Futures rise on Chinas rate slash

Mortgage bond prices opened higher Thursday morning erasing the small losses seen Wednesday afternoon. In news released this morning, weekly jobless claims printed at 377K. Continuing claims, a summation of all receiving benefits, printed at 3,293K. Expectations were for initial claims to fall 8K to 375K and continuing claims to increase 8K to 3,250K. Traders are now waiting for stocks to begin trade at 9:30 am ET. Federal Reserve Chairman Ben Bernanke will testify on the economy in front of the Joint Economic Committee starting at 10:00 am ET. His testimony will be closely watched following the comments yesterday from Janet Yellen who warned on the risks of the US economy and possible future Fed action. Mrs. Yellen carries some significant weight at the Fed. A notable fact, the next Fed meeting (June 19-30) takes place right after the elections in Greece. Speaking of central banks, China lowered benchmark interest rates on loans and deposits in a bid to support growth. A string of disappointing economic data recently has stung China. After a decade of explosive growth, economic activity in China appears to be slowing. Since China is a big purchaser of raw materials and other goods from around the globe, traders fear slowdown in Beijing will be felt around the world.