Filed under: Before the bell, Analyst upgrades and downgrades, Deals, Market matters, JPMorgan Chase (JPM), Alcoa Inc (AA), Kroger Co (KR), Goldman Sachs Group (GS), Morgan Stanley (MS), Amer Intl Group (AIG), Washington Mutual (WM), Economic data, Lloyds TSB Group plc ADS (LYG), Barclays plc ADS (BCS), SanDisk Corp (SNDK), Lehman Br Holdings (LEH), Housing, Federal Reserve

U.S. stock futures edged lower Wednesday morning after the government announced late Tuesday it would help save AIG. Investors may be relieved with the action on AIG and even the Federal Reserve decision not to move Tuesday, leaving room for a future rate cut, there are still massive concerns about the say of financial markets. Investors this day will also get data from on building permits and housing starts for the month of August. Oil rebounded today ahead of inventory report to over $93 a barrel.

The Federal Reserve said late Tuesday that it would to lend $85 billionAmerican International Group (NYSE: AIG), taking a 79.9% stake in the company. AIG shares are still sinking 30% in pre-market trading.

Meanwhile, as the government refused to help Lehman Brothers (NYSE:LEH) and the company filed for Chapter 11 Monday, Barclays PLC (NYSE: BCS) said it would purchase Lehman’s banking and capital markets business for $250 million. Barclays walked away from the deal a few days ago, perhaps waiting for a better price, in what many say BAC should have done with Merrill. BCS shares are up over 5% in pre-market trading, LEH’s down over 25%.

Morgan Stanley (NYSE: MS) reported its quarterly earnings early to calm investors, posting better-than expected results. It seems the last two major independent investment houses, Morgan and Goldman Sachs (NYSE: GS), which also reported earning Tuesday, both posted third-quarter profits despite continued chaos in the financial markets.

J.P. Morgan Chase (NYSE: JPM) is reportedly in advanced talks to make a bid for Washington Mutual (NYSE: WM).

Continue reading Before the bell: Futures lower; AIG, LEH, BCS, MS, JPM, SNDK, LYG …

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This entry was posted on Monday, September 22nd, 2008 at 6:49 pm and is filed under Latest News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.