S&P 500 extends record

United States stocks rose, extending records for benchmark indexes, as optimism that Janet Yellen will continue the Federal Reserve’s stimulus efforts offset declines in Cisco Systems Incorporated and Kohl’s Corporation.

Bloomberg News reported that Office Depot Incorporated gained 1.5 per cent after Bank of America Corp. recommended investors buy the stock. Cisco tumbled 12 per cent after its profit forecast missed projections. Kohl’s Corp dropped 8.6 per cent after the retailer cut its forecast.

The Standard & Poor’s 500 Index rose 0.2 per cent to 1,785.51 in New York. The S&P 500 and the Dow Jones Industrial Average climbed to records yesterday as Macy’s Inc. led a rally among retailers. The Dow added 17.56 points, or 0.1 per cent, to 15,839.19. Trading in S&P 500 shares was 27 per cent higher than the 30-day average for this time of day.

’’A lot of what we’re going to see in the market today was really set by’’ Yellen’s comments, Chris Gaffney, St. Louis-based senior market strategist at EverBank Wealth Management, said in a phone interview. “She sounded awfully dovish and did not give any indication that she’s ready to pull back on the amount of bond buying that the Fed’s doing.”

Yellen, nominated to be the next chairman of the Federal Reserve, signaled she will carry on the central bank’s unprecedented stimulus until she sees improvement in an economy that’s operating well below potential.

“A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases,” Yellen said in testimony today for her nomination hearing before the Senate Banking Committee today in Washington. “Supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.”

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