Shares of Advanced Micro Devices (NYSE:AMD) are getting crushed 10% in early trading as the company cut its Q3 sales forecast due to manufacturing issues. The company also reduced its sales forecast from 10% to 4%-6% and lowered gross margins. Furthermore, shipments of AMD’s next-generation server processor occurred later in the quarter than previously estimated.
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Big banks are rebounding before the bell as German lawmakers vote to expand the European Financial Stability Facility (EFSF) rescue fund. The lower house of parliament passed the measure with 523 votes in favor and 85 against, upping Germany’s guarantees from 123 billion euros to 211 billion euros. The measure will grant the fund the power to buy bonds in secondary markets, enable bank recapitalizations, and offer precautionary credit lines. The Labor Department also announced that weekly jobless claims slipped below 400k to 391k. It’s the first time applications have fallen below 400k since August 6th. Bank of America (NYSE:BAC) and JP Morgan (NYSE:JPM) are trading nearly 4% higher, and Wells Fargo (NYSE:WFC) is about 1.43% higher. Despite cutting their global GDP estimates for 2011 and 2012, Citigroup (NYSE:C) is bouncing 3.2% in early trading.