By Barbara Kollmeyer, MarketWatch
Toll Brothers, Home Depot climb on earnings beat
NEW YORK (MarketWatch) -- U.S. stocks were little changed as
Federal Reserve Chairwoman Janet Yellen began her testimony to
Congress on Tuesday.
In her prepared remarks, she said there is still room for
improvement in the labor market, while noting that if the word
"patient" is removed from forward policy guidance, that won't mean
a rate hike in a couple of meetings won't automatically follow.
She said Fed officials think that they will hike interest rates
when they are "reasonably confident" that low inflation is moving
back toward the Fed's 2% annual target, providing labor markets are
healthy.
Live blog and video of Janet Yellen's first day of testimony
before Congress
(http://blogs.marketwatch.com/capitolreport/2015/02/24/live-blog-and-video-of-janet-yellens-first-day-of-testimony-before-congress/?link=instory)
The S&P 500 (SPX) was flat at 2,108, with six of its 10 main
sectors trading lower. The Dow Jones Industrial Average (DJI) was
barely in the green, up 38 points at 18,142. The Nasdaq Composite
(RIXF) edged lower, as technology stocks were giving up some of the
gains from the previous sessions.
Need to Know: Janet Yellen is about to swoop in on this tranquil
stock market
(http://www.marketwatch.com/story/janet-yellen-is-about-to-swoop-in-on-this-tranquil-stock-market-2015-02-24)
Kristina Hooper, U.S. investment strategist at Allianz Global
Investors, said investors will be following Janet Yellen's
testimony very closely.
"Janet Yellen will be very careful in what she says during her
testimony, but we know she strives for transparency and clear
communications," Hopper said.
"The FOMC created a view that Fed would be dovish and patient,
but that was also before the January jobs report. Markets are
hoping to get some clarity," Hooper said.
Some analysts say she could surprise investors by keeping alive
the possibility of a June rate hike, even though the minutes of the
most recent Federal Reserve meeting showed a dovish tone.
Read: Janet Yellen could strike a hawkish tone before Congress
(http://www.marketwatch.com/story/janet-yellen-could-strike-hawkish-tone-before-congress-2015-02-23)
The Case-Shiller home price index for December showed a surprise
uptick, however market reaction was muted. The consumer-confidence
index for February declined more than expected.
Stocks to watch: Toll Brothers Inc.(TOL) shares jumped after the
homemaker reported better-than-expected profit and sales. Home
Depot Inc. (HD) shares also climbed after posting a strong surge in
sales, though the company also warned
(http://www.marketwatch.com/story/home-depot-sales-beat-warns-on-dollar-2015-02-24)
on a strong dollar in its outlook for the year. The jump in the
stock is keeping Dow industrials in positive territory
(http://www.marketwatch.com/story/home-depots-stock-is-keeping-dow-in-positive-territory-2015-02-24).
Shares of First Solar Inc.(FSLR) and SunPower Corp.(SPWR) rose
14% and 15%, respectively, late trade after those companies said
late Monday that they plan an initial public offering for a
pooled-asset spinoff
(http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23).
Shake Shack Inc. (SHAK) shares rose sharply after several
investment banks began covering the stock with the hold, neutral
and buy ratings.
For more on today's notable movers, read Movers & Shakers
column
(http://www.marketwatch.com/story/comcast-h-p-macys-first-solar-earnings-in-focus-2015-02-24).
Other markets: European stocks inched up, while the Athens
Composite Index surged 6%, after initial comments on Greece's
reform proposal from European officials pointed to the approval of
a four-month bailout extension
(http://www.marketwatch.com/story/greek-stocks-bonds-rally-on-bailout-deal-optimism-2015-02-24).
European Central Bank President Mario Draghi will unveil the
EUR20 banknote in Frankfurt on Tuesday, and give a speech at the
same time
(http://www.marketwatch.com/story/what-time-does-draghi-speak-on-tuesday-2015-02-24).
In Asia, the Nikkei 225 index nabbed a fresh 15-year high
(http://www.marketwatch.com/story/japan-stocks-at-fresh-15-year-high-ahead-of-yellen-testimony-2015-02-24).
The dollar was firmer against the yen (USDJPY) and euro (EURUSD)
.
Crude-oil prices
(http://www.marketwatch.com/story/oil-prices-continue-to-fall-pushing-brent-under-60-a-barrel-2015-02-24)(CLJ5)
turned slightly higher, while gold
(http://www.marketwatch.com/story/gold-faces-three-straight-down-days-ahead-of-janet-yellens-testimony-2015-02-24)(GCJ5)(GCJ5)
remained under pressure.
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