Bank stocks surge again, leading broader market higher

NEW YORK (AP) — U.S. stocks are rising today as banks resume a steep upward climb and retailers move higher. Federal Reserve Chair Janet Yellen emphasized that the Fed plans to raise interest rates, which will help banks make more money from lending. Companies that make and sell food and household goods are lagging the market after Wal-Mart and Smucker announced disappointing sales.

The Dow Jones industrial average added 4 points to 18,872 as of 2:25 p.m. Eastern. The Standard & Poor's 500 index rose 8 points, or 0.4 percent, to 2,184. The Nasdaq composite added 31 points, or 0.6 percent, to 5,325.

Yellen told Congress that the economy is improving and added that that if the Fed keeps waiting now and raises rates too quickly later, that increases the risk of a recession.

Investors already expected the Fed to raise interest rates when it meets in mid-December, and they felt Yellen's comments confirmed that higher rates are coming.

Bond prices slipped. The yield on the 10-year U.S. Treasury note rose to 2.28 percent from 2.22 percent. Bond yields rise when investors expect higher interest rates and inflation.