Financials Help Lift Dow

Updated from 4:40 p.m. EDT

Financials helped two of three major indices in New York record modest gains Thursday after a slate of somewhat improved economic data and remarks from Treasury Secretary Tim Geithner on the proposed financial system overhaul.

The Dow Jones Industrial Average finished up 58.4 points, or 0.7%, to 8555.60, while the S&P 500 was higher by 7.66 points, or 0.8%, at 918.37. The Nasdaq Composite, however, was just slightly lower, down 0.34, or 0.02%, at 1807.72.

Among movers on the Dow, Bank of America(BAC) and JPMorgan Chase(JPM) were up 4.9% and 4.4%, respectively. And the KBW Bank index added 3% as financials rebounded from Wednesday's 22-bank downgrade.

Also Kraft(KFT)and Coca-Cola(KO) gained 3.9% and 3.4%, respectively, and Merck(MRK) added 3.6%.

Technology stocks were slightly lower ahead of Research in Motion(RIMM) earnings, slated for after the close. Shares fell 0.9% to $76.55 during the session.

Friday will bring an assortment of options and futures expirations, in this case a so-called "quadruple witching" that is known to cause some unusual activity in the markets. Stocks have already had a rocky week, with the Dow losing 3.43% prior to Thursday's session, as it remains to be seen whether the rally will fizzle or continue to extend into the summer months.

"We had one of the largest two-day drops since March, and you want to see buyers to step in," says Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "It's an encouraging sign that buyers have stepped in, and the economics say things are showing some signs of life. And that's what we need -- it's time for the economy to step up and agree with that big rally."