Fed may not rush to the rescue
Bernanke wants to break assumption that central bank will cut rates whenever there is turmoil in financial markets, according to a report. (more) Taken from cnnmoney.com
Stocks recover, turn higher
Major gauges erase early losses, as strength in technology overshadows weakness in blue chips; jitters remain about credit turmoil, Bernanke speech Friday.
NEW YORK (CNNMoney.com) -- Stocks gained Thursday morning, erasing early losses, as strength in technology shares trumped weakness in blue chips. However, gains were limited by ongoing worries about the credit market and geared up for Friday's key speech from Federal Reserve chairman Ben Bernanke.
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- Market anxiously awaiting Bernanke speech tomorrow
- Tech's limited exposure to subprime fallout acting as offset to lingering credit concerns
- Lehman cuts EPS estimates on several brokers (e.g. MS, MER, GS, BSC); KKR reportedly fighting with banks over $24 bln to finance First Data buyout; Freddie Mac posts $320 mln loss on new mortgages; third straight drop in outstanding commercial paper marks worst slump since 2000
- Sears Holdings posts 40% drop in Q2 profits, CEO says he's "disappointed" with results; Wal-Mart downgraded to Sell
- As expected, Q2 GDP revised higher, preliminary read checks in at 4.0%; key inflation measure remained unchanged at 2.7%