Stock Futures Mixed Ahead of Day Two of Yellen's Congressional Testimony

New York (Feb 15)  Stock futures struggled for direction on Wednesday on day two of Federal Reserve Chair Janet Yellen's testimony to Congress.

S&P 500 futures were slightly lower, Dow Jones Industrial Average futures added 0.16%, and Nasdaq futures crept 0.02% higher.

Yellen will address the House of Representatives on Wednesday, a day after delivering her semi-annual monetary policy testimony before the Senate Banking Committee. Yellen played the part of both dove and hawk in her remarks on Capitol Hill Tuesday, reiterating that rate hikes would be gradual but pointing out that it would be "unwise" to wait too long to hike again.

Market expectations for a rate hike at next month's meeting remain slim, but the outlook for the rest of the year is murkier. The Fed has expressed a more hawkish lean in recent months as inflation trends toward the central bank's 2% target and the U.S. economy nears full employment.

"Regarding the outlook for monetary policy, we view her remarks as indicating a low probability of a rate hike in March," Barclays analysts wrote in a note. "We see it as consistent with 'a few' rate increases this year that the chair referenced in her January speech and the committee projected in December."

Futures indicate markets expect a 43% chance of at least three hikes this year, according to CME Group. The chances of at least three moves in 2017 sat at 33% on Monday.

Boston Fed President Eric Rosengren will deliver the keynote speech at the New York Association Economics Luncheon on Wednesday, Philadelphia Fed President Patrick Harker will discuss the economic outlook at La Salle University, and New York Fed President William Dudley will speak at the Cornell College of Business Annual New York City Prediction Event. 

Source: The Street