Investing.com - U.S. stocks closed mixed Thursday, after spiking higher on China slashing interest rates, due to Ben Bernanke’s lukewarm stimulus comments.
At the close of U.S. trade, the Dow Jones Industrial Average climbed 0.37%, the S&P 500 index fell 0.01%, while the Nasdaq Composite index gave back 0.48%.
An early rally was sparked after the People's Bank of China said it will lower benchmark interest rates by 0.25%, effective Friday, in a bid to bolster growth in the world’s second largest economy and alleviate the effects of the global economic slowdown.
However, equities turned lower when, in testimony to a congressional committee in Washington, Bernanke stated that the Fed remained "prepared to take action" to protect the U.S. economy and financial system if stresses on the financial system escalate, but stopped short of indicating what these actions might be.
On Wednesday, the central bank’s Vice-Chairman Janet Yellen laid out the case for more easing to bolster a fragile economy as financial turmoil mounts in the euro zone.
In the tech sector, Apple saw shares rise 0.62% amid reports it is planning to add Baidu’s search engine – China’s biggest Internet search engine – on iPhones in China.
Meanwhile, computer technology firm Oracle added 0.20% after launching a new suite of cloud-based products on Wednesday to try to catch up with smaller but nimbler vendors, such as Salesforce.com, in the business of hosting and distributing software via the Internet.
Financial stocks were also broadly higher, as shares in Citigroup surged 2.54% and Bank of America climbed 1.57%, while JP Morgan and Goldman Sachs rallied 1.39% and 1.05% respectively.
Morgan Stanley was also up 0.93%. Bloomberg reported earlier that, despite being the best-capitalized Wall Street firm, the financial services group still faces the largest potential downgrade from Moody’s Investors Service.
Chesapeake also added to gains, as shares jumped 1.26% after a federal judge said it will not have to delay its scheduled annual meeting on Friday to allow shareholders more time to investigate the financial dealings of the natural gas company's embattled chief executive.
Other energy stocks were close behind. Exxon Mobil saw shares advance 0.86% and Chevron soared 1.91%.
Elsewhere, Green Mountain Coffee Roasters gained 1.47% as the company was reportedly in talks with pharmaceutical companies about developing drinks for its Keurig brewers that it hopes could aid the health of consumers and company margins.
On the downside, Lululemon Athletica slumped 8.65% after the yoga-apparel retailer posted higher quarterly profit, but said same-store sales growth would slow.
Also in earnings, Men's Wearhouse plunged 15.10% after the men's clothing retailer posted quarterly results that missed estimates and projected weak earnings in the upcoming quarter.
At the close of European trade, the EURO STOXX 50 climbed 0.25%, France’s CAC 40 rallied 0.42%, while Germany’s DAX 30 added 0.82%.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 2 fell by 12,000 to a seasonally adjusted 377,000, in line with expectations.
Investors are awaiting the Chinese CPI and the U.S. and Canadian trade balance on Friday.
At the close of U.S. trade, the Dow Jones Industrial Average climbed 0.37%, the S&P 500 index fell 0.01%, while the Nasdaq Composite index gave back 0.48%.
An early rally was sparked after the People's Bank of China said it will lower benchmark interest rates by 0.25%, effective Friday, in a bid to bolster growth in the world’s second largest economy and alleviate the effects of the global economic slowdown.
However, equities turned lower when, in testimony to a congressional committee in Washington, Bernanke stated that the Fed remained "prepared to take action" to protect the U.S. economy and financial system if stresses on the financial system escalate, but stopped short of indicating what these actions might be.
On Wednesday, the central bank’s Vice-Chairman Janet Yellen laid out the case for more easing to bolster a fragile economy as financial turmoil mounts in the euro zone.
In the tech sector, Apple saw shares rise 0.62% amid reports it is planning to add Baidu’s search engine – China’s biggest Internet search engine – on iPhones in China.
Meanwhile, computer technology firm Oracle added 0.20% after launching a new suite of cloud-based products on Wednesday to try to catch up with smaller but nimbler vendors, such as Salesforce.com, in the business of hosting and distributing software via the Internet.
Financial stocks were also broadly higher, as shares in Citigroup surged 2.54% and Bank of America climbed 1.57%, while JP Morgan and Goldman Sachs rallied 1.39% and 1.05% respectively.
Morgan Stanley was also up 0.93%. Bloomberg reported earlier that, despite being the best-capitalized Wall Street firm, the financial services group still faces the largest potential downgrade from Moody’s Investors Service.
Chesapeake also added to gains, as shares jumped 1.26% after a federal judge said it will not have to delay its scheduled annual meeting on Friday to allow shareholders more time to investigate the financial dealings of the natural gas company's embattled chief executive.
Other energy stocks were close behind. Exxon Mobil saw shares advance 0.86% and Chevron soared 1.91%.
Elsewhere, Green Mountain Coffee Roasters gained 1.47% as the company was reportedly in talks with pharmaceutical companies about developing drinks for its Keurig brewers that it hopes could aid the health of consumers and company margins.
On the downside, Lululemon Athletica slumped 8.65% after the yoga-apparel retailer posted higher quarterly profit, but said same-store sales growth would slow.
Also in earnings, Men's Wearhouse plunged 15.10% after the men's clothing retailer posted quarterly results that missed estimates and projected weak earnings in the upcoming quarter.
At the close of European trade, the EURO STOXX 50 climbed 0.25%, France’s CAC 40 rallied 0.42%, while Germany’s DAX 30 added 0.82%.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 2 fell by 12,000 to a seasonally adjusted 377,000, in line with expectations.
Investors are awaiting the Chinese CPI and the U.S. and Canadian trade balance on Friday.