U.S. stock indexes edged lower in in early trading Friday ahead of a speech by Federal Reserve Chair Janet Yellen later in the day. Investors will be listening for clues on whether the central bank will raise interest rates again later this month. Declines in makers of consumer goods outweighed gains in banks and health care stocks.
KEEPING SCORE: The Dow Jones industrial average was little changed at 21,004 as of 10:09 a.m. Eastern Time. The Standard & Poor’s 500 index fell 2 points, or 0.1 percent, to 2,379. The Nasdaq composite index slid 5 points, or 0.1 percent, to 5,856.
LOOKING FOR CLUES: Several Fed officials have signaled in recent days that the central bank is ready to resume raising interest rates as soon as this month, citing a strengthening U.S. economy, signs of higher inflation and a surging stock market. Investors will be listening for Yellen’s view later Friday, when she gives a speech in Chicago on the Fed’s economic outlook. Traders in futures markets have already put the probability of a rate hike at 75 percent, according to data tracked by the CME Group. Just last week, that probability had been pegged at well below 50 percent.
BOOST FOR BANKS: Several banks were trading higher on hopes that the Fed will raise interest rates, which would help banks earn more from lending. Citizens Financial Group added 36 cents, or 1 percent, to $38.41.
BIG-BOX DISAPPOINTMENT: Costco slid 3.8 percent after the warehouse club operator reported earnings that missed estimates. Costco also said it is going to raise its membership fees. The stock fell $6.80 to $171.18.