As reported by Bloomberg’s Rita Nazareth, U.S. stocks advanced, erasing earlier losses, as speculation that China may invest in Italy triggered a rally that lifted the Dow Jones Industrial Average more than 200 points in the last 45 minutes of trading. How China is expanding its reach to developed and emerging economies will be discussed at Golden Networking‘s China Leaders Forum 2011, October 7.
Nine out of 10 groups in the Standard & Poor’s 500 Index rallied, led by technology and financial shares. Bank of America Corp., the biggest U.S. lender by assets, gained 1 percent on plans to eliminate 30,000 jobs in the next few years. NetLogic Microsystems Inc. surged 51 percent after Broadcom Corp. agreed to buy the semiconductor company for $3.7 billion in cash.
The S&P 500 advanced 0.7 percent to 1,162.27 at 4 p.m. in New York, after retreating 1.6 percent earlier. The Dow increased 68.99 points, or 0.6 percent, to 11,061.12.
“If China is willing to invest in Italy, maybe that’s the solution,” Mark Bronzo, who helps manage $26 billion at Security Global Investors in Irvington, New York, said in a telephone interview. “It introduces a new source of capital that people weren’t considering outside Europe. Maybe the other countries are going to be able to find capital on their own. That’s what we need to see to shore up these countries.”