* Fed's Yellen says she does not see asset bubbles
* Cisco shares tumble after revenue warning
* Walmart recovers after earlier drop on weak results
* Houghton Mifflin surges on return to market after
* Dow up 0.3 pct, S&P up 0.4 pct, Nasdaq up 0.1 pct
By Luke Swiderski
NEW YORK, Nov 14 The Dow and S&P 500 hit record
intraday highs on Thursday after Janet Yellen, the U.S. Federal
Reserve Chair nominee, told a Senate committee the Fed's
accommodative policies would continue as long as the economy
Gains in the technology-heavy Nasdaq and the Dow were held
back by Cisco Systems, however, after the networking
giant reported disappointing results on Wednesday. Cisco shares
dropped nearly 12 percent.
Yellen's Q&A followed late gains in the market Wednesday
ahead of the release of her prepared remarks. In her testimony,
Yellen said the Fed's current $85 billion in monthly bond
purchases "cannot continue forever," but dismissed the notion
current prices suggest bubble-like conditions.
"I think it's becoming quite clear that Vice Chair Yellen
will be continuing with an accommodative stance for some time,"
said Ryan Larson, head of equity trading at RBC Global Asset
"Markets are breathing a little bit of a sigh of relief."
The Dow Jones industrial average rose 39.11 points or
0.25 percent, to 15,860.74, the S&P 500 gained 6.81
points or 0.38 percent, to 1,788.81 and the Nasdaq Composite
added 3.481 points or 0.09 percent, to 3,969.056.
Cisco shares were on track to post their worst day since
Feb. 10, 2011, slumping 11.7 percent to $21.18 after it warned
its revenue would dive as much as 10 percent this quarter and
keep contracting until after the middle of 2014.
"I think it caught people off guard," said Daniel Morgan,
senior portfolio manager at Synovus Trust Company.
"I think they're thinking that with Microsoft and other
old-line technology companies doing well, that Cisco would come
in and at least produce an average quarter."
Cisco's retreat weighed down the S&P 500 technology sector
, which fell 0.45 percent, but the other nine sectors
were higher, boosted by confidence that Yellen will continue the
Fed's current policies.
Since the beginning of the year, the S&P has gained 25.4
percent and the Dow 21 percent, thanks in part to the Fed's
massive bond-buying stimulus.
Houghton Mifflin shares rose 28.75 percent to
$15.45 on the textbook publisher's first day of trading after
emerging from bankruptcy last year. The stock rose as much as 33
percent during the session.
Wal-Mart shares rebounded after earlier losses,
rising 0.4 percent to $79.19 after the bellwether reported
lower-than-expected quarterly sales. Kohl's
slid 7.3 percent to $54.01 after the department store
chain reported weaker-than-expected results.