YAHOO [BRIEFING.COM]: Thanks to underlying support in the broader market and leadership from bank stocks, the major indices were able to shake off a mild fit of profit taking and close modestly higher.

Stocks started the session with moderate losses as participants pushed back after watching stocks climb more than 10% during the course of the past two weeks. The major averages made a respectable move higher when news surfaced that new home sales during June spiked 11% to hit a better-than-expected annualized rate of 384,000. With new home sales coming in at their highest rate since November, the supply of unsold homes moved lower to 8.8 months from 10.2 months in May.

Enthusiasm over the new home sales report didn't last very long, but a supportive bid for the broader market helped contain weakness. The stock market was also supported by strength among bank stocks, which underpinned a 1.5% gain by the financial sector.

Bank stocks showed strength for the entire session and helped the KBW Banking Index log a 3.1% gain. With many major banks having already reported their quarterly results, there weren't any particular news items to account for the strength behind banking issues. However, news from The Wall Street Journal that second quarter lending was down nearly 3% among 15 large U.S. banks suggested that many banks remain cautious about putting their money to work. Reports indicate that lending also slowed in the euro-zone.

In-line earnings from Dow component Verizon (VZ 31.00, -0.50) and Honeywell (HON 34.24, +0.25) were underwhelming. Honeywell's cautious outlook did little to inspire. Such was the same for Aetna (AET 25.72, -0.72), which also fell short of earnings expectations.

A prerecorded interview with Fed Chairman Bernanke will air on PBS tonight. According to Reuters, Bernanke responded to questions about the Fed's actions during the past year by saying that he would not be the one who presided over the second Great Depression. Bernanke also stated that the jobless rate will remain high even after the U.S. exits recession.DJ30 +15.27 NASDAQ +1.93 SP500 +2.92 NASDAQ Adv/Vol/Dec 1497/2.16 bln/1144 NYSE Adv/Vol/Dec 1939/1.04 bln/1061