By Victor Reklaitis and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks drifted slightly lower in
early action Friday, with investors awaiting Federal Reserve
Chairwoman Janet Yellen's speech at a high-profile gathering of the
world's central bankers.
The S&P 500(SPX) fell 2.34 points, or 0.1%, to 1,990.03,
while the Dow Jones Industrial Average(DJI) lost 22.44 points, or
0.1%, to 17,017.05. The Nasdaq Composite(RIXF) lost 3.44 points to
trade at 4,528.66
But barring a Friday shake-up, the three main indexes are on
track to log weekly advances. Thursday's session ended with the
S&P 500 marking its 28th record close this year, the Dow
finishing above 17,000 for the first time since July 24 and the
Nasdaq ending at its highest level since March 31, 2000. The
S&P 500 up 1.7% for the week, the Dow is up 2.1% and the Nasdaq
up 1.4%.
Dovish comments expected in Jackson Hole: Yellen, at her speech
at the annual gathering of central bankers in Jackson Hole, Wyo.,
is expected to focus on the labor market and sound dovish. Her
remarks are slated to begin at 10 a.m. Eastern. Yellen has
previously outlined the lineup of indicators she's watching to
gauge the health of the labor market, including wages and the
number of people working part time who want to work full-time.
The "hawkish noises coming out of the recent [Fed] meeting
minutes will add extra spice to what Yellen has to say," said
Richard Perry, market analyst at Hantec Markets, in a Friday note.
"It would be surprising if she did anything other than hold a
steady ship and that the Fed will maintain an accommodative
monetary policy for a considerable period of time."
Minutes of the Fed's meeting in July, released this week, showed
senior officials are becoming increasingly divided on how fast the
labor market is improving. But many Fed policy makers believe more
improvement is needed before they begin raising interest rates.
Several regional Fed presidents, including San Francisco Fed
President John Williams and St. Louis Fed President James Bullard,
are also offering their own views on the central bank's policies.
Bullard said there is some slack in the labor market, but it isn't
significant. Also set to speak Friday is European Central Bank
President Mario Draghi at 2:30 p.m. Eastern. Beyond the central
bankers talking, there are no major U.S. economic reports on
Friday's schedule.
Stocks to watch: Women's apparel retailer Ann Inc. (ANN) posted
second-quarter earnings and sales that topped analysts
expectations, but offered muted third-quarter guidance. Shares fell
5.3%.
Aéropostale Inc. (ARO) shares dropped nearly 8% after the
clothing retailer's forecast a wider-than-expected loss for the
fiscal third quarter.
Apple Inc. (AAPL) shares were little changed. The company's
suppliers are struggling to get enough screens ready for the launch
of the bigger-screened iPhone 6 next month, according to a report
by Reuters, citing unnamed sources.
On the upside, Foot Locker Inc. (FL) shares jumped 4.2% after
the athletic shoe retailer's second-quarter results came in better
than Wall Street anticipated.
Ross Stores Inc. (ROST) gained more than 6% as second-quarter
earnings at the discounter rose 12%. Ross also raised its full-year
earnings projection.
GameStop Corp. (GME) shares climbed 8.3% after the videogame
retailer's third-quarter earnings forecast outpaced estimates.
(Read more about the day's big movers here
http://www.marketwatch.com/story/gamestop-soars-aeropostale-sinks-foot-locker-reports-earnings-friday-2014-08-21.)
Other markets: Oil futures (CLV4) slipped and gold futures
(GCZ4) edged up. In Asia overnight, Japan's Nikkei Average broke a
nine-session winning streak, and in Europe, the Stoxx 600 was
slightly lower.
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