NEW YORK (CNNMoney) -- U.S. stocks ended mixed Thursday, trimming gains from earlier in the day, as comments from Ben Bernanke tempered hopes for immediate stimulus by the Federal Reserve.
The Dow Jones industrial average (INDU) rose 46 points, or 0.4%, to end at 12,461. The S&P 500 (SPX) closed little changed at 1,315. The Nasdaq (COMP) fell 14 points, or 0.5%, to 2,831.
Stocks opened sharply higher after China's central bank cut its range of lending and deposit rates by a quarter percentage point in an effort to address the slowdown in the nation's manufacturing sector.
But the indexes pulled back after Fed chairman Ben Bernanke told Congress that the central bank stands ready to act, but gave no indication that additional easing is imminent.
"There has been a lot of speculation in the market about a coordinated central bank intervention," said Ryan Larson, a senior equity trader at RBC Global Asset Management. However, he said the optimism has faded "now that it has become apparent that the Fed is ready to act, but is holding off for the time being."
Bernanke's testimony came after other Fed officials, including Vice Chair Janet Yellen and San Francisco Fed president John Williams, indicated that more stimulus by the central bank might be necessary to boost the sputtering U.S. economy.
Investors have been hopeful that the Fed will extend Operation Twist -- its program of swapping short-term bonds for ones with longer duration to help keep 10-year and 30-year bond yields low -- or launch a third round of asset purchases known as quantitative easing.
Meanwhile, the Spanish government held a successful bond auctionThursday, two days after its Treasury minister warned the country was at risk of being shut out of financial markets.
But in a sign of the nation's ongoing banking and economic problems, ratings agency Fitch downgraded Spain's credit rating to "BBB" from "A."
The debt crisis in Europe "poses significant risks to the U.S. financial system and economy, and must be monitored closely," said Bernanke.
The dollar rose against the yen, but slipped against the euro and British pound.
Oil for July delivery fell 20 cents to end at $84.82 a barrel.
Gold futures for August delivery fell $46.20 to settle at $1,588 an ounce.
No comments:
Post a Comment