Stock Futures Indicate Mixed U.S. Open

Premarket futures were forecasting a narrowly mixed open for stocks in the U.S., as investors contended with a mixed bag of reports about the highly volatile financial sector.

Futures for the S&P 500 were up 2 points at 1254 and were 3.5 points above fair value. Nasdaq futures were up a point to 1783, but were 1.2 points below fair value.

On Thursday, the major indices opened with wide losses as traders hammered away at financial-services names Lehman Brothers (LEH Quote) and Washington Mutual (WM Quote). However, stocks staged a sharp rally in the final minutes of trading, sending WaMu shares higher as Lehman continued to languish.

Following the market's close, The Wall Street Journal reported that Lehman was shopping itself to, among others, Bank of America (BAC Quote). The Journal and Reuters both listed British bank Barclays (BCS Quote) as another potential buyer. A solution to Lehman's recent woes could help restore confidence in U.S. financial markets.

Washington Mutual, meanwhile, said it has $50 billion in liquidity and announced that its retail deposit base remained at levels reached at the end of 2007. The company also said it expects its third-quarter loan-loss provision to be about $4.5 billion, down from $5.9 billion in the second quarter.

Ratings agency Moody's downgraded WaMu's credit rating to below investment grade, citing "reduced financial flexibility." Bloomberg also reported that the company may have to sell some of its deposits and branches as it struggles to raise capital. Thursday's late rally aside, shares of the Seattle bank have been pounded in recent days on fears about its sizable exposure to bad mortgage debt.