Lack of conviction on the NYSE, as less than 1.2 billion shares traded hands

Action was choppy and trading volume was light this session, but stocks were able to close higher for the third straight session.

Financial stocks (+3.7%) finished as the best performing sector with gains being shared by big and small players alike. American Express (AXP 16.68, +1.48) was one of the strongest performers in the sector and the Dow, for that matter. Though the company missed analysts' quarterly estimates, and management expects write-offs to rise, investors were relieved the company didn't report any truly horrendous developments. Given the challenges facing financial companies and consumers, investors have become conditioned to expect lower earnings and higher accounting charges.

Such was the case with Zions Bank (ZION 14.08, +1.89), which reported a deeper-than-expected loss and increased reserves. Still, the stock logged its best single-session advance in three months, and provided support to regional banks (+3.6%).  Wells Fargo (WFC 16.19, +0.71) contributed the most leadership to the financial sector, though. The diversified bank reports its latest quarterly results tomorrow. Wall Street expects earnings of $0.33 per share.

Healthy gains were also had in the health care sector, which finished higher after Bristol-Myers (BMY 23.13, +0.88) and McKesson (MCK 45.22, +4.82) topped analysts' quarterly earnings estimates. Amgen (AMGN 53.09, -1.32), however, missed expectations.

Semiconductors also had a solid session, thanks to leadership from Texas Instruments (TXN 15.31, +0.54). Texas Instruments reported lower earnings, a reduced outlook, and plans to layoff 12% of its workforce, but the announcements weren't altogether surprising considering similar reports already made by Intel (INTC 13.81, +0.43).

Steel emerged as a strong performer after industry stalwarts U.S. Steel (X 31.49, +2.03) and Nucor (NUE 39.80, +2.34) posted better-than-expected results. Expectations were low in light of weak macro conditions. Steel stocks in the S&P 500 logged their best single-session advance in more than one month. However, AK Steel (AKS 8.64, -0.76) failed to participate in the bounce after it reported a deep loss.

The overall strength in steel helped advance the materials sector, where Rohm & Haas (ROH 58.75, +1.65) was a relative leader. Rohm & Haas fell Monday after Dow (DOW 13.19, -0.05) reported it would not be closing its offer for Rohm & Haas by today. Buyout hopes remain alive, though, according to comments by Dow's chief executive in a CNBC interview. Meanwhile, industry peer DuPont (DD 23.27, +0.09) posted a worse-than-expected loss for the latest quarter, and lowered its outlook. However, amid the collapse of the Rohm & Haas - Dow deal, investors were largely prepared for DuPont's results.

Retail stocks were among the session's weakest performers. The group traded lower as investors reacted to reports suggesting the National Retail Federation expects retail sales to fall a 0.5% from last year. Home improvement retailers (-2.6%) were hit especially hard.

Telecom stocks (-3.0%) logged the worst performance of any sector in the S&P 500. Verizon (VZ 29.96, -1.03) was a laggard in its space and in the Dow even though its earnings met expectations. AT&T (T 25.93, -0.90) traded lower in related weakness; the company is scheduled to announce its latest earnings results tomorrow morning.

Though the stock market was able to extend its winning streak with this session's advance, the move seemed to lack conviction as less than 1.2 billion shares traded hands on the NYSE. 

More than 35 companies will announce quarterly results ahead of tomorrow's opening bell, but market participants will be looking forward to the latest Federal Open Market Committee statement. Now that the fed funds target ranges from 0.00% to 0.25%, investors will be looking for hints regarding the committee's methods of steering the economy without using rate cuts.

The latest crude oil inventory data is also due tomorrow. Traders expect a build of inventory, given persistently weak demand. Demand concerns seemed to return to focus this session. After crude futures climbed more than 20% last week, traders pushed crude oil futures more than 9% lower this session. Crude finished near $41.60 per barrel.

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