MARKET SNAPSHOT: U.S. Stocks March To Record Highs As Yellen Testifies

By Barbara Kollmeyer, MarketWatch

Toll Brothers, Home Depot climb on earnings beat

NEW YORK (MarketWatch) -- U.S. stocks moved higher on Tuesday, with the S&P 500 and Dow industrials hitting record highs, as Federal Reserve Chairwoman Janet Yellen testified to Congress.

Janet Yellen stuck to her previous language of being data-dependent when it comes to deciding on the timing and the pace of raising interest rates. She pointed that the Fed needed confidence to see that the inflation rate is rising towards the 2% target while the labor market still has room for improvement.

Live blog and video of Janet Yellen's first day of testimony before Congress (http://blogs.marketwatch.com/capitolreport/2015/02/24/live-blog-and-video-of-janet-yellens-first-day-of-testimony-before-congress/?link=instory)

The main indexes edged higher, as Yellen's testimony was perceived as mostly in line with the previous FOMC statement.

The S&P 500 (SPX) was up four points, or 0.2% at 2,114, with eight of its 10 main sectors trading higher. The Dow Jones Industrial Average (DJI) jumped 82 points, or 0.5%, to 18,197.92. The tech-centric Nasdaq Composite (RIXF) was mostly flat.

Need to Know: Janet Yellen is about to swoop in on this tranquil stock market (http://www.marketwatch.com/story/janet-yellen-is-about-to-swoop-in-on-this-tranquil-stock-market-2015-02-24)

Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management, said that the market's mildly positive reaction is due to the fact that investors are no longer looking for the Fed's direction.

"Janet Yellen and the Fed have not changed their view on policy. Last year Yellen said that rate hikes would probably start about six months after the end of the tapering process. Six months from the end of taper in October puts the rate hike schedule for spring and that's the message from her today," Mahn said.

"We believe a 25 basis point increase sometime between April and June is very likely and the markets will take it in stride," Mahn said.

He noted that at this point, what happens to euro and Greece, Ukraine and Russia and terrorist threats are bigger risks than what the Fed will do.

Earlier, investors shrugged off housing and consumer confidence data that came in slightly below expectations.

Stocks to watch: Toll Brothers Inc.(TOL) shares jumped after the homemaker reported better-than-expected profit and sales. Home Depot Inc. (HD) shares also climbed after posting a strong surge in sales, though the company also warned (http://www.marketwatch.com/story/home-depot-sales-beat-warns-on-dollar-2015-02-24) on a strong dollar in its outlook for the year. The jump in the stock is keeping Dow industrials in positive territory (http://www.marketwatch.com/story/home-depots-stock-is-keeping-dow-in-positive-territory-2015-02-24).

Shares of First Solar Inc.(FSLR) and SunPower Corp.(SPWR) rose 14% and 15%, respectively, late trade after those companies said late Monday that they plan an initial public offering for a pooled-asset spinoff (http://www.marketwatch.com/story/dish-dillards-express-scripts-earnings-in-focus-2015-02-23).

Shake Shack Inc. (SHAK) shares rose sharply after several investment banks began covering the stock with the hold, neutral and buy ratings.

For more on today's notable movers, read Movers & Shakers column (http://www.marketwatch.com/story/comcast-h-p-macys-first-solar-earnings-in-focus-2015-02-24).

Other markets: European stocks inched up, while the Athens Composite Index surged 6%, after initial comments on Greece's reform proposal from European officials pointed to the approval of a four-month bailout extension (http://www.marketwatch.com/story/greek-stocks-bonds-rally-on-bailout-deal-optimism-2015-02-24).

European Central Bank President Mario Draghi will unveil the EUR20 banknote in Frankfurt on Tuesday, and give a speech at the same time (http://www.marketwatch.com/story/what-time-does-draghi-speak-on-tuesday-2015-02-24).

In Asia, the Nikkei 225 index nabbed a fresh 15-year high (http://www.marketwatch.com/story/japan-stocks-at-fresh-15-year-high-ahead-of-yellen-testimony-2015-02-24). The dollar was firmer against the yen (USDJPY) and euro (EURUSD) .

Crude-oil prices (http://www.marketwatch.com/story/oil-prices-continue-to-fall-pushing-brent-under-60-a-barrel-2015-02-24)(CLJ5) turned slightly higher, while gold (http://www.marketwatch.com/story/gold-faces-three-straight-down-days-ahead-of-janet-yellens-testimony-2015-02-24)(GCJ5) remained under pressure.

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