By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market edged higher on
Tuesday as Federal Reserve Chairwoman Janet Yellen struck a dovish
tone in her prepared remarks to lawmakers.
Yellen said markets should expect the central bank to continue
to follow the low-interest-rate path laid out by her predecessor,
Ben Bernanke.
The S&P 500 (SPX) added 5.3 points, or 0.3%, to 1,805.16,
rising for the fourth straight session. The Dow Jones Industrial
Average (DJI) was up 57 points, or 0.4%, at 15,858.93.
The Nasdaq Composite (RIXF) rose 14 points, or 0.3% to 4,161.07
and is close to erasing losses year-to-date. Follow our stock
market live blog.
Stocks have risen for the past three sessions after testing key
technical levels. Still, some analysts are skeptical about calling
an end to a correction.
Yellen is scheduled to formally deliver her remarks and answer
questions from the members of the House Financial Services
Committee at 10 a.m. Eastern. In her prepared remarks she said:
"Let me emphasize that I expect a great deal of continuity in the
Federal Open Market Committee's approach to monetary policy."
On Thursday, she will testify before the Senate Banking
Committee. Read: Markets alert for any new policy signal from
Yellen
Separately, a gauge of optimism among small businesses ticked up
in January, led by sales expectations and hiring plans, according
to data released Tuesday. Later, at 10 a.m. Eastern Time, data on
wholesale inventories and job openings for December will be
published.
In corporate news, Sprint shares (S) rose 6.9% after the company
reported a narrower loss for the fourth quarter.
CVS Caremark Corp. (CVS) shares rose 3% after the drugstore
chain posted a rise in profit and forecast 2014 earnings in a range
of $4.36 to $4.50 per share.
Rackspace Hosting Inc. (RAX) slid 13% after posting a 30% drop
in profit late Monday, as higher costs more than offset growth in
revenue. It also said Chief Executive Lanham Napier would
retire.
Shares in DSW Inc. (DSW) rallied 3.2% on Tuesday after the
company narrowed its full-year adjusted earnings guidance as
fourth-quarter same-store sales came in flat. It also announced
Chief Financial Officer Douglas Probst will retire May 1.
In other markets, European stocks climbed, while shares in Hong
Kong rallied and Tokyo was shut for a holiday. Gold pushed a win
streak toward a fifth session, while oil rose and the dollar pulled
back.
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