After the Rally: Stocks Resume Digestion

It's after a breakthrough that the best work can be done. Or so any good psychologist or therapist would say.

Days after myriad averages hit record or multiyear highs, a flurry of Federal Reserve speakers couldn't rile up traders Tuesday. But the market was working its way through some ever-present issues: global imbalances, the gap between rich and poor in America, the shackles on digital music, and whether the semiconductors can actually have a good run or not.

Late in the day, a bold statement from Apple(AAPL Quote) Chief Executive Steve Jobs about the future of digital music helped edge the markets into the green as oil remained below the $60 watermark. Apple, which closed up 0.8%, jumped as soon as Jobs posted his treatise, which called for the major record companies to abolish digital rights management -- a technology that limits the transferability of digital music.

On the face of things, such a system arguably would be negative for Apple, but the company's dominance in the field of digital music devices puts Apple in a position to benefit from more digital music freedom.

Meanwhile, Wal-Mart(WMT Quote) was up 0.1% on news it is joining the digital download scene. The retailer launched a test program on its Web site to allow visitors to download movies and television content.

Shares might have gone up more Tuesday, but a federal appeals court granted class-action status to a group of women who claim Wal-Mart was discriminatory in deciding on pay and promotions. This marks the largest sexual-discrimination lawsuit in history.