By Anora Mahmudova and Victor Reklaitis, MarketWatch
First Solar, Home Depot help lead the way higher
NEW YORK (MarketWatch) -- U.S. stocks moved higher Tuesday, with
the S&P 500 and Dow industrials closing at records, as the
market read Federal Reserve Chairwoman Janet Yellen's testimony
before Congress as a reassurance that a rate hike might not occur
until the second half of the year.
The S&P 500 (SPX) finished up by 5.82 points, or 0.3%, at
2,115.48, while the Dow Jones Industrial Average (DJI) gained 92.35
points, or 0.5%, to end at 18,209.19.
The Nasdaq Composite (RIXF) added 7.15 points, or 0.1%, to end
at 4,968.12, leaving it just 1.6% off its March 2000 peak. The
tech-heavy index advanced for the 10th session in a row, scoring
its longest winning streak since mid-2009, when it rose for 12
straight days.
Quincy Krosby, market strategist at Prudential Financial, said
the market reaction to Yellen's testimony indicated that her
comments were perceived as dovish.
"The 10-year yields fell, the dollar gave up gains and stocks
rose, even though those moves were not huge. At this point, just as
the Fed is data-dependent, markets are data-dependent, too," Krosby
said.
"Today's Janet Yellen is the same Yellen who in 1994 warned Alan
Greenspan to be careful about raising rates too soon and too fast.
The Fed needs to see more evidence that the economy is truly on a
viable trajectory before beginning to normalize interest rates,"
she said.
"They would not want to be in a position where they would have
to cut rates shortly after the first hike," she added
Read more: Yellen prepares markets for less-patient Fed
(http://www.marketwatch.com/story/yellen-prepares-markets-for-less-patient-fed-2015-02-24)
Kevin Mahn, chief investment officer at Hennion & Walsh
Asset Management, argued that investors are no longer looking for
the Fed's direction.
"Janet Yellen and the Fed have not changed their view on policy.
Last year Yellen said that rate hikes would probably start about
six months after the end of the tapering process. Six months from
the end of taper in October puts the rate hike schedule for spring
and that's the message from her today," Mahn said.
"We believe a 25 basis point increase sometime between April and
June is very likely and the markets will take it in stride," Mahn
said.
Check out MarketWatch's blog of Yellen's 1st 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)
Individual movers & shakers: Shares in First Solar
Inc.(FSLR) finished 10.2% higher for the biggest daily gain among
S&P 500 components. First Solar and SunPower Corp.(SPWR) 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).
Home Depot Inc.(HD) shares climbed 4% for the best performance
among Dow stocks after the retailer's quarterly results topped
expectations.
For more on today's big movers, read the Movers & Shakers
column
(http://www.marketwatch.com/story/comcast-h-p-macys-first-solar-earnings-in-focus-2015-02-24)
Other markets: European stocks gained, with the Athens Composite
Index surging, 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).
In Asia, the Nikkei 225 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(DXY) was lower after giving up gains.
Crude-oil prices
(http://www.marketwatch.com/story/oil-prices-continue-to-fall-pushing-brent-under-60-a-barrel-2015-02-24)(CLJ5)
ended slightly lower, while gold
(http://www.marketwatch.com/story/gold-faces-three-straight-down-days-ahead-of-janet-yellens-testimony-2015-02-24)(GCJ5)
also remained under pressure.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires