YAHOO [BRIEFING.COM]: Continued speculation about loan guarantees for Greece and Fed Chairman Bernanke's hint at a rate hike kept the dollar in focus this session. Its advance took stocks lower, save financials.

The Dollar Index spent the entire session in positive territory as newswires were filled with conflicting reports about whether Germany will lead a bailout for Greece and other European countries currently in need. Its strength grew as Fed Chairman Bernanke's prepared remarks about how the Fed may opt to raise the discount rate before long made the rounds. The greenback had been up as much as 0.7% against competing currencies, but eased back a bit to settle with a 0.4% gain.

The midsession pullback by the greenback helped the stock market recover from a loss of more than 1%. Financials also provided support -- the sector steadily outperformed for the entire session, such that it finished with a 0.8% gain. It was the only major sector to finish in higher ground, though.

Strength in the financial sector was broad as multiline insurers (+2.2%), diversified banks (+1.5%), and diversified financial services players (+1.2%) all logged handsome gains.

Despite leadership from financials, the broader market couldn't push through the headwind that stemmed from a stronger dollar. In turn, the stock market failed to extend the previous session's 1.3% gain. However, stocks are still up 0.2% week-to-date. Though that's relatively unimpressive, stocks haven't booked a weekly gain since the first week of January.

Hardly 1 billion shares exchanged hands this session on the NYSE, making for rather light volume. Many participants may continue to wait on the sidelines until something of substance comes out of the Greece debt dilemma.  

Despite broader market weakness, Treasuries failed to find support as the benchmark 10-year Note shed roughly 11 ticks. Its yield pushed above 3.7% at its session low. Disappointing results for an auction of 10-year Notes were the primary cause. They featured a yield of 3.69%, an indirect bid of 33%, and a bid-to-cover ratio of 2.67.

Looking ahead, participants will continue to focus on the dollar and any headlines regarding a bailout for Greece. Weekly jobless claims numbers, which are due tomorrow morning, also remain a point of interest for participants. Results for an auction of 30-year Bonds could also come into play.

Advancing Sectors: Financials (0.8%)
Declining Sectors: Materials (-0.7%), Utilities (-0.6%), Health Care (-0.6%), Energy (-0.5%), Consumer Discretionary (-0.5%), Telecom (-0.4%), Tech (-0.3%), Industrials (-0.3%), Consumer Staples (-0.2%)DJ30 -20.26 NASDAQ -3.00 NQ100 -0.2% R2K +0.1% SP400 -0.1% SP500 -2.39 NASDAQ Adv/Vol/Dec 1281/2.03 bln/1310 NYSE Adv/Vol/Dec 1500/1.01 bln/1497