By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market pushed higher
after an early wobble on Thursday after Federal Reserve Chairwoman
Janet Yellen, testifying before the Senate Banking Committee,
reaffirmed the central bank's accommodative policy.
Earlier, investors weighed a surprise jump in weekly jobless
claims against a smaller-than-expected drop in durable-goods
orders.
The S&P 500 (SPX) ticked up 4 points, or 0.1% to 1,849.78,
briefly breaching a key technical level of 1,850 at session highs.
A close at or above 1,850 would set a record.
The Dow Jones Industrial Average (DJI) added 31 points, or 0.2%
to 16,227.89.
The Nasdaq Composite (RIXF) rose 14 points, or 0.3% to
4,306.93.
Follow our stock market live blog.
"There is no difference between Yellen Fed and Bernanke Fed and
markets like that. She also reassured markets that the Fed is not
on autopilot and adjustments will be made if warranted," said Kim
Caughey Forrest, a portfolio manager and senior equity analyst at
Fort Pitt Capital Group.
Yellen told senators it was difficult to tell how much of the
recent decline in U.S. economic growth was due to weather, adding
the central bank might consider a pause in its reduction of bond
buying if the weakness persists.
In economic news, the number of people applying for unemployment
benefits rose last week to match the highest level of 2014,
suggesting that progress in a gradually recovering U.S. labor
market has slackened off. However, the average of new claims over
the past month, usually a more reliable gauge than the up-and-down
weekly number, was unchanged at 338,250.
A slowdown in orders over the past few months by American
manufacturers was reflected in the durable-goods orders reading for
January, however the drop was less than forecast. Orders for U.S.
durable goods fell 1.0% in January as demand tapered off for most
big-ticket items except military hardware, the government said
Thursday. Economists surveyed by MarketWatch had expected orders to
fall 2.5%.
Investors kept a close eye on the much-hyped technical level of
1,850 on the S&P 500.
"This market seems to be driven by technical levels, rather than
data. If we push through the 1,850, then we will go higher. But if
we stay below that market for the next few days, then markets will
head south and we will test 1,750," said Uri Landesman, president
of Platinum Partners.
In corporate news, Best Buy Co Inc. (BBY) shares rose 5.4% after
the retailer said it swung to a fourth-quarter profit, beating
forecasts.
J.C. Penney Co. (JCP) jumped 23% to $7.35, after making gains
late Wednesday on better-than-expected results.
Mylan Inc. (MYL) shares gained 10.7%, after the pharmaceutical
company on Thursday reported fourth-quarter profit above analysts
forecasts.
First Solar Inc. (FSLR) shares climbed 6.9%, recovering some of
the solar panel maker's sharp losses on Wednesday after its
fourth-quarter earnings fell short of expectations.
Sears Holdings Corp. (SHLD) rose 6.3% after the retailer said
its losses narrowed compared with the same period a year ago.
Nonetheless, U.S. same-store sales fell 6.4%.
Pacific Ethanol Inc. (PEIXD) rallied 48% after the low-carbon
renewable-fuel company reported that it swung to a profit in the
fourth quarter.
Transocean Ltd. (RIG) shares slid 2.7% after the offshore oil
driller on Wednesday said its fourth-quarter earnings fell to 64
cents a share from $1.26 a share earlier.
Overseas, Asian markets were mixed and European stocks fell.
Gold prices rose as political turmoil in Ukraine prompted haven
buying and the dollar rose against the Russian ruble but weakened
against euro.
More stories from MarketWatch:
Stop trading! Now, before 2014 turns into 1929
Merrill Lynch reaffirms $65 price target on Tesla
Why can't the Fed predict recessions? 4 reasons
Subscribe to WSJ: http://online.wsj.com?mod=djnwires