U.S. stocks rise modestly, overcoming early sell-off

U.S. stocks, after selling-off in the early session, bounced back to finish moderately higher on some positive economic news, despite continued political unrest in Egypt.

The Dow Jones Industrial Average and the Nasdaq rose 0.17 percent and 0.16 percent, respectively, while the S&P 500 rose 0.24 percent.

The 10-year bond yield rose by 0.05 percent. Oil futures fell slightly, while gold jumpers 1.71% as investors continued to worry about inflation.

Gains might have been capped by some cautious words from Federal Reserve Chairman.

Ben Bernanke delivered a speech today in which he stated that he does not expect the U.S. job market to improve in the short term, and that the nation will have to cut spending and raise taxes in order to sustain GDP growth.

Bernanke made his remarks in a speech to the National Press Club in Washington, D.C. today.

The big movers today were in the retail clothing sector, as investors reacted to a report by the Institute for Supply Management that its index of retail non-manufacturing businesses rose to 59.4 in January, up from 57.1 at the end of 2010.

Hanesbrands, Inc. (NYSE: HBI) rose 5.37 percent, while AnnTaylor Stores (NYSE: ANN) and Liz Claiborne Inc. (NYSE: LIZ) fished up sharply with 5.55 percent and 4.45 percent gains, respectively.

Investors continued to punish Merck & Co. (NYSE: MRK) after it downgraded its profit forecast this morning -- the stock fell 2.47 percent.

Tomorrow, investors await Q4 earnings announcements from Corning Inc. (NYSE: GLW) and Tyson Foods (NYSE: TSN). Corning fell today 0.97 percent, while Tyson rose 2.75 percent.