U.S. Stocks Rise After Yellen as Financial Shares Gainby
U.S. stocks ended higher Wednesday as Federal Reserve Chair Janet Yellen said the economy is near the central bank’s objectives of full employment and stable prices. Financial stocks advanced even as Goldman Sachs Group Inc. and Citigroup Inc. shares declined after earnings.
The S&P 500 added 0.2 percent to 2,2672 at 4 p.m. in New York as the Dow Jones Industrial Average slid 22 points to 19,805, weighed down by a 1.5 percent decline in shares of Goldman. Both benchmarks lost 0.3 percent on Tuesday as the S&P 500 Banks Index saw its biggest decline since June 27.
- Market mixed with six of 11 industry groups higher
- Financial shares climb 0.8% with 2.6% gain in Bank of America balancing losses of 1.7% in Citigroup and 0.6% in Goldman
- Heavy volume at the open ebbed throughout the day as 6.2 billion shares traded hands, compared with average 7.3 billion so far in 2017
- VIX climbed for second day in a row, up 5.1%
- Economic data were largely in line with expectations, with CPI rising 2.1% YoY and hourly earnings climbing 0.8%
- Factory output rose less than forecast in December, held back by less production of textiles and chemicals; production climbed 0.2%, compared with 0.5% estimate
- Analysts estimate profit at S&P 500 companies rose 4.3 percent in the fourth quarter of 2016, and will jump 12 percent this year
- After-market Wednesday: Plexus (PLXS), Canadian Pacific Railway (CP), PTC (PTC), Boston Private Financial (BPFH), Kinder Morgan (KMI), Netflix (NFLX), Eagle Bancorp (EGBN), SLM (SLM), Wintrust Financial (WTFC), Cohen & Steers (CNS), CVB Financial (CVBF), FNB (FNB), HB Fuller (FUL), Simmons First National (SFNC)
- Pre-market Thursday: BB&T (BBT), M&T Bank (MTB), PPG Industries (PPG), JB Hunt Transport (JBHT), KeyCorp (KEY), Bank of New York Mellon (BK), Union Pacific (UNP)