Small-cap stocks led Wall Street higher on Thursday, as U.S. markets experienced another riptide session of massive swings and overheated volume.

The Russell 2000 Index finished with a 5.4 percent gain, while the Standard & Poor's Small Cap 600 improved 5.3 percent.

Those performances were slightly better than those seen in the Dow Jones Industrial Average, which closed 4 percent higher; the Standard & Poor's 500, which rose 4.6 percent; and the Nasdaq Stock Market, which added 4.7 percent.

As you may have heard, the rating agency Standard and Poor's cut the United States bond rating from AAA to AA+ - which ironically is about the same as going from an A+ to an A grade if we were talking about a grade-school equivalent. It doesn't sound like too much of a big deal.

But, as you may also know, this bond downgrade was a long time coming - and also completely meaningless considering the source of the down grade.

S&P infamously rated some of the worst mortgage backed securities (MBSes) as AAA.

Stocks look poised to push higher again this week. The S&P 500 is on the cusp of a break above resistance at 1,335. And that would likely set up a test of the post-crash highs at 1,344.

But as Jason Cimpl told his TradeMaster Daily Stock Alerts members this morning, earnings are coming and stocks have been relentless since recent lows:

Although the market participants have seemingly not cared about economic data for the past few weeks, the market will not move higher if earnings disappoint. And earnings season will officially begin next week. Even though the bulls look unstoppable now, and to a large degree they have been over the past eight months, a poor earnings season will awaken the bears.

Additionally, I would prefer the market fall to 1301, which lets the bulls regroup before they take stocks to new highs.

Alcoa (NYSE:AA) starts earnings season next Monday, April 11.

Evidence is mounting that the auto industry is springing back to life.

The auto industry worldwide is on the mend, and that signals opportunity for investors to become reacquainted not only with the big vehicle makers, but some of the smaller parts suppliers.

The days of the General Motors (NYSE: GM) and Ford (NYSE: F) profit machines cranking out generous earnings and dividends may be over. But that doesn't mean that there aren't solid dividend paying stocks in the auto sector.

Today is the day Fed Chief Ben Bernanke heads into the House of Representatives for what’s certain to be a very contentious Q&A session with Republican leaders.

Republicans took a majority in the House on promises to deal with the Federal deficit. And they also capitalized on populist resentment about “too big to fail” bailouts during the financial crisis. Bernanke is the bailout poster-child, and today’s session will be the first real opportunity for the House Republicans to show voters just how serious and mad they are.

The main bone of contention will be the Fed’s QE2 stimulus. Those opposed say the $600 billion bond-buying program is spending we can’t afford and will lead to inflation.  

You've no doubt heard about the wildfires ravaging Russia's countryside. These fires have seriously impacted Russia's wheat harvest, and have sent wheat prices soaring around the world.

This morning, mining company BHP Billiton (NYSE:BHP) offered $39 billion, or $130 a share for the world's largest fertilizer company, Potash Corp of Saskatchewan (NYSE:POT).

The significance of this deal is clear. Lower crop yields increases the demand for fertilizer. Russia's wildfires have brought this point to an immediate catalyst for fertilizer prices. But the underlying issues of agriculture have made fertilizer stocks a growing sector for the last few years.