Stocks churn on mixed central bank action

Written By limadu on Kamis, 04 April 2013 | 22.16

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NEW YORK (CNNMoney)

First out of the gate was Japan's central bank, which announced plans to expand its stimulus program in an effort to breathe life into the country's flagging economy.

The news was welcomed by investors. Japan's Nikkei reversed early losses and closed 2.2% higher, the yen weakened against the dollar and the yield on Japanese 10-year notes fell to their lowest level since 2003.

Next up: the Bank of England left rates at 0.5% and maintained its asset purchasing program. And finally, the European Central Bank also kept rates steady at 0.75%.

"Central banks, central banks, central banks. That's what people are watching this morning," said Paul Powers, head of trading at Raymond James. "Japan delivered, but the ECB fell flat."

The Dow Jones Industrial Average and the S&P 500 gained 0.3%. The Nasdaq was virtually flat.

Four Fed officials are also due to speak Thursday, including Federal Reserve vice chair Janet Yellen, who is delivering a speech at a Society of American Business Editors and Writers conference in Washington.

Related: Fear & Greed index edging toward neutral

Weak U.S. economic data: The Labor Department said that initial jobless claims rose to 385,000 last week. That's more than the 345,000 analysts had expected and comes one day ahead of the government's closely watched monthly jobs report.

Economists expect 192,000 jobs to have been added in March, according to Briefing.com.

What's moving: Shares of Best Buy (BBY, Fortune 500) surged after the retailer announced that it will feature booths selling Samsung products at more than 1,400 U.S. stores.

Lululemon Athletic (LULU) said its chief product officer, Sheree Waterson, was leaving, effective April 15. The announcement comes after Lululemon issued a recall last month of unintentionally see-through yoga pants.

Shares of Carnival Corp. (CCL) slumped more than 2%, a day after the troubled cruise liner's Triumph broke free of its dock in Mobile, Ala.

Investors will also be monitoring an Android-related press event hosted by Facebook (FB) and scheduled to begin at 1 p.m. ET. Industry watchers have speculated that the social network could reveal its own Android-based smartphone.

Related: Bitcoin ATMs coming soon

European markets were mixed in afternoon trading. Exchanges in Hong Kong and Shanghai were closed for a holiday.

The dollar rose against the euro and the British pound.

Oil and gold prices dropped.

The price on the 10-year Treasury yield rose, pushing the yield down to 1.78% from 1.81% late Wednesday. To top of page

First Published: April 4, 2013: 9:46 AM ET


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