By Anora Mahmudova and Barbara Kollmeyer, MarketWatch

Hewlett-Packard skids 9% after earnings miss

NEW YORK (MarketWatch)--U.S. stocks gave up earlier gains Wednesday, with the main indexes retreating from record levels reached during the previous session.

Big losses in Apple Inc. might have been contributing to the sudden change of course. Apple stock, which is the heaviest-weighted issue in the S&P 500 and Nasdaq Composite, fell 2.5%

Earlier, stocks were in positive territory after investors heard more of the same arguments from the testimony by Federal Reserve Chairwoman Janet Yellen.

Yellen answered questions from members of Congress (http://blogs.marketwatch.com/capitolreport/2015/02/25/live-blog-and-video-of-janet-yellens-second-day-of-testimony-before-congress/) for the second day and continued to stress that normalization of interest rates will begin when the Federal Open Market 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 down 0.2% with eight of the 10 main sectors trading lower. Utilities were leading the losses, while consumer discretionary and energy stocks rose. The Dow Jones Industrial Average (DJI) alternated between small gains and losses. More than half of the 30 members of the blue-chip index were trading higher. The Nasdaq Composite (RIXF) was slightly lower.

Hewlett-Packard (HPQ) was also weighing on 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.

Alan Gayle, senior investment strategist at RidgeWorth Investments, said that the Fed is not going to pull the rug from under the markets.

"Yellen reminded everyone that the Fed has dual mandate--unemployment and inflation. At current levels inflation numbers are not where they should be," Gayle said.

Gayle noted that they did shift money from U.S. stocks into international equities.

"European PMIs are ticking up and with the start of quantitative easing from ECB, we see more growth in the equities there compared with U.S. stocks," he added.

Retailers in focus:Chesapeake Energy Corp.(CHK) shares slid 8.5% after a profit miss, making 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 6.7%.

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 1.8% 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 1.2%.

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) edged higher on Wednesday as traders took a close look at a U.S. government report showing that crude supplies rose for a seventh straight week.

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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