Stocks: Itty-Bitty Uptick

Updated from 4:06 p.m. EDT

After undulating in the wake of an earnings deluge Wednesday morning, the U.S. stock market finished the day on the upside. Investors had spent the day mulling over the Federal Reserve's beige book of economic updates and a continued decline in the price of oil, which ended below $125 a barrel.

The Dow Jones Industrial Average climbed 29.88 points, or 0.3%, to 11,632.38, and the S&P 500 tacked on 5.18 points, or 0.4%, to 1,282.18. The Nasdaq finished up 21.92 points, or 1%, at 2325.88.

On Tuesday, the three major indices ramped up in the final hour of trading to close near their highs. Shortly thereafter, Internet portal Yahoo! (YHOO Quote - Cramer on YHOO - Stock Picks) announced lackluster second-quarter earnings and tepid guidance, but the stock traded up 4.1% to $20.52 Wednesday.

In the financial sector, Washington Mutual (WM Quote - Cramer on WM - Stock Picks) reported a loss that was worse than analysts had feared, but also said it wouldn't need to raise additional capital. Shares fell 20% to $4.64 after Standard & Poor's downgraded one of the bank's credit ratings.

In commodities, crude oil for September delivery lost $3.98 to end at $124.44 a barrel after losing $3 Tuesday. August gold futures slumped $25.70 to settle at $922.80 an ounce.

James Paulsen, chief investment strategist for Wells Capital Management, said that ever since May, the market's been all about oil. Wall Street was speculating that record-high oil prices would wreck the U.S. consumer and subsequently the housing market. "That has been the mindset since oil surged, and I think that is what's reversing."

Paulsen said the housing bill passing through Congress today is an added bonus, but not the determining factor in today's rally. Outside of the financials, "You've got, actually, just as big if not bigger move in consumer cyclical. I don't think that's tied to the housing bill," he said. "Their crisis discounts are coming out."

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