Breaking The Buck

Good morning. Premarket futures are pointing to a lower open in spite of news that AIG has been saved by the Fed.

Financials are again under significant sell pressure as concerns linger that other firms are headed down the same path and lending among banks has stopped. In addition, it probably doesn't help sentiment too much that some investors have been frozen out of their money market funds.

Beyond the latest news of the ongoing credit crisis, housing starts were down 6.2% and single-family building permits were at a 26-year low. Oil prices are also attempting to rally this morning.

Premarket gainers: SNDK, ADBE, BCS, ESLR, NCOC, LGY, HOKU, ACGY, BCPC, CNQR, DRYS, MPEL, HL, TEO, QCOR, STEC, MYL, GSS, KFT, ACLS, & PDO.

Premarket losers: AIG, LEH, MS, VSE, WB, MF, MER, ROS, IRE, PTR, CEO, MBT, CHA, ZNH, SNP, UAUA, FITB, AMR, CAL, GILD, ETFC, POL, FITB, AAUK, TEVA, PRGO, COIN, & NT.

Other than the EIA Petroleum Status report at 10:35, Wall Street will remain on death watch for other firms (including Washington Mutual and Citigroup). In addition, we'll no doubt see a lot of chatter over the safety of cash sitting in money market funds. Big institutions can fail or be saved, but when you threaten cash sitting in money market funds, people aren't going to be too happy.

In spite of all of this, have a wonderful Wednesday.