Midday Report: FedEx Offers Cautious Outlook; U.S. Stocks Climb

U.S. stocks bounced as Federal Reserve Chair Janet Yellen continued to sound a dovish call, though pointed to recent economic weakness as likely transitory. Yellen said labor market weakness in May was likely a leftover from a rough start to the year. Existing-home sales in May rose to their highest level since February 2007 and prices notched their best level ever. Tighter inventory, higher demand and lower interest rates have boosted activity in the sector. Crude oil gave up earlier gains after weekly inventories data showed a far-smaller decline than analysts had expected. A recent recovery to the $50 a barrel level was largely driven by decreasing U.S. production. FedEx (FDX) - Get Report declined after issuing cautious guidance for the next 12 months. The delivery company also reported a loss in its recent quarter, partially tied to large pension costs. TheStreet's Keris Lahiff reports from Wall Street.