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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