Stocks little changed ahead of Yellen speech

The widespread expectation of a Fed rate hike has pushed benchmark yields up by 19 basis points so far this week, the largest one-week increase since November 18, the week after the USA presidential election.

With Yellen set to opine on the outlook for the USA economy, at the Executive Club in Chicago, investors took their foot off the gas out of fear that she might sound an overly hawkish tone. Other Fed officials due to speak today include Charles Evans, Jeffrey Lacker and Jerome Powell.

The dollar strengthened once again on Friday as the possibility of a Fed rate hike on March 15 loomed nearer, encouraging traders to purchase dollars.

According to INTL FCStone, with President Trump’s speech (to Congress) behind us, focus has shifted to Janet Yellen’s remarks out tomorrow.

WTI oil is consolidating losses after falling to a 3-week low of $52.52 a barrel yesterday.

The S&P 500 is already up 6.3 percent so far this year, compared with the 9.5 percent it gained in 2016, triggering worries over valuation.

High-dividend paying consumer staples and utilities were the laggards. Yields on 7-year notes rose to 2.347 percent, also the highest since February 15.

Costco slid 3.6 percent after the warehouse club operator reported earnings that missed estimates.

Among stocks, Snap Inc, which closed up more than 40% in its much-awaited market debut on Thursday, was up almost 9% at US$26.57.

Declining issues outnumbered advancers on the NYSE by 1,568 to 1,162. Aussie / dollar fell to a 1-month low of 0.7542.

The S&P 500 Index posted its worst day in a month yesterday as investors withdrew from a rally that has pushed US equities to new highs.