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U.S. stocks fall back after rally, Yellen`s testimony awaited

February 10, 2014

Wall Street edged lower Monday, as investors took a breath after a two-day rally last week, as they heed cautiousness ahead of Federal Reserve Chairwoman Janet Yellen's testimony before the Congress Tuesday. Wall Street took in a second straight month of weak job growth, but stocks regained their footing nonetheless, perhaps because investors were downplaying the weak data due to severe winter weather that has hurt the economy. Sharp gains in the past two sessions, which helped indexes bounce off key technical levels, split analysts' views. Some are calling an end to the correction and others expect the pullback to continue.  -The S&P 500 Index dropped 0.15% to 1794.33 . The benchmark index fell as much as 5.8% from its peak before rebounding on Thursday. It is about 3% below its all-time high reached on Jan 15. This week investors will focus on Fed Chairwoman Yellen's first semi-annual monetary policy testimony to Congress, coming on Tuesday. She is scheduled to appear before the Senate Banking Committee on Thursday. History shows that her predecessor Ben Bernanke has given the market a boost in the past with those testimonies.  -The Dow Jones Industrial Average dropped 0.28% to 15749.55 -The NASDAQ Composite rose 0.05% to 4127.72 . As of 10:59 a.m. ET Corporate earnings Shares in Hasbro Inc. fell initially after the toy maker's quarterly earnings, announced before the market open, missed Wall Street's expectations. Hasbro said profit edged down as weakness in its boys' category offset growth in both the girls' and games business. However, shares reversed losses and are up 4.7%, leading S&P 500 gainers. McDonald's Corp. said its global same-store sales improved in January, with stronger performances in China and Europe making up for softness in the U.S. Shares were 0.4% lower. Shares in Loews Corp. fell 5%, making it the worst performer on the S&P 500 index. The company said its fourth-quarter loss widened owing to impairment charges that offset growth for its CNA Financial Corp. unit. Apple Inc. shares rose 1.2% after activist investor Carl Icahn backed off a bit from some of his rhetoric regarding Apple's share buyback efforts. In a open letter to Apple shareholders, Icahn said he was "supportive" of Apple recently buying back $14 billion of its stock.

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Source: Financial Markets

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