Stock futures maintain their lead over fair value :S&P futures vs
fair value: +14.90. Nasdaq futures vs fair value: +23.30. Crude has
made its way back above $100 per barrel.
Early Thursday, the Federal Reserve and other central banks around the
world announced that they would inject money into the markets in an
effort to calm them. Joining the Fed were the European Central Bank,
the Swiss National Bank, the Bank of England, the Bank of Canada and
the Bank of Japan.
As additional signs of market turmoil, oil prices and weekly jobless claims both increased.
So far this week, the Federal Reserve announced a takeover of the
troubled insurance American International Group in the form of an $85
billion loan, but didn't step in for Lehman Brothers, which filed for
bankruptcy. In addition, Bank of America agreed to acquire Merrill
Lynch for $50 billion.
Those actions have left other banks and investment houses quaking.
Morgan Stanley and Goldman Sachs fell sharply Wednesday, and there was
talk after the close of possible merger talks between Morgan Stanley
and Wachovia.
There was also talk that troubled savings and loan Washington Mutual has put itself up for sale.
Oil made a comeback, rising $3.86 a barrel to $101.02, as some investors eschewed stocks and dumped their money into commodit