BLBG: U.S. Stocks Advance With Banks as Yellen Eyes More Rate Hikes
U.S. stocks reversed early losses to extend a rally into a sixth day as Federal Reserve Chair Janet Yellen told Congress more interest-rate hikes would be appropriate if the U.S. economy stays on course.
The S&P 500 Index added 0.4 percent to 2,338, a record high, at 4 p.m. The benchmark is up 1.8 percent over the six-day period, the longest advance since Dec. 9. The Dow Jones Industrial Average added 92 points to 20,504.
Financial shares up 1.2%; bank stocks in S&P 500 29% since election
Real estate, utility and telecommunications down at least 0.1% as the 10-year Treasury weakens for a fourth session, trading at 2.472%
VIX drops to 10.8
Momentum in S&P 500 stocks heating up, with 15% of companies in the index trading above a 14-day RSI level of 70, considered overbought by technical analysts
Thatâ€™s the highest level of overbought shares since Dec. 13
Attention shifted to Yellenâ€™s first appearance before Congress since Trump was sworn in, as investors looked for insight on whether the Fed will accelerate monetary tightening
U.S. wholesale prices jumped in January by 0.6%, the most since September 2012, led by higher costs of gasoline and indicating inflation is beginning to stir
Small-business optimism continues to run hot, boosted by the new administrationâ€™s pledge to revoke two regulations for every new one issued
After-market Tuesday: American International Group (AIG), Express Scripts Holding (ESRX), Agilent Technologies (A), LendingClub (LC), Diamondback Energy (FANG), Devon Energy (DVN)
Pre-market Wednesday: Hilton Worldwide Holdings (HLT), Huntsman (HUN), Targa Resources (TRGP), US Foods Holding (USFD), Och-Ziff Capital Management (OZM), Entergy (ETR), PepsiCo (PEP), Wyndham Worldwide (WYN), Analog Devices (ADI), Medicines (MDCO), Smart Sand (SND)
The Stoxx Europe 600 Index closed up less than 0.1%