Stocks Opened Higher after Yelen Talked Rate Hike

U.S. stocks opened sharply higher on Friday as markets digested Thursday’s speech from Fed Chair Janet Yellen. The Dow Jones Industrial Average lately jumped 173.48 points, or 1.07%, to 16,374.80. The S&P 500 gained 16.02 points, or 0.83%, to 1,948.26. The Nasdaq Composite was up 42.19 points, or 0.89%, to 4,776.67.

Yellen, who spoke after the market closed, may have slightly recalibrated expectations for a rate rise, by saying she personally anticipates a hike this year. Yellen said she expects inflation will return to 2% over the next few years as temporary factors currently holding it down will wane.

The world’s largest economy expanded more than previously forecast in the second quarter, boosted by gains in consumer spending and construction that may help the U.S. withstand a global slowdown. Gross domestic product rose at a 3.9 percent annualized rate, compared with a prior estimate of 3.7 percent, Commerce Department figures showed Friday.

Standard & Poor’s has cut its price forecasts for Brent and US crude oil and the credit rating agency said the revision indicted that it would take longer for prices to recover. S&P cut its 2015 forecast for Brent to $50 and for US crude to $45 a barrel, both down by $5 from its previous forecast.

BlackBerry Ltd. reported a wider-than-expected loss for its fiscal second quarter. The company said it had net income of $51 million, or 10 cents per basic share, in the quarter, after a loss of $207 million, or 39 cents per basic share, in the year-earlier period.

Nike Inc.’s sales rose a better-than-expected 5%, boosted in part by higher average selling prices and strength in its China business. Nike reported a profit of $1.18 billion, or $1.34 a share, up from $962 million, or $1.09 a share, a year earlier.