* Yellen to give testimony in Washington at 10:00 a.m. ET
* Market underestimating pace of rate hikes - Fed's Lacker
* GM jumps on talks of selling its Europe Opel unit
* Cynosure surges on Hologic's $1.65 bln takeover offer
* Indexes down: Dow 0.01 pct, S&P 0.06 pct, Nasdaq 0.15 pct
(Updates to open)
By Yashaswini Swamynathan
Feb 14 U.S. stocks were little changed on
Tuesday, with the "Trump rally" pausing ahead of a testimony by
Federal Reserve Chair Janet Yellen that will be scrutinized for
clues on the timing of the next interest rate hike.
While President Donald Trump's pro-business stance sparked a
record-setting rally in equities, he has given scant detail on
his policies, giving the Fed limited visibility on the direction
of the economy.
Richmond Fed President Jeffrey Lacker said the central bank
will likely have to raise rates more rapidly than the markets
currently expect given that any new policies by the Trump
administration, while uncertain, will force the Fed's hand.
The Fed in December projected three rate hikes this year.
Currently, traders have priced in a mere 17 percent chance of a
rate move in March, despite a spate of strong economic data
including a robust labor market and improving inflation.
Yellen starts her testimony before the Senate Banking
Committee at 10:00 a.m. ET (1500 GMT).
"The market is pricing in good times ahead but the question
is whether the administration is going to be able to deliver on
the promises made," said Andre Bakhos, managing director at
Janlyn Capital in Bernardsville, New Jersey.
"The world listens to what Yellen has to say and her speech
does have a potential to create an interesting reality check."
At 9:35 a.m. ET the Dow Jones Industrial Average was
down 2.72 points, or 0.01 percent, at 20,409.44. The S&P 500
was down 1.57 points, or 0.06 percent, at 2,326.68 and
the Nasdaq Composite was down 8.88 points, or 0.15
percent, at 5,755.08.
The S&P on Monday topped $20 trillion for the first time
ever, the culmination of a rally that started Thursday after
Trump vowed to make a major tax announcement soon.
Nine of the 11 major S&P sectors were lower on Tuesday, with
technology and consumer staples weighing the
General Motors was the top gainer on the S&P, rising
3.8 percent after Peugeot-owner PSA Group said it is
in talks to buy GM's European Opel business.
The prospects of sector consolidation caused Fiat to jump
3.3 percent, while Ford gained 0.7 percent.
Cynosure jumped 27.9 percent to $65.87 after
Hologic said it would acquire the medical aesthetics
company for $1.65 billion. Hologic fell 2.6 percent to $38.89.
Declining issues outnumbered advancers on the NYSE by 1,499
to 1,049. On the Nasdaq, 1,393 issues fell and 805 advanced.
The S&P 500 index showed 14 new 52-week highs and no new
lows, while the Nasdaq recorded 31 new highs and nine new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by