Feb. 10 (Bloomberg) -- U.S. stock-index futures retreated, following the Standard & Poor’s 500 Index’s largest weekly gain this year, before Federal Reserve Chairman Janet Yellen delivers her first report on monetary policy to lawmakers tomorrow.
Qualcomm Inc. slid 4.3 percent in early New York trading after HTC Corp. said that it is open to chipset providers other than the San Diego-based company. Sohu.com Inc. declined 3.5 percent after posting quarterly revenue that fell short of analysts’ estimates. Yelp Inc. jumped 13 percent after a person familiar with the matter said that Yahoo! Inc. will use the reviews provider to add context to its search results.
Futures on the S&P 500 expiring in March lost 0.3 percent to 1,788.5 at 7:25 a.m. in New York. Dow Jones Industrial Average contracts retreated 41 points, or 0.3 percent, to 15,698. The S&P 500 rallied 2.6 percent in the final two days of last week as the index posted its first back-to-back gains of at least 1 percent in more than a year.
“When Fed Chair Janet Yellen delivers the monetary policy report to the House, she will surely indicate that the economy remains fragile, but is growing,” Kit Juckes, a global strategist at Societe Generale SA in London, wrote in a note today. “Policy is set to remain on its current course.”
Yellen will speak on monetary policy and the outlook for the economy tomorrow for the first time after being sworn in as the central bank’s head on Feb. 3. The Fed chairman will testify before the House Financial Services Committee in a semi-annual report. The central bank has already decided to slow the pace of its asset-purchase program twice, reducing its monthly buying of bonds to $65 billion from $85 billion in 2013.
The Fed is studying employment data to determine when next to taper its stimulus program. A Labor Department report on Feb. 7 showed that payrolls rose by a less-than-projected 113,000 in January, while the unemployment rate unexpectedly dropped to the lowest level in more than five years.
Investors are also awaiting financial results this week from 56 companies in the S&P 500, including Cisco Systems Inc. and American International Group Inc. Of the index members to have reported their results this season, 76 percent beat analysts’ profit estimates, while 66 percent exceeded sales forecasts, data compiled by Bloomberg show.
Profit for the benchmark’s stocks rose by 8.3 percent in the fourth quarter of 2013 and revenue by 2.7 percent, according to analyst estimates compiled by Bloomberg.
Qualcomm dropped 4.3 percent to $71.21 in early trading. HTC said after reporting its earnings today that it may turn to different suppliers for chipsets. The Taiwanese smartphone maker also said it will continue to work well with Qualcomm.
Sohu.com lost 3.5 percent to $69. The owner of China’s third-largest search engine posted revenue for the three months ended Dec. 31 of $385 million. That missed the $387.7 million average analyst estimate.
Hasbro Inc. slid 3 percent to $48.57. The maker of Nerf and Transformers toys reported fourth-quarter earnings of $1.12 a share. That fell short of the lowest analyst estimate of $1.15 and the average projection of $1.22.
Yelp rallied 13 percent to $100.80. Yahoo, the U.S.’s biggest Web portal, will include Yelp’s ratings of local businesses in its search results, according to a person with knowledge of the deal, who asked not to be identified because the matter is private. The Wall Street Journal reported on Feb. 9 that the service may start within weeks. Yahoo advanced 1.7 percent to $37.85.
St. Jude Medical Inc. climbed 2.4 percent to $63.51. The maker of defibrillators and pacemakers was raised to outperform at William Blair & Co. and to buy at Stifel Nicolaus & Co. The St. Paul, Minnesota-based company said at an investor day last week it targets mid- to high-single-digit sales growth in 2015.
Legg Mason Inc. added 1 percent to $42.27. Keefe, Bruyette & Woods Inc. raised its rating on the money manager to outperform, the equivalent of buy, from market perform. The firm also raised its one-year price estimate on the Baltimore-based asset manager to $50 a share from $48.