Before the Bell: Water-logged
Like a leaky boat, Wall Street just keeps sinking amid controversy over the proposed government bailout. And Fed chief Ben Bernanke has poured more cold water on the investing mood by saying global markets remain under extraordinary stress.
Stock futures are pointing lower as Congress has shown some reluctance to rubber-stamp the $700 billion bank rescue plan, which some say could create more problems because of the ballooning deficit while not resolving the credit crisis.
But while not everyone loves this bailout, it appears to be all we’ve got.
The good news is that oil prices, whose huge gains also wigged out the stock market yesterday, have also fallen.
U.S. Treasuries are mostly higher, while the dollar is steady against an index of major currencies.
Home builder Lennar reported a smaller-than-expected quarterly loss, although revenue plunged 53 percent.
Kohlberg Kravis Roberts – a private equity firm that is planning on going public – posted a net loss for the first half of 2008, compared with a year-earlier profit.
– Lisa Von Ahn