June 07 - China's first rate cut since 2008 helped lift stocks but disappointing comments from the Fed chairman took some of those gains off the table. Bobbi Rebell reports.
PLEASE NOTE: THIS EDIT CONTAINS 4:3 MATERIAL Surprise news that China's central bank cut rates helped lift stocks Thursday. There was a mid-session hiccup though after comments from Fed Chairman Ben Bernanke dimmed hopes the central bank would take more pro-active action to boost the US economy. Moody's Capital Markets Group Chief Economist John Lonski: SOUNDBITE: JON LONSKI, CHIEF ECONOMIST, MOODY'S CAPITAL MARKETS GROUP (ENGLISH) SAYING: "I think the Fed wants to see a little bit more data on the labor market. The Fed is less than convinced that the much smaller than anticipated gain by payrolls in May is a sign of things to come." That rate cut in China- the world's #2 economy- boosted shares of US companies linked to China's commodity hungry industrial complex. The unexpected move also bolstered hopes other central banks will do more to stimulate the global economy Stocks showed little reaction when Fitch downgraded Spain's credit rating to BBB with a negative outlook. That's just 2 notches away from junk status. The number of Americans lining up for jobless benefits fell last week for the first time since April. Initial claims dropped by 12,000, hinting that the recent slowdown in hiring may be temporary. Lululemon may be losing some of its muscle. The trendy yoga wear retailer warned sales are going to slow down this quarter- sending its stock tumbling. Here's how the final numbers looked: Gains were limited by Bernanke's comments and stocks were mixed. And in Europe, all the major indexes ended higher but off their session peaks. Bobbi Rebell, Reuters.