a choppy session. Stocks retreated into the red, but rebounded. Sellers redoubled their efforts in the final leg of trading, limiting the gains for the session.

Health care (-2.0%) was the session's worst performing sector. Pfizer (PFE 12.79, -0.30) was a primary laggard. Its credit rating was lowered by Moody's to Aa2 from Aa1.

Energy (-1.2%) was also a notable laggard. Its weakness followed a 7.4% drop in crude oil prices, which finished pit trading near $42.35 per barrel.

There were no earnings announcements or economic reports of consequence to influence the direction of trade, though a CNBC report indicated JPMorgan Chase (JPM 20.40, +0.90) was profitable in the first two months of the year.

Tomorrow's earnings calendar is also absent of market movers. However, advance retail sales for February are due tomorrow, along with January business inventories, and weekly jobless claims data.

Treasury Secretary Geithner will testify tomorrow before the Senate Budget Committee on the 2010 Budget.

The G-20 also meets this week. Agenda items include how to ensure economic recovery and restart growth, and how to reform and coordinate the international regulatory and supervisory system to ensure that no such crisis occurs again. DJ30 +3.91 NASDAQ +13.36 NQ100 +1.2% R2K -0.4% SP400 +0.4% SP500 +1.76 NASDAQ Dec/Adv/Vol 1343/1342/2.15 bln NYSE Dec/Adv/Vol 1263/1822/1.75 bln