By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

Hewlett-Packard skids 9% after earnings miss

NEW YORK (MarketWatch) -- U.S. stocks were little-changed Wednesday, with the main indexes hovering near record levels achieved during the previous session, as investors heard more of the same arguments from the testimony by Federal Reserve Chairwoman Janet Yellen.

Chairwoman Yellen answered questions from members of Congress for the second day and continued to stress that normalization of interest rates will begin when the committee is confident that inflation is on track to hit the central bank's inflation target of 2% growth.

The S&P 500 (SPX) was flat with six of the 10 main sectors trading lower. Utilities were leading the losses, while consumer discretionary stocks rose. The Dow Jones Industrial Average (DJI) switched between small gains and losses. More than half of the 30 members of the blue-chip index were trading higher. The Nasdaq Composite (RIXF) inched higher weighed down by losses in tech stocks.

Hewlett-Packard (HPQ) was weighing down the tech index, with shares off nearly 9%. The company said first-quarter revenue (http://www.marketwatch.com/story/comcast-h-p-macys-first-solar-earnings-in-focus-2015-02-24) fell short of Wall Street's expectations and it also cut its 2015 outlook to adjust for a stronger dollar.

Read more: What's changed since the last time the Nasdaq was at 5,000? (http://www.marketwatch.com/story/six-differences-between-now-and-last-time-nasdaq-was-at-5000-2015-02-24)

Read more: Yellen prepares markets for a less-patient Fed (http://www.marketwatch.com/story/yellen-prepares-markets-for-less-patient-fed-2015-02-24)

Bruce Bittles, chief investment strategist at RW Baird & Co, said Janet Yellen has provided more of the same regarding Fed policy.

"There was nothing new and investors know that the Fed will not want to lose its credibility by raising rates too soon, only to cut them back again. We believe they will stay market-friendly for longer," Bittles said.

He cautioned about overly bullish sentiment in the market, which is usually associated with diminishing liquidity.

"After hating this market for six years, investors are finally getting in. The latest survey points that the bullishness is close to extreme levels. When optimism is very high, it means that investors are fully invested and do not have any more money left to put into stocks, leading to big corrections. We are watching optimism levels very closely," he added.

"So far the S&P 500's action has lock-stepped with the comments in these [Yellen's] missives in that the market's internal energy is being released on the upside. Surprisingly, given the two-week rally, there is still plenty of internal energy available to push prices higher," said Jeffrey Saut, chief investment strategist at Raymond James in a note to investors.

Retailers in focus:Chesapeake Energy Corp.(CHK) shares slid 11% after a profit miss, making the it the biggest decliner on the S&P 500.

Late Tuesday, First Solar Inc.(FSLR) reported that its profit nearly tripled in the fourth quarter. Shares, which climbed 10% on Tuesday on deal news, were up more than 4%.

Dollar Tree(DLTR) and Salesforce.com Inc.(CRM) are also due to report.

Read more: Target, Dollar Tree, Salesforce.com earnings in focus (http://www.marketwatch.com/story/target-dollar-tree-salesforcecom-earnings-in-focus-2015-02-25)

Shares of Southwest Airlines Co.(LUV) fell slightly after the company said it pulled 125 jets out of service Tuesday (http://www.marketwatch.com/story/southwest-pulls-more-than-125-jets-out-of-service-over-missed-inspections-2015-02-25) -- roughly one-fifth of its fleet -- over missed inspections.

Consumer Reports (http://www.marketwatch.com/story/the-just-in-the-press-adores-tesla-2015-02-24) named Tesla Motors Inc'.s(TSLA) Model S the top pick in 2015 for car buyers. Shares rose 1%.

Also read: Apple shares may be ripe for a correction (http://www.marketwatch.com/story/apple-ripe-for-a-correction-2015-02-24)

Other markets: The view of a dovish Federal Reserve helped push gold prices (http://www.marketwatch.com/story/gold-retakes-1200-on-tailwinds-from-yellen-and-china-data-2015-02-25)(GCH5) past $1,200 an ounce. The dollar (http://www.marketwatch.com/story/dollar-pulls-back-versus-yen-after-yellen-testimony-2015-02-25)(DXY) moved lower across major crosses, while WTI oil prices (http://www.marketwatch.com/story/oil-futures-keep-a-wary-eye-out-for-us-inventory-data-2015-02-25)(CLJ5) were little changed ahead of U.S. inventory data due later.

European stocks also pulled back, taking a breather from their own record run on Tuesday. The Stoxx Europe 600 saw its highest close since October 2007. Hong Kong shares got a small lift (http://www.marketwatch.com/storyno-meta-for-guid) after an initial reading of China's manufacturing activity surprised to the upside.

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