By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The benchmark S&P 500 closed at a
fresh record Thursday, as investors welcomed dovish remarks from
Federal Reserve Chairwoman Janet Yellen before the Senate Banking
Committee.
Yellen's comments, in which she reaffirmed the central bank's
accommodative policy, pushed the index above the key technical
level of 1,850 to the new high, after three straight unsuccessful
attempts this week.
The S&P 500 (SPX) finished the day 9.13 points, or 0.5%
higher at 1,854.29 and turned positive for the year.
The Dow Jones Industrial Average (DJI) ended the session 74.30
points, or 0.5%, higher at 16,272.71.
The Nasdaq Composite (RIXF) closed at the best level since April
2000, adding 26.87 points, or 0.6%, to 4,318.93.
Read the recap of our stock market live blog.
"There is no difference between Yellen Fed and Bernanke Fed and
markets like that. She also reassured markets that the Fed is not
on autopilot and adjustments will be made if warranted," said Kim
Caughey Forrest, a portfolio manager and senior equity analyst at
Fort Pitt Capital Group.
Yellen told senators it was difficult to tell how much of the
recent decline in U.S. economic growth was due to weather, adding
the central bank might consider a pause in its reduction of bond
buying if the weakness persists.
In economic news, the number of people applying for unemployment
benefits rose last week to match the highest level of 2014,
suggesting that progress in a gradually recovering U.S. labor
market has slackened off. However, the average of new claims over
the past month, usually a more reliable gauge than the up-and-down
weekly number, was unchanged at 338,250.
A slowdown in orders over the past few months by American
manufacturers was reflected in the durable-goods orders reading for
January, however the drop was less than forecast. Orders for U.S.
durable goods fell 1.0% in January as demand tapered off for most
big-ticket items except military hardware, the government said
Thursday. Economists surveyed by MarketWatch had expected orders to
fall 2.5%.
Investors kept a close eye on the much-hyped technical level of
1,850 on the S&P 500.
"This market seems to be driven by technical levels, rather than
data. If we push through the 1,850, then we will go higher. But if
we stay below that market for the next few days, then markets will
head south and we will test 1,750," said Uri Landesman, president
of Platinum Partners.
In corporate news, J.C. Penney Co. (JCP) jumped 25% to $7.47,
after making gains late Wednesday on better-than-expected
results.
Mylan Inc. (MYL) shares gained 9.4%, after the pharmaceutical
company on Thursday reported fourth-quarter profit above analysts
forecasts.
First Solar Inc. (FSLR) shares climbed 8.4%, recovering some of
the solar panel maker's sharp losses on Wednesday after its
fourth-quarter earnings fell short of expectations.
Sears Holdings Corp. (SHLD) rose 6.5% after the retailer said
its losses narrowed compared with the same period a year ago.
Best Buy Co Inc. (BBY) shares rose as much as 7% after the
retailer said it swung to a fourth-quarter profit, beating
forecasts, however, gains fizzled out and shares closed 1%
lower.
Pacific Ethanol Inc. (PEIXD) rallied 65% to $14.94 after the
low-carbon renewable-fuel company reported that it swung to a
profit in the fourth quarter.
Overseas, Asian markets were mixed and European stocks fell.
Gold prices rose as political turmoil in Ukraine prompted haven
buying and the dollar rose against the Russian ruble but weakened
against euro.
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