* Weekly jobless claims falls first time in a month
* June PPI comes in above expectation
* Target rises as higher quarterly sales forecast
* Indexes higher: Dow 0.10 pct, S&P 0.13 pct, Nasdaq 0.16
(Updates to open)
By Ankur Banerjee and Tanya Agrawal
July 13 (Reuters) – U.S. stocks were slightly higher in
early trading on Thursday, ahead of Federal Reserve Chair Janet
Yellen’s second day of testimony and a day after she signaled a
dovish stance on interest rates.
Yellen’s comments were part of her two-day semi-annual
monetary policy testimony before Congress. She will resume her
testimony at 10 a.m. ET (1400 GMT).
Investor cheered Yellen’s view of gradual increase in rates
on Wednesday, with world shares hitting their fourth all-time
high in less than a month on Thursday.
The Dow rose to a record high close while U.S. stocks kept
their upward momentum on Wednesday following Yellen’s comments.
The U.S. economy is healthy enough for the Fed to raise
rates and begin winding down its massive bond portfolio, though
low inflation and a low neutral rate may leave the central bank
with diminished leeway, Yellen said.
The U.S. economy grew at a “slight to moderate” pace over
the last several weeks across all regions of the country, with
wage pressures reported for both low- and high-skilled jobs, the
Federal Reserve reported on Wednesday in its latest compendium
of regional economic activity.
“Her speech was labeled as dovish due to no signs of any
aggressive rate hikes or having a firm plan in relation to
scaling down their balance sheet,” said Naeem Aslam, chief
market analyst at Think Markets UK.
At 9:38 a.m. ET (1338 GMT), the Dow Jones Industrial Average
was up 20.67 points, or 0.1 percent, at 21,552.81, the
S&P 500 was up 3.25 points, or 0.13 percent, at 2,446.50.
The Nasdaq Composite was up 9.88 points, or 0.16
percent, at 6,271.05.
Six of the 11 major S&P 500 sectors were higher, with the
technology index’s 0.33 percent rise leading the
Data showed U.S. producer prices unexpectedly rose in June
as sustained increases in the cost of services offset declining
energy prices, suggesting a recent moderation in inflation was
In the 12 months through June the producer level inflation,
or PPI, increased 2.0 percent, above the 1.9 percent rise
Data from the U.S. Labor Department showed jobless claims
falling last week for the first time in a month. Initial claims
for state unemployment benefits dropped to 247,000 for the week
ended July 8, from 248,000.
On the stocks, Delta shares were down 2.3 percent,
after the No.2 U.S. airline’s quarterly profit missed analysts’
Target rose 3.8 percent after the retailer said it
expects a “modest” increase in second-quarter comparable sales,
the first rise in five quarters.
Yandex jumped 16.5 percent after the company and
Uber agreed to combine their Russian ride-sharing businesses.
Advancing issues outnumbered decliners on the NYSE by 1,388
to 1,101. On the Nasdaq, 1,146 issues fell and 1,069 advanced.
(Reporting by Ankur Banerjee and Tanya Agrawal in Bengaluru;
Editing by Arun Koyyur)