This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock Futures Sharply Lower Ahead of Bailout Vote

Updated from 7:02 a.m. EDT

Premarket futures were indicating a sharply lower open for stocks on Wall Street Monday, as traders awaited action by Congress on government support for the financial sector and looked on at Citigroup's (C - Get Report) government-assisted purchase of Wachovia (WB - Get Report).

Futures for the S&P 500 were down 19 points at 1196 and were 20 points short of fair value. Nasdaq futures were lower by 29 points at 1646 and were 37 points below fair value.

On Friday, the three major indices started in negative territory but finished at session highs after President Bush said Treasury Secretary Henry Paulson's proposed $700 billion aid package for the financial system would soon pass through Congress. Traders also were contending with the failure of Washington Mutual (WM - Get Report) and its subsequent sale to JPMorgan Chase (JPM - Get Report).

Over the weekend, Congress was finalizing the bailout proposal. A report from the Associated Press indicated that the House of Representatives would vote on the bill Monday, and the Senate would follow suit later in the week.

The FDIC announced early Monday that Citigroup was buying the senior and subordinated debt as well as banking operations of Wachovia, in a deal facilitated by the Federal Deposit Insurance Corp. The FDIC said that Wachovia did not fail.

Another Journal report said that private equity companies Bain Capital and Hellman & Friedman were in the hunt to buy the Neuberger Berman arm of bankrupt brokerage Lehman Brothers.

The Financial Times also reported that insurance firm AIG (AIG - Get Report) was contemplating the sale of 15 of its businesses to repay an $85 billion bridge loan from the Federal Reserve and keep from being taken over by the government.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
IMCL $5.50 10.00%
AIG $59.88 0.00%
C $54.97 0.00%
JPM $66.47 0.00%
WB $16.23 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs