Stocks end mostly lower after Fed’s Janet Yellen speaks

Stocks ended mostly lower Friday after Federal Reserve officials said the case has strengthened for raising interest rates above the super-low levels that have helped fuel a seven-year bull market.

Major U.S. indexes initially climbed after a speech by Fed chief Janet Yellen that was bullish on the economy but gave no timetable for future rate increases. Then investors began to have second thoughts, wondering if an increase was possible as early as next month, and buyers turned into sellers.

By the close of trading, seven of the 10 sectors of the Standard and Poor’s 500 index had fallen, led by a 2.1% drop in utilities. Investors frustrated with low-yielding bonds have flocked to utilities for their steady dividends, but higher rates would make those stocks less attractive.

The S&P 500 slipped 3.43 points, or 0.2%, to 2,169.04. The Dow Jones industrial average fell 53.01 points, or 0.3%, to 18,395.40. The Nasdaq composite rose 6.71 points, or 0.1%, to 5,218.92.

By the end of the day both stocks and bonds had reversed, with the yield on the 10-year Treasury note rising to 1.62% from 1.58% late Thursday.

Lisa Kopp, senior vice president at U.S. Bank Wealth Management, said she wasn’t surprised by the selling given the “jitteriness” in the markets.

Also Friday, a report from the Commerce Department showed the nation’s gross domestic product for the second quarter rose by a revised 1.1%, slightly lower than initially forecast.

Since exiting the recession in summer 2009, the U.S. economy has been growing sluggishly, making it the slowest recovery since World War II.

Among stocks making moves Friday, design software company Autodesk jumped 8% to $68.87 after reporting a small profit, beating expectations of a loss.

GameStop dived more than 10% to $28.74 after the video game retailer cut its forecast for a key sales figure and reported revenue that was significantly lower than analysts expected.

Aceto plunged more than 21% to $20.16 after the company, which sells pharmaceutical ingredients, reported earnings and revenue that fell far short of analysts’ forecasts.

Earnings per share for companies in the S&P 500 index are expected to fall 1.8% in the second quarter, according to S&P Global Market Intelligence. That would be the fourth quarter in a row of drops.

In overseas markets, Britain’s FTSE 100 rose 0.3%, Germany’s DAX gained 0.6% and France’s CAC 40 climbed 0.8%.

In Asia, Japan’s Nikkei 225 fell 1.2% after consumer prices fell the most in three years in July. Hong Kong’s Hang Seng index rose 0.4%.

Benchmark U.S. crude oil rose 31 cents to $47.64 a barrel. Brent crude, used to price oil internationally, rose 25 cents to $49.92 a barrel.

Wholesale gasoline was little changed at $1.52 a gallon, heating oil slipped 1 cent to $1.50 a gallon, and natural gas rose 2.5 cents to $2.871 per 1,000 cubic feet.

The dollar rose to 101.86 yen from 100.57 yen. The euro fell to $1.1183 from $1.1281.

Gold rose $1.30 to $1,325.90 an ounce, silver rose 13 cents to $18.75 an ounce and copper was little changed at $2.08 a pound.

UPDATES:

2:55 p.m.: This article was updated with closing prices and additional information.

9:25 a.m.: This article was updated with more recent market information.

7:55 a.m.: This article was updated with more recent market information.

This article was originally published at 6:55 a.m.