http://www.bloomberg.com/apps/news?pid=20601103&sid=ahACJvR2.VCs&refer=us
By Cristina Alesci and Jeff Kearns
March 3 (Bloomberg) -- U.S. stocks retreated for a fifth day as Federal Reserve Chairman Ben S. Bernanke said the banking system still hasn’t stabilized, offsetting gains in commodity shares on speculation China will boost demand for raw materials.
The early rally was erased after Bernanke, testifying before the Senate Budget Committee, spurred concern that the government won’t be able to shore up a financial system battered by $1.1 trillion in global credit losses.
Mining shares advanced as copper jumped the most in three weeks on speculation that China will buy more raw materials as the country’s 4 trillion yuan ($585 billion) stimulus plan takes effect. The Reuters/Jefferies CRB Index of 19 commodities added 1.7 percent. Freeport-McMoRan rallied $1.92 to $28.41 and Southern Copper Corp. added $1.01, or 7.9 percent, to $13.75.
China’s economy, being dragged down by its worst export slump in more than a decade, will rebound this year, officials said. The government is “confident” of achieving its 8 percent growth target, Minister of Industry and Information Li Yizhong said.
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