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New York - The Dow moved higher in the final hour of trading Tuesday as investors digested Fed Chairman Ben Bernanke's testimony on Capitol Hill and better-than-expected earnings from several Dow components.

The Dow had shot out of the gate this morning, after beats from several components, but pockets of weakness quickly began to emerge, including chips, hardware, banks and retail. The Nasdaq turned lower before both the Dow and S&P.

In his semi-annual testimony before the House, Bernanke repeated the Fed's projection that the economy will start growing again in the second half but cautioned that it would be modest growth and unemployment would continue to rise. He also said the Fed is working on an exit strategy to avoid having its stimulus measures cause a spike in inflation.

"The [Fed] has been devoting considerable attention to issues relating to its exit strategy, and we are confident that we have the necessary tools to implement that strategy when appropriate," he said, echoing comments he made in an op-ed in Tuesday's Wall Street Journal.

Bernanke will repeat his testimony tomorrow morning before the Senate.