Talking Points

Good morning. As markets around the world attempt to stabilize, premarket futures indicate we'll see some buying interest return at the open. Premarket futures currently indicate a +1% to +2% gain at the start of trading.

There's a lot of headlines this morning but the key talking points surround IBM's upside earnings surprise, the Treasury is considering a plan to take ownership stakes in many U.S. banks, the Treasury is working with AIG to replenish liquidity more quickly, Wachovia will likely be carved up and sold to both Wells Fargo and Citigroup, and National City is in talks with other banks about a sale. Meanwhile, all eyes remain on the credit markets which remain tight, jobless claims fell 20,000 to 478,000 last week, and as expected we received a batch of disappointing retail same store sales reports (see GPS, ANF, TUES, PIR, SSI, ZUMZ, GOT).

Premarket gainers: HUN, NCC, BDN, OKS, QSFT, RHD, IVAN, LYG, ABK, LNY, CVH, SI, ABK, SFI, GNW, TS, PKD, HBAN, SOL, MICC, LAB, AIG, AAUK, IBM, C, ENER, CSIQ, CIT, UAUA, SOV, NOK, TRIN, ETFC, JASO, RIMM, & DRYS.

Premarket losers: MW, ABX, RT, CS, ABH, AU, GFI, ISIL, NBG, CHRD, AUY, IFX, HMY, ANF, QTWW, LINE, & TJX.

There's nothing really on the economic calendar today, but we'll have a 1:30PM speech by Minneapolis Federal Reserve Bank President Gary Stern who will talk about financial shock repercussions in Minneapolis. In addition, a lot of of people are waiting on the results from a Lehman auction for their credit derivative trades so you should keep that on the radar as well. As you know, the short sale ban has been lifted and many will be watching for a change in market behavior as a result. At a minimum, that would at least reduce one element of uncertainty that we've had to deal with this week.

All in all, we're well overdue for a positive day to unfold. Whether we'll get it, we'll soon see.