YAHOO [BRIEFING.COM]: Despite optimistic comments from Fed Chairman Bernanke and another dose of better-than-expected economic data, participants opted to take profits rather than extend the prior session's rally.

Fed Chairman Bernanke stated in his testimony before the Joint Economic Committee that recent data suggest that the pace of contraction may be slowing, and that economic activity is expected to bottom out, then to turn up later this year.

Bernanke's premise seemed to be supported by the April ISM Service Index. Showing continued contraction, the Index came in at 43.7, but that was better than expected and up from the prior reading.

Stocks did see a brief flurry of buying as Bernanke's comments and the ISM data hit news wires, but enthusiasm faded and sellers reclaimed control over the session.

Sellers focused most of their efforts on financial stocks, which finished 1.2% lower. Still, that decline hardly offsets the 10% rally that financials had made in the prior session.

Energy stocks also fell out of favor as crude prices shed 1.2% to close at $53.80 per barrel. That weighed on oil exploration companies, which finished 3.8% lower and dragged the overall energy sector to a 1.3% loss.

Materials stocks lagged for much of the session, but pared losses into the close. The sector ended 0.6% lower. Steel stocks (-1.8%) weighed on the sector after AK Steel (AKS 14.39, -1.27) cut its outlook.

Health care stocks managed to hold up against sellers' efforts by closing 0.8% higher. Health care spent virtually the entire session in the green, thanks to leadership from managed health care (+4.8%) and pharmaceuticals (+1.1%).

Casinos and gaming stocks advanced 10.1% after Las Vegas Sands (LVS 11.34, +1.84) was upgraded by analysts at Bank of America's Merrill Lynch ahead of the company's earnings report (adj. $0.01 vs. expected $0.02 loss announced after close) and MGM Mirage (MGM 12.80, +3.36) posted better-than-expected earnings.

Kraft (KFT 25.22, +0.96) also reported a positive earnings surprise. That helped Kraft advance and provide support to the Dow.

Fellow food processor Archer Daniels Midland (ADM 23.84, -2.33) didn't fare as well, though. The company posted disappointing earnings for its fiscal third quarter.

Earnings remain in focus tomorrow morning, but most attention will be fixed on the ADP Employment report (8:15 AM ET), which will provide a glimpse into Friday's official jobs report.DJ30 -16.09 NASDAQ -9.44 NQ100 -0.3% R2K -0.8% SP400 -0.8% SP500 -3.44 NASDAQ Adv/Vol/Dec 1202/2.54 bln/1492 NYSE Adv/Vol/Dec 1354/1.53 bln/1672