WaMu & No Bailout Bill Yet

Good morning. Premarket futures are pointing to a negative open as investors react to the largest bank failure in U.S. history.

Last night Washington Mutual was the latest bank to go down in flames. With the Fed's help, JPMorgan agreed to acquire WaMu's deposits, assets, and certain liabilities. Meanwhile, as the credit crisis continues, the Fed boosted the amount of dollars it can funnel to foreign markets to $290 billion.

As for the latest from Washington, the bottom line is that we still do not have a bailout bill approved. Amid a last minute GOP revolt, negotiations have apparently broken down and Wall Street is concerned that any bill that ultimately passes won't be enough given the dire predictions and warnings by government officials all week. As Bush says "if money isn't loosened up, this sucker could go down."

Premarket gainers: TIBX, JBL, TOPS, TRLG, GFI, FINL, APWR, ARNA, AZZ, FOR, KGC, CEF, AUY, JBL, ABX, & HMA.

Premarket losers: WM, FNM, FRE, RIMM, SVNT, FNFG, MS, WB, NED, FITB, NPSP, BCS, ARP, AGU, AIG, ABK, AAPL, TCL, PMI, TMA, CROX, KBH, DRYS, CSIQ, JASO, FWLT, DNDN, NCC, BCS, & PDE.

Other than a checkup on consumer sentiment at 10:AM, focus will remain on the latest from Washington and the WaMu bankruptcy. Beyond those headlines, disappointment surrounding Research In Motion also can't help sentiment. Again, once everyone stops focusing on Washington, the market will then have to turn toward third quarter earnings expectations and that's going to be difficult. But, we'll cross that bridge when we come to it.

As for today, premarket futures suggest that the gains we saw yesterday will be wiped away and then some at the opening bell. In spite of that, go make it a great day.