Equities advanced earlier today as European governments will jump-start as much as 100 billion euros ($123 billion) in emergency loans to shore up Spain’s banks and may move the costs off the Spanish government’s balance sheet.
“The news out of Europe is another step in the right direction, but there’s a long way to go there,” said John Canally, an economist and investment strategist at LPL Financial Corp. in Boston. The firm oversees about $330 billion. “Then there’s the earnings season here. As always, the forecast matters a lot more than what actually happened.”
Eight out of 10 groups in the S&P 500 retreated today as industrial, commodity and technology shares lost at least 1.1 percent. The Morgan Stanley Cyclical Index of companies most- tied to the economy sank 1.6 percent. The Philadelphia Semiconductor Index (SOX) slumped 2.3 percent.
AMD tumbled 11 percent, the most since September, to $4.99. Demand is being hurt by slower growth in China and a worsening economic climate in Europe. The chipmaker also suffers as consumers shun PCs in favor of tablets, which rely on semiconductors made by other companies.