S&P 500 jumps to a record high close

Adam Shell, USA TODAY4:38 p.m. EST February 27, 2014


(Photo: Richard Drew, AP)

STORY HIGHLIGHTS

  • New Fed chief Yellen testifies before Senate
  • Investors want to see Fed's response to weather impact on economy
  • S&P 500 has flirted with new all-time highs three straight days


NEW YORK -- Stocks rose Thursday, pushing the Standard & Poor's 500 index to a record high close.

Gains were fueled by comments from Federal Reserve Chair Janet Yellen and encouraging results from several retailers.

According to preliminary calculations, the S&P 500 rose 9.13 points, or 0.5%, to close at 1,854.29, topping its Jan. 15 all-time closing high of 1,848.38. The S&P has now wiped out its losses for the year and is up 0.3%.

The Dow Jones industrial average gained 74.30 points, or 0.5%, to 16,272.71. The Dow is still down 1.8% for the year.

The Nasdaq composite added 26.87 points, or 0.6%, to 4,318.93. The Nasdaq is the best-performer of the year, up 3.4%.

In testimony before Congress, Fed Chair Yellen acknowledged that economic data, ranging from job growth to retail sales and housing, has come in softer over the past six weeks.

Yellen, just as other economists have been arguing, said "it's clear" some of the economic softness can be attributed to severe winter weather. But she stressed the Fed would need more time to evaluate how much of the weakness is due solely to stormy weather.
YELLEN: Testifies on Capitol Hill
J.C. PENNEY: Stock surge after earnings news

"It's clear unseasonably cold weather has played a role," Yellen told the Senate Banking Committee. "We need to get a firm handle on how much of the soft data can be attributed to weather." But she added that the Fed "will be attentive" to other economic signposts to see if the economy "is progressing in line with our expectations."

When asked if the central bank might consider a pause in its current timetable to pull back on stimulus, Yellen reiterated that the Fed's "tapering" of its bond-buying program is "not on a pre-set course." She added that if the economic outlook declined or changed "significantly," the Fed would reconsider its timetable, but stressed that it is way too early to make that call.

Wall Street likely viewed the chairwoman's words as market-friendly.

Janet Yellen, chair of the Federal Reserve Board, testifies Thursday about monetary policy during a Senate Banking, Housing and Urban Affairs Committee hearing on Capitol Hill.(Photo: Saul Loeb, AFP/Getty Images)

Ahead of the chairwoman's testimony, traders said they would be listening for clues as to whether the recent economic weakness may alter the Fed's current "taper" timetable, which the central bank has said will be done at a measured pace and likely be concluded by the end of the year.
Investors were also digesting fresh economic news, which came in mixed.
Durable goods orders in January fell 1%, a tad better than the dip of 1.7% economists expected.
First-time jobless claims rose 14,000 last week to 348,000, which was above the 335,000 Wall Street anticipated.
JOBLESS CLAIMS: Four-week average steady
DURABLE GOODS: Orders drop 1%
BEST BUY: Returns to profits
In Asia, Japan's Nikkei 225 stock index edged 0.3% lower to 14,923.11.
European stocks ended mixed. Investors there were rattled by reports that armed guards stormed government offices in Crimea, a region of Ukraine that is considered pro-Russia. Britain's FTSE 100 index gained 0,2% to 6,810.27 but Germany's DAX index fell 0.8% to 9,588.33.
Oil prices edged lower, with benchmark U.S. crude for April delivery down 27 cents to $102.32 in electronic trading on the New York Mercantile Exchange. The contract gained 76 cents to settle Wednesday at $102.59.
On Wednesday, the Dow rose 18 points, or 0.1%, to 16,198.41. The S&P 500 added just 0.04 point to close at 1,845.16. The Nasdaq composite gained 4.48 points, or 0.1%, to 4,292.06.

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