(MENAFN- ProactiveInvestors) U.S. stocks seesawed after data showed inflation firming and Chairwoman Janet Yellen said she expects to raise interest rates this year though the pace of further increases will be gradual.
The S&P 500 (INDEXSP:.INX) skidded less than 0.1 percent to 2130 at 3:39 p.m. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.1 percent to 18264 while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) rose 0.2 percent to 5098.
Yellen expects to raise interest rates this year if the economy meets her forecasts with a gradual pace of tightening to follow. While the labor market is nearing full strength “we are not there yet” she said in a speech today in Providence Rhode Island.
Delaying first rate increase until employment and inflation return to the Fed’s objectives “would risk overheating the economy” Yellen said.
A report today showed the cost of living excluding food and fuel rose at a faster pace than expected in April indicating inflation is inching toward the Fed’s goal. The core consumer-price index climbed 0.3 percent the biggest gain since January 2013.
Most Fed officials have said they are likely to raise rates this year though they haven’t specified precisely when. Economists expect an increase in September according to a survey conducted by Bloomberg.
MOVERS:
Deere & Co () advanced 4.1 percent to $93.10 as the world’s sales leader in farm equipment raised its full-year profit forecast while reporting better-than-expected results for its fiscal second quarter.
Gap () fell 1.2 percent to $38.08 after the biggest apparel-focused retailer in the U.S. reported an 8 percent drop in quarterly profit weakened by a stronger dollar and sluggish sales at its namesake brand.
Campbell Soup () advanced 1.4 percent to $47.59 after profit easily topped Wall Street expectations as the company scaled back promotions and moved forward with cost-cutting plans.
() slumped tumbled 14.5 percent to $2.21 after the teen apparel retailer estimated a bigger-than-expected quarterly loss for the July quarter which includes the opening of the critical back-to-school period.
ADRs of ELong (NASDAQ:LONG) surged 9.4 percent to $22.59 after () said it sold its entire stake in the Chinese online travel company to rival Ctrip.com (NASDAQ:CTRP) and others. ADRs of Ctrip rose 17.6 percent to $84.69.
Fresh Market () fell 5.5 percent to $31.92 as the specialty grocer reported revenue short of Street forecasts. It also cut its forecast for comparable store sales for the year saying they will increase one to 3 percent compared to an earlier projection of 2 to 4 percent.
Hewlett-Packard () jumped 3.1 percent to $34.87 after the technology company reported adjusted quarterly profit of $0.87 per share $0.02 above estimates.
() fell 4.3 percent to $97.26 even as the discount retailer beat estimates by 9 cents with quarterly profit of $1.37 per share and revenues also exceeded forecasts. Comparable store sales for Ross were up 5 percent.
Brocade Communications (NASDAQ:BRCD) jumped 4.4 percent to $12.55. The networking equipment company earned an adjusted $0.22 per share for its latest quarter $0.02 above estimates Brocade also announced a 29-percent increase in its quarterly dividend to 4½ cents per share.
() rose 2.5 percent to $106.81 as the financial software maker exceeded estimates by $0.11 with adjusted quarterly profit of $2.85 per share while revenue for slightly exceeded consensus.
COMMODITIES:
Gold for June delivery on Comex lost 10 cents to settle at $1204 an ounce.
July crude fell 1.7 percent to settle at $59.72 a barrel on the New York Mercantile Exchange.
OTHER MARKETS:
The dollar rose to a 3-1/2-week high against the euro and U.S. bond yields rose after the stronger-than-expected rise in core consumer prices.
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