By Victor Reklaitis and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks traded near the flat line
in early action 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) was essentially unchanged at 1,992, while
the Dow Jones Industrial Average(DJI) gained 10 points, or less
than 0.1%, to 17,050. The Nasdaq Composite(RIXF) tacked on 4
points, also less than 0.1%, to 4,536.
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
1.9% for the week, the Dow is up 2.4% and the Nasdaq, 1.6%.
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.
Minutes of the Fed's meeting in July, released this week, showed
senior officials are becoming increasingly divided on how fast the
labor market is improving. But many Fed policy makers believe more
improvement is needed before they begin raising interest rates.
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 7% after the clothing
retailer's forecast a wider-than-expected loss for the fiscal third
quarter.
Apple Inc. (AAPL) shares were up 0.3%. 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 2.3%
after the athletic shoe retailer's second-quarter results came in
better than Wall Street anticipated.
Ross Stores Inc. (ROST) gained 6.6% as second-quarter earnings
at the discounter rose 12%. Ross also raised its full-year earnings
projection.
GameStop Corp. (GME) shares climbed 6.8% 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.
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