Early Rally Fades, Stocks End Mixed

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 |  Includes: DIA, QQQ, SPY
by: Midnight Trader
  • Dow Jones Industrial Index up 46.17 (+0.37%) to 12,460.96
  • S&P 500 down 0.14 (-0.01%) to 1,314.99
  • Nasdaq Composite Index down 13.70 (-0.48%) to 2,831.02

GLOBAL SENTIMENT

  • Nikkei 225 up 1.24% (106.19) to 8,639.72
  • Hang Seng Index up 0.85% (157.76) to 18,678.29
  • Shanghai China Composite Index down 0.71% (-16.43) to 2,293.13
  • FTSE 100 up 1.02% (54.85) to 5,438.96

U.S. stock indices closed mixed on Thursday, following a fairly heavy day of data, including the latest unemployment benefit claims and Federal Reserve Chairman Ben Bernanke's testimony before Congress.

Stocks saw some upside starting in the pre-market session when China made a surprise cut in benchmark interest rates. The rally stalled following some bearish statements by Bernanke. However, the Fed chairman did leave the door open for more quantitative easing which prevented any significant change in momentum.

There was little reaction to today's pre-bell jobless claims. According to the Labor Department, first-time claims fell by 12,000 to a seasonally adjusted 377,000 in the week ended June 2. Claims from two weeks ago were revised up to 389,000 from an original reading of 383,000.

Crude futures ended a wobbly session lower; declining by 0.2% to settle at $84.82 a barrel. Gold futures for delivery in August settled down $46.20, or 2.8%, at $1,588.00 an ounce on the Comex division of the New York Mercantile Exchange.

In company news, Comverse Technology (NASDAQ:CMVT) slid following its Q1 report. The company posted Q1 revenue of $343.6 million, a decline from $349.5 million in the year ago quarter and well below the analyst view of $379.7 million on Capital IQ. EPS loss was $0.15, vs. a year ago loss of $0.03 per share and Street estimates of a gain of $0.08 per share. TravelCenters of America LLC (NYSE:TA) jumped after the company announced that it it entered a memorandum of understanding with Shell Oil Products to construct and operate a network of natural gas fueling lanes at TA locations along U.S. Interstate highways.

UPSIDE MOVERS

(+) GNBT, Schedules USFDA end-of-phase II meeting for the AE37 breast cancer vaccine.

(+) CACI, Upgraded to Buy from Neutral at Lazard Capital. Price target is $55.

DOWNSIDE MOVERS

(-) TPX, Downgraded to Neutral from Outperform at Wedbush. Price target lowered to $25 from $72.

(-) PLL, Posts mixed Q3 performance, sets guidance below estimates.

(-) XNPT, Initiated at Outperform by Credit Suisse.