* Whole Foods tumbles after earnings, outlook
* Internet-related shares drop for second day
* Yellen congressional testimony due
* Indexes: Dow up 0.08 pct, S&P down 0.06 pct, Nasdaq off
(Updates to open, adds quote, Yellen remarks)
By Chuck Mikolajczak
NEW YORK, May 7 U.S. stocks were little changed
on Wednesday, but the Nasdaq slid for a second day, dragged
lower by weakness in Internet shares.
Stocks such as Amazon.com Inc, down 1.9 percent at
$291.50, Facebook Inc, down 2.3 percent at $57.17 and
Google Inc, down 1.5 percent at $514.88, all weighed
heavily on the Nasdaq, which has shed more than 2 percent over
the past two sessions.
"Nasdaq continues to be the underperformer of the group and
more air comes out of that momentum trade," said Peter Kenny,
chief executive of Clearpool Group in New York.
"It is also providing for a degree of doubt to seep into the
market that seems to be resonating with each passing day; in
other words, the sense the market's inevitable move is higher is
being re-examined the more people focus on Nasdaq. It's having a
real impact on market psychology."
Remarks by Federal Reserve Chair Janet Yellen failed to
boost equities. In testimony to the congressional Joint Economic
Committee, Yellen said the central bank would continue to
provide a high degree of monetary policy accommodation, and
cited geo-political turmoil and weak housing data as risks to
the U.S. economy.
Whole Foods Market Inc contributed to the decline as
it tumbled 19.8 percent to $38.47 as the biggest drag on both
the S&P 500 and Nasdaq 100 NDX> indexes after the organic
grocer posted second-quarter results and cut its 2014 outlook.
The Dow Jones industrial average rose 13 points, or
0.08 percent, to 16,414.02, the S&P 500 lost 1.13 points,
or 0.06 percent, to 1,866.59 and the Nasdaq Composite
dropped 41.753 points, or 1.02 percent, to 4,039.006.
According to Thomson Reuters data through Wednesday morning,
of 422 companies in the S&P 500 that have reported earnings,
68.2 percent beat expectations, above the 63 percent average
since 1994 and 66 percent beat rate for the past four quarters.
Profits are expected to rise 5 percent this quarter, down
from 6.5 percent estimated at the start of the year, but above
the low of 0.6 percent in mid-April, according to Thomson
U.S. nonfarm productivity fell at its fastest pace in a year
in the first quarter due to severe weather, leading to the
largest gain in unit labor costs in more than a year.
Productivity fell at a 1.7 percent annual rate in the quarter,
the Labor Department said.
Mondelez International Inc was a bright spot, as
shares jumped 7.7 percent to $37.92 after it posted
first-quarter earnings and said it reached a deal with Dutch
coffee and tea company D.E Master Blenders 1753 BV.
Electronic Arts also moved higher, as shares surged
15.5 percent to $32.40 after the video game publisher posted
quarterly profit and revenue that beat expectations.
(Editing by Bernadette Baum)