The Dow Jones added 46 points to 12,461 after being up as many as 140 points in early trading. The S&P 500 gave up less than a point to end at 1315 and the NASDAQ closed 14 points lower at 2831. Composite volume on the NYSE was 3.9 billion shares with declining issues besting advancers 7-6. The NASDAQ was 7-5 negative on issues.
Stocks rallied in the opening hours after an unexpected rate cut in China and after U.S. weekly jobless claims topped projections. Despite early strength, equities moved lower into the close after Ben Bernanke’s testimony gave no hint of further easing from the Fed.
Industrial stocks posted the largest gains as China’s Central Bank action boosted optimism on global growth. Shares of United Technologies gained $1.79 to $75.43 and Caterpillar added 48 cents to $87.14.
Financials turned negative in the closing hour of trading. Bank of America fell 22 cents to $7.42 and Morgan Stanley shed 52 cents to $13.42. On the earnings front, shares of Lululemon gave up $6.18 to $63.84 after the company forecasted its second quarter earnings below analysts’ estimates.
In bondland, Treasuries were mixed along the curve with the 10-year note up 7 ticks to yield 1.64% and the 30-year bond down 3 ticks to yield 2.75%.