By Victor Reklaitis and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks traded near the flat line
Friday, as investors largely appeared to shrug at Federal Reserve
Chairwoman Janet Yellen's balanced speech at a high-profile
gathering of the world's central bankers.
The S&P 500(SPX) dipped 2 points, or 0.1%, to 1,990, while
the Dow Jones Industrial Average(DJI) shed 13 points, or less than
0.1%, to 17,027. The Nasdaq Composite(RIXF) tacked on 6 points, or
0.1%, to 4,538.
Barring a Friday shake-up, the three main indexes are on track
to log weekly advances. Thursday's session ended with the S&P
500 marking its 28th record close this year, the Dow finishing
above 17,000 for the first time since July 24 and the Nasdaq ending
at its highest level since March 31, 2000. The S&P 500 is up
1.8% for the week, the Dow is up 2.2% and the Nasdaq, 1.7%.
Careful comments in Jackson Hole: Yellen, at her speech at the
annual gathering of central bankers in Jackson Hole, Wyo., said the
economy is getting closer to the Fed's goals of full employment and
stable inflation, and the debate at the central bank is "naturally
shifting" to debating when the central bank should begin to raise
interest rates. Balancing this more hawkish tone, Yellen said that
19 labor market indicators followed by the Fed suggest that the
decline in the unemployment rate overstates the improvement in
overall labor market conditions.
The main indexes aren't making big moves Friday because Yellen's
speech "pretty much" matched expectations, said Bruce McCain, chief
investment strategist at Key Private Bank.
"I think the most important takeaway is that as one of the most
dovish members of the board, she's clearly much less dovish than
she was," McCain told MarketWatch. He said Yellen is now making
"more an argument for patience rather than dovishness."
Several regional Fed presidents, including San Francisco Fed
President John Williams and St. Louis Fed President James Bullard,
are also offering their own views on the central bank's policies.
Bullard said there is some slack in the labor market, but it isn't
significant. Also set to speak Friday is European Central Bank
President Mario Draghi at 2:30 p.m. Eastern. Beyond the central
bankers talking, there are no major U.S. economic reports on
Friday's schedule.
Stocks to watch: Women's apparel retailer Ann Inc. (ANN) posted
second-quarter earnings and sales that topped analysts
expectations, but offered muted third-quarter guidance. Shares fell
5%.
Aéropostale Inc. (ARO) shares dropped 9% after the clothing
retailer's forecast a wider-than-expected loss for the fiscal third
quarter.
Apple Inc. (AAPL) shares were up 0.6%. The company's suppliers
are struggling to get enough screens ready for the launch of the
bigger-screened iPhone 6 next month, according to a report by
Reuters, citing unnamed sources.
Also on the upside, Foot Locker Inc. (FL) shares jumped 3% after
the athletic shoe retailer's second-quarter results came in better
than Wall Street anticipated, while Ross Stores Inc. (ROST) gained
6% as the discounter raised its full-year earnings projection.
GameStop Corp. (GME) shares climbed 6% after the videogame
retailer's third-quarter earnings forecast outpaced estimates.
(Read more about the day's big movers here
http://www.marketwatch.com/story/gamestop-soars-aeropostale-sinks-foot-locker-reports-earnings-friday-2014-08-21.)
Other markets: Oil futures (CLV4) slipped and gold futures
(GCZ4) edged up. In Asia overnight, Japan's Nikkei Average broke a
nine-session winning streak, and in Europe, the Stoxx 600 was
slightly lower.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires