YAHOO[BRIEFING.COM]: The stock market snapped a six-session losing streak by rallying 4.0% Tuesday. The rebound was helped by short covering after the stock market registered a multiyear closing low in the prior session.

Though Monday marked the S&P 500's lowest closing level since 1997, the stock market was still able to hold above its November intraday low of 741. Meanwhile, financials, which have underpinned the market's recent weakness, have refused to completely roll over after slipping to multiyear lows late last week. Heading into Tuesday, financials were trading 5% above those lows.

Given the crowded betting against the financial stocks, the inability to fall to new lows added pressure on short sellers to cover their bets, helping drive the financial sector 11.8% higher. This helped drive the broader market to its best single-session percentage gain in one month.

The advance in financials was undeterred by word JPMorgan Chase (JPM 21.02, +1.51) is cutting its quarterly dividend to $0.05 per share from $0.38 per share. The cut aims to help protect the bank's fortress balance sheet should macro conditions further deteriorate.

JPMorgan indicated during its conference call that its trading business has been strong this quarter. The statement encouraged buying in Goldman Sachs (GS 92.98, +12.91), which traded with leadership.

Today's rally comes ahead of President Obama's national address this evening, and follows Fed Chairman Bernanke's semiannual testimony to the Senate Banking Committee, which did not provide any further detail regarding government plans to shore up the banking system.

Bernanke noted that measures have helped restore a degree of stability to some financial markets, but significant stresses persist in many markets. Bernanke indicated the outlook for economic activity is uncertain and downside risks probably outweigh those to the upside. He also stated the recession may end in 2009 and the economy may recover in 2010.

Bernanke will testify before the House Committee on Financial Services (10:00 AM ET).

Word that Microsoft (MSFT 17.17, -0.04) may still be interested in a deal with Yahoo! (YHOO 12.75, +0.78) caught investors' attention this morning. Still, the idea of a stronger Internet search company did little to undercut shares of Google (GOOG 345.45, +15.39), which traded with leadership in the Nasdaq.

The latest batch of earnings announcements was generally better than expected, though, it didn't attract much attention by the broader market. HJ Heinz (HNZ 33.77, +1.80) posted an upside surprise, as did Macy's (M 8.25, +0.85), Nordstrom (JWN 13.69, +2.36), and Home Depot (HD 20.69, +1.96). Target (TGT 27.83, -0.60) posted disappointing results, but retailers still logged a 4.6% gain.

The gain by retailers came even though the Conference Board indicated consumer confidence fell to a record low in February.DJ30 +236.16 NASDAQ +54.11 NQ100 +3.8% R2K +4.5% SP400 +4.5% SP500 +29.81 NASDAQ Adv/Vol/Dec 2028/2.15 bln/703 NYSE Adv/Vol/Dec 2676/1.84 bln/438