* Yellen, new Fed chair, takes hot seat at Capitol
* Yellen says labor market recovery far from complete
* Sprint, CVS climb after results
* Indexes up: Dow 0.53 pct, S&P 0.43 pct, Nasdaq 0.45 pct
By Chuck Mikolajczak
NEW YORK, Feb 11 U.S. stocks rose on Tuesday
after new Federal Reserve Chair Janet Yellen reinforced the
central bank's plan to trim its market-friendly stimulus while
noting the health of the labor market needed to improve.
In her first public comments as Fed chief, Yellen, giving a
balanced testimony to a House committee, acknowledged recent
volatility in global financial markets but said it did "not pose
a substantial risk to the U.S. economic outlook," and that she
strongly supported the policy approach of her predecessor, Ben
Yellen's appearance before the House Financial Services
Committee began at 10 a.m. (1500 GMT).
"We didn't see anything, at least in the written release
that would cause us any concerns," said Paul Mangus, head of
equity research and strategy at Wells Fargo Private Bank in
Charlotte, North Carolina.
"Naturally the testimony is just beginning so that will be
very interesting to watch, the written testimony was in many
ways a continuation of what the Bernanke policies had been."
The Dow Jones industrial average rose 83.69 points or
0.53 percent, to 15,885.48, the S&P 500 gained 7.74
points or 0.43 percent, to 1,807.58 and the Nasdaq Composite
added 18.85 points or 0.45 percent, to 4,167.023.
The central bank has cut its bond-buying program by $10
billion at each of its last two meetings, reducing the monthly
purchases to $65 billion.
Stocks also saw a potential headwind removed when Republican
leaders in the U.S. House of Representatives caved in to demands
by President Barack Obama and agreed to advance legislation
raising Washington's borrowing authority.
Sprint Corp, the No. 3 U.S. mobile provider, reported
quarterly revenue ahead of analysts' expectations and said it
added wireless subscribers in the fourth quarter. The stock was
up 5.3 percent to $8.10.
CVS Caremark Corp posted higher quarterly profit as
it processed more prescriptions and benefited from the
introduction of new generic drugs. The stock rose 2.2 percent to
Of 345 companies in the S&P 500 that have reported earnings
through Monday morning, 67.8 percent have beaten profit
expectations, above the long-term average of 63 percent,
according to Thomson Reuters data. Almost 66 percent have topped
revenue forecasts, above the historical average of 61 percent.
Conagra Foods lost 7.6 percent to $28.68 as one of
the worst performers on the S&P 500. The maker of Chef Boyardee
pastas and Slim Jim beef jerky cut its full-year profit outlook,
citing weaker profits in its private label business and lower
sales of certain consumer foods brands.
Infloblox Inc plunged 48 percent to $17.22 after
the network equipment maker estimated second-quarter revenue
below analysts' average forecast.
Cadence Pharmaceuticals Inc surged 26.2 percent to
$13.97 after the company agreed to be acquired by specialty
pharmaceuticals company Mallinckrodt Plc said for about
$1.3 billion. Mallinckrodt climbed 11.3 percent to $66.01.