(By Salman - iStockAnalyst Writer)

US stocks jumped on Tuesday after reassuring comments from Citigroup CEO helped ease worries about the health of nation's banking system. Stocks also rallied after a key lawmaker suggested that the uptick rule could be revived soon.

The Dow Jones Industrial Average rallied 379.44 points or 5.80% to finish at 6,926.49. The S&P 500 soared 43.07 points or 6.37% to 719.60. The Nasdaq Composite jumped 89.64 points or 7.07% to end at 1,358.28.

In an internal memo Citigroup CEO Vikram Pandit wrote “I am most encouraged with the strength of our business so far in 2009. In fact, we are profitable through the first two months of 2009 and are having our best quarter-to-date performance since the third quarter of 2007.” Pandit said further that he is disappointed with the current stock price and the "broad-based misperceptions about our company and its financial position.”

Stocks also rallied on hopes that uptick rule could be reinstated within a month. Rep. Barney Frank (D-Mass.), chairman of the House Financial Services committee, said on Tuesday that the SEC should restore the so-called "uptick" rule within a month. "I've spoken to Chair (Mary) Schapiro of the SEC. I am hopeful the uptick rule will be restored within a month," he said.

SEC said on Tuesday that it would consider restoration of the rule. "The Commission may conduct a public meeting as early as next month to consider whether to formally propose reinstatement of the uptick rule, or consider other measures related to short sales," said SEC spokesman John Nester.

Meanwhile, Bernanke said that though he is not in favor of suspension of mark-to-market accounting, but "given what is going on in the world, we should look to identify the weak points of mark-to-market and try and make some improvements on a more expeditious basis."

Financial stocks rallied. Citigroup Inc. (NYSE: C) skyrocketed 40 cents or 38.10% to $1.45. Bank of America (NYSE: BAC) jumped $1.04 cents or 27.73% to $4.79. J.P Morgan (NYSE: JPM) surged $3.60 or 22.64% to $19.50.Wells Fargo & Company (NYSE: WFC) increased $1.84 or 18.46% to $11.81.

General Electric (NYSE: GE) gained $1.46 or 19.70% to $8.87.

Shares of General Motors Corp (NYSE: GM) rallied 21 cents or 12.50% to $1.89.

Among technology stocks, Intel Corp. (NASDAQ: INTC) rose $1.37 or 10.92% to $13.92. Microsoft (NASDAQ: MSFT) climbed $1.33 or 8.78% to $16.48.

Energy stocks gained. Exxon Mobil (NYSE: XOM) finished at $67.39, up $2.82 or 4.37%. Chevron Corp. (NYSE: CVX) climbed $3.50 or 6.01% to $61.78.

Alcoa Inc. (NYSE: AA) jumped 73 cents or 13.54% to $6.12.

Dow Chemical Co. (NYSE: DOW) added 54 cents or 8.53% to $6.87 after it reached a new agreement with Rohm and Haas Co. (NYSE: ROH) to complete its acquisition by April 1. Shares of Rohm and Haas Co. leaped 54 cents or 8.53% to $6.87.

On the earnings front, Brown-Forman Corp. (NYSE: BF-A) slipped $2.02 or 5.05% to $37.95  reported that its third-quarter net income rose to $123 million, or 81 cents a share, from $116 million, or 75 cents a share, in the same period last year. Revenue decreased to $784 million from $877 million.

Shares of Kroger Co. (NYSE: KR) rose $1.98 or 10.17% to $21.44 after it said that fourth quarter net income climbed 8% to $349.2 million, or 53 cents per share, from $322.9 million, or 48 cents per share, in the year ago quarter. Revenue grew slightly to $17.26 billion from $17.23 billion.

Late on Tuesday, convenience store operator Casey's General Stores Inc. (NASDAQ: CASY) reported that fiscal third-quarter net income climbed to $14 million, or 28 cents a share, from $13 million, or 26 cents a share, in the year ago quarter. Revenue dropped to $848.8 million from $1.15 billion. Shares of the company gained $5.11 or 27.07% to $23.99.

According to Commerce Department, wholesale inventories declined 0.7% in January, compared to consensus estimate of 1%.

European stocks settled with strong gains. The U.K. FTSE rose 172.83 points or 4.88% to close at 3,715.23. The German DAX and French CAC gained 5.28% and 5.73 respectively.

Asian stocks finished mixed. The Nikkei 225 fell 31.05 points or 0.44% to 7,054.98. The Hang Seng index of Hong Kong advanced 349.47 points or 3.08% to 11,694.05.

NYMEX crude oil for April delivery declined $1.36 or 3% to settle at $45.71 a barrel.
 
Disclosure: Author does not own any of the stocks discussed here.