AMD stock surges on split rumors

Shares of Advanced Micro Devices Inc., the second-largest maker of personal-computer processors, surged the most in more than three months on speculation that it was close to announcing plans to split up the company.

Advanced Micro rose 59 cents, or 9%, to $7.12. For the year, the stock is down 5.1%.

Investors are betting that the company will soon announce details of a plan to separate its manufacturing business from its chip design and development operations, according to CRT Capital Group analyst Ashok Kumar. "The Street has been waiting with bated breath."

Chief Executive Hector Ruiz said a year ago he was exploring ways to cut costs and return to profitability in a strategy he dubbed "asset smart."

AMD, based in Sunnyvale, Calif., will hold its annual investor meeting Thursday in Austin, Texas.

AMD reported a sixth straight quarterly loss last month as it struggled to compete with industry leader Intel Corp.

The first-quarter net loss narrowed to $358 million from $611 million a year earlier.

Ambac backs new bond muni issues

Ambac Financial Group Inc., the world's second-largest bond insurer, has backed eight new issues in the municipal bond market since it raised capital to safeguard its credit ratings.

The company said it insured a $46.8-million lease financing deal for the city of Compton and a $62-million Alaska Municipal Bond Bank issue.

Ambac, and competitors such as MBIA Inc., stumbled after expanding from backing debt issued by cities and states, which rarely default, to insuring securities backed by sub-prime mortgages.

Fed loan auctions total $435 billion

Battling to relieve stressed credit markets, the Federal Reserve said Tuesday that it had provided a total of $435 billion in short-term loans to squeezed banks since December to help them overcome credit issues.

The central bank announced the results of its most recent auction -- $75 billion in short-term loans -- the 11th such auction since the program started in December.

From Times Wire Services