US stocks hit record highs amid Yellen's remarks, data

U.S. stocks continued to be on a record-setting trajectory for the past week, with all three major indices closing at record highs for three times out of the five sessions, as investors digested Federal Reserve Chair Janet Yellen's remarks and a batch of economic data from the country.

For the week, all three major indices posted solid gains, with the Dow, the S&P 500 and the Nasdaq jumping 1.7 percent, 1.5 percent and 1.8 percent, respectively.

Yellen said on Tuesday that the Fed will consider whether to raise interest rates at upcoming meetings.

"At our upcoming meetings, the (Federal Open Market) Committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further adjustment of the federal funds rate would likely be appropriate," said Yellen in her testimony before the Senate Banking, Housing and Urban Affairs Committee.

She gave an upbeat assessment of the economy, saying that the economy has continued to make progress toward the maximum employment and price stability objectives.

On the economic front, the Producer Price Index for final demand increased 0.6 percent in January, seasonally adjusted, beating market consensus of 0.3 percent, the U.S. Labor Department reported Tuesday.

The Consumer Price Index (CPI) for all urban consumers increased 0.6 percent in January on a seasonally adjusted basis, beating market consensus of 0.3 percent, the U.S. Labor Department reported Wednesday.

Over the last 12 months, the all items index rose 2.5 percent before seasonal adjustment.

The Commerce Department announced Wednesday that advance estimates of U.S. retail and food services sales for January 2017 came in at 472.1 billion U.S. dollars, an increase of 0.4 percent from the previous month and above market estimates of 0.1 percent.

Investors were also encouraged by remarks from U.S. President Donald Trump. He continued to tout his economic agenda in a meeting with retail CEOs on Wednesday.

He said the administration remains "focused on the issues that will bring economic growth. That's what we're all about," according to the CNBC.

U.S. stocks have posted sharp gains since Trump won the presidential election last November, as investors bet that he would pursue massive corporate tax cuts, deregulation and infrastructure spending.

Moreover, the earnings season was in spotlight. The latest data from Thomson Reuters showed that the S&P 500 companies' blended earnings in the fourth quarter of 2016 are expected to rise 7.3 percent year on year, while the revenues are forecast to increase 4.3 percent.

The market will be closed Monday for the Presidents Day holiday.

Source: Xinhua