US STOCKS-Wall St trims gains after Yellen remarks

viernes 27 de mayo de 2016 13:55 GYT

* Second reading of Q1 GDP at 0.8 pct vs. 0.9 pct est.

* GameStop drops after forecast falls short of expectations

* Ulta Salon jumps after raising full-year forecast

* Indexes up: Dow 0.01 pct, S&P 0.14 pct, Nasdaq 0.36 pct (Updates to early afternoon)

By Tanya Agrawal

May 27 (Reuters) - Wall Street trimmed gains in early afternoon trading on Friday after Federal Reserve Chair Janet Yellen said it would likely be appropriate to raise rates "in the coming months."

Investors are looking for clues on the timing of the next rate hike from Yellen's speech, which comes after comments from several policymakers earlier this week that the U.S. economy has the capacity to absorb a rate hike.

"The economy is continuing to improve ... growth looks to be picking up," Yellen said in remarks in Boston. "If that continues and if the labor market continues to improve, and I expect those things to occur ... in the coming months such a move would be appropriate."

Yellen said she is concerned that the Fed has little room to cut rates if there is an adverse shock to the economy   Continuación...