U.S. stocks waver narrowly amid Yellen's testimony

U.S. stocks fluctuated in a tight range in the morning session Tuesday, as investors digested comments from Federal Reserve Chair Janet Yellen.

By midday, the Dow Jones Industrial Average rose 12.75 points, or 0.06 percent, to 20,424.91. The S&P 500 edged down 0.24 point, or 0.01 percent, to 2,328.01. The Nasdaq Composite Index inched up 0.78 point, or 0.01 percent, to 5,764.74.

Yellen gives her semiannual monetary policy testimony before the Senate Banking Committee Tuesday morning. It marks the first time Yellen testifies following President Donald Trump's election.

In prepared remarks Yellen said that waiting too long to raise interest rates would be "unwise," given the rise in inflation and economic growth.

At the Fed's policy meeting concluded Feb. 1, the U.S. Federal Reserve left the benchmark interest rates unchanged and offered no hint on when it might move. At its December meeting, the Fed raised the benchmark interest rate by 25 basis points, the first and only time in 2016.

On the economic front, the Producer Price Index for final demand increased 0.6 percent in January, seasonally adjusted, beating market consensus of 0.3 percent, the U.S. Labor Department reported Tuesday.

"A 12.9 percent surge in gasoline prices caused the headline jump of 0.6 percent, the most since September 2012. Given that most of the upward price pressure is the result of raw materials prices returning from the depths of last year, the longer term market reaction continues to be wary but not alarmed," said Jay Morelock, an economist at FTN Financial.

On Monday, all three major indices extended their record run as Trump's comments on tax cuts last week ignited investor euphoria. Enditem