US STOCKS-Wall St hovers near record, eyes on Yellen; Cisco drops

Reuters

* Senate for banking committee hearing on Yellen underway

* Cisco shares tumble after revenue warning

* Walmart falls, Kohl's shares slide after results

* Dow, S&P 500 up 0.1 pct, Nasdaq off 0.2 pct

By Rodrigo Campos

NEW YORK, Nov 14 (Reuters) - U.S. stocks were up modestlyThursday, holding gains from late in the previous session whichcame ahead of the release of remarks from Federal Reserve chairnominee Janet Yellen, while a slide in Cisco shares weighed onthe technology sector.

Cisco Systems shares were on track to post theirworst day since Feb. 10, 2011, slumping 12 percent to $21.11after it warned its revenue would dive as much as 10 percentthis quarter and keep contracting until after the middle of2014.

The S&P tech sector dropped 0.9 percent and thetech-heavy Nasdaq Composite underperformed other major indexes.

Wal-Mart shares fell 0.6 percent to $78.40 after theworld's largest retailer reported lower-than-expected quarterlysales, and Kohl's slid 8.5 percent to $56.30 after thedepartment store chain reported weaker-than-expected results.

Following Wednesday's close at record highs on the S&P andDow, market sentiment was hurt by "the reality of Cisco andWalmart," said Rick Meckler, president of investment firmLibertyView Capital Management in Jersey City, New Jersey.

The Senate Banking Committee is holding a hearing on thenomination of the Fed's current vice chair, Janet Yellen, tohead the U.S. central bank.

Yellen's remarks, released Wednesday, were perceived by themarket as dovish and supportive of the policies that have helpedthe S&P 500 rally 24.9 percent so far this year.

"I don't expect in the Q&A (Thursday morning) to hearanything particularly surprising," said Meckler.

"This market for a while has been about a lack ofalternatives for investors, that's what super low interest ratesrepresent. We've gone a long way but it's hard to keep itgoing."

The Dow Jones industrial average rose 9.54 points or0.06 percent, to 15,831.17, the S&P 500 gained 1.68points or 0.09 percent, to 1,783.68 and the Nasdaq Composite dropped 8.046 points or 0.2 percent, to 3,957.529.

Futures barely reacted to data showing the number ofAmericans filing new claims for unemployment benefits fell 2,000to a seasonally adjusted 339,000. Claims for the prior week wererevised to show 5,000 more applications than previouslyreported.

Overseas, data showed the euro zone economy grew at a slowerthan expected 0.1 percent rate in the third quarter, which couldhurt appetite for equities.

Fairholme Capital Management proposed to buy the insurancebusinesses of Fannie Mae and Freddie Mac, amove that seeks to resolve the uncertain future of the mortgagefinanciers.

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