* All 10 S&P sectors rally after Yellen statement
* House Republicans aim to pass debt limit bill
* Sprint and CVS climb after results, Dean Foods down
* Indexes up: Dow 1.2 pct, S&P 1 pct, Nasdaq 1 pct
By Ryan Vlastelica
NEW YORK, Feb 11 U.S. stocks rose 1 percent in a
broad rally on Tuesday, with investors relieved the Federal
Reserve wouldn't make any changes to its schedule for trimming
its market-friendly stimulus.
All 10 S&P sectors rose on the day, with most climbing more
than 1 percent. The benchmark index is now 1.6 percent away from
its record closing high, recovering much of its recent weakness,
which took the index down as much as 6 percent.
In her first public comments as Fed chief, Chair Janet
Yellen emphasized continuity in the central bank's policy
strategy of cutting asset purchases by $10 billion a month,
saying she strongly supports the approach of her predecessor,
Yellen also said that while the unemployment rate has fallen
recently, labor market conditions needed to improve further.
"Nothing unexpected was said, but the market is very
encouraged to hear it confirmed that the policy of being
accommodative will continue," said Weyman Gong, chief investment
strategist at Signature in Norfolk, Virginia.
The policies have been credited with fueling the market's
steep gains in 2013, and they are expected to keep a floor under
equity prices for as long as they continue.
The Fed first announced a slowing in the bond-buying program
in December, followed by another one in January. Had that pace
been slowed, it may have raised concerns that the economy was
still not strong enough to grow on its own.
In other positive news, 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, removing a potential market headwind.
The Dow Jones industrial average was up 192.24
points, or 1.22 percent, at 15,994.03. The Standard & Poor's 500
Index was up 18.58 points, or 1.03 percent, at 1,818.42.
The Nasdaq Composite Index was up 40.85 points, or 0.98
percent, at 4,189.03.
The S&P 500 rose above its 50-day moving average for the
first time since January 24, a technical resistance level that
could fuel further gains if convincingly held.
"The market's valuation is at a high level, probably a
little too high," said Gong, who helps oversee $3 billion in
assets. "Our economy is growing modestly, but we don't expect
earnings will continue to expand at their current pace."
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 2.5 percent to $7.88.
CVS Caremark Corp rose 2.6 percent to $68.66 after
the company posted higher quarterly profit as it processed more
Of the 357 companies in the S&P 500 that have reported
earnings through Tuesday 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.
On the downside, both Dean Foods Co and ConAgra Foods
slumped after giving weak outlooks. Dean warned of a
first-quarter loss while ConAgra cut its full-year outlook.
Shares of Dean slumped 8.2 percent to $13.96 while ConAgra lost
6.5 percent to $29.02.
Infloblox Inc plunged 48 percent to $17.28 after
the network equipment maker estimated second-quarter revenue
below analysts' average forecast.
Cadence Pharmaceuticals Inc surged 26.4 percent to
$13.99 after the company agreed to be acquired by specialty
pharmaceuticals company Mallinckrodt Plc said for about
$1.3 billion. Mallinckrodt climbed 10.2 percent to $65.35.