* All 10 S&P sectors rally after Yellen's statement
* House Republicans aim to pass debt-limit bill
* Sprint and CVS climb after results, Dean Foods down
* Dow up 1.2 pct, S&P 500 up 1.1 pct, Nasdaq up 1 pct
By Ryan Vlastelica
NEW YORK, Feb 11 Wall Street rose for a fourth
straight session on Tuesday as Congress agreed to advance
legislation extending U.S. borrowing authority and the Federal
Reserve's new chief held off from making any changes to its
schedule for trimming stimulus.
The gains were broad, with all 10 S&P 500 sectors up for the
day and about 75 percent of New York Stock Exchange-traded
stocks ending higher. About 67 percent of Nasdaq-listed shares
closed in positive territory, while the S&P 500 ended just 1.6
percent away from its record closing high.
Republican leaders in the U.S. House of Representatives
caved in to demands by President Barack Obama and agreed to
advance legislation increasing Washington's borrowing authority,
removing a potential market headwind.
Fed Chair Janet Yellen emphasized continuity in the U.S.
central bank's policy strategy of cutting asset purchases by $10
billion a month, saying she strongly supports the approach of
her predecessor, Ben Bernanke. In her first public comments as
Fed chief, Yellen also said that while the U.S. unemployment
rate has fallen recently, labor market conditions needed to
"No one was really expecting a major debt ceiling showdown
or changes in tapering, but anticipation is one thing, and the
experience is another," said John Carey, portfolio manager at
Pioneer Investment Management in Boston. "Everyone is more
relaxed now that those issues are officially off the table."
The Fed's policies have been credited with driving the
market's steep gains in 2013, and those accommodative measures
are expected to keep a floor under stock prices for as long as
they continue. However, had the pace of ending the program been
slowed, it may have raised concerns that the economy was still
not strong enough to grow on its own.
The Dow Jones industrial average jumped 192.98
points, or 1.22 percent, to end at 15,994.77. The Standard &
Poor's 500 Index rose 19.91 points, or 1.11 percent, to
finish at 1,819.75. The Nasdaq Composite Index climbed
42.87 points, or 1.03 percent, to close at 4,191.05.
All three indexes scored a fourth straight gain, with the
S&P 500 jumping about 4 percent over that period. The index also
moved above its 50-day moving average for the first time since
Jan. 24, a positive sign of near-term momentum. The index has
recovered much of its recent weakness, which took the index down
as much as 6 percent from its record close on Jan. 15.
Sprint Corp rose 2.7 percent to end at $7.90 after the
company reported quarterly revenue ahead of analysts'
expectations and said it added wireless subscribers in the
CVS Caremark Corp shares climbed 2.7 percent to
finish at $68.77 after the company posted higher quarterly
profit as it processed more prescriptions.
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, the shares of both Dean Foods Co and
ConAgra Foods fell after the companies gave weak
outlooks. Dean Foods warned of a first-quarter loss while
ConAgra cut its full-year outlook. Dean's stock slid 7.4 percent
to $14.08 while ConAgra's stock lost 6.3 percent to $29.08.
After the market closed, shares of Fossil Group Inc
rose 5 percent to $122.80 after the watch and accessories
company reported fourth-quarter results, while TripAdvisor Inc
shares rose 1 percent to $85 after the travel website
Infloblox Inc shares plunged 48.1 percent to $17.19
after the network equipment maker estimated second-quarter
revenue below analysts' average forecast.
Cadence Pharmaceuticals Inc surged 26.5 percent to
$14 after the company agreed to be acquired by specialty
pharmaceuticals company Mallinckrodt Plc for about $1.3
billion. Mallinckrodt's stock climbed 11.6 percent to $66.19.
About 5.94 billion shares traded on all U.S. platforms,
according to BATS exchange data.