Weekend Update

Another Monday will be upon us with the same question in mind: Where is the now infamous $700 billion going? The latest light bulb in Congress's head will have them directly purchasing stocks in many of the banks that have weathered the storm to this point but are in obvious need of capital. Unlike the initial plan itself, this idea is actually supported by the majority of Congress, with Charles Shumer being the loudest voice.

As I mentioned on Friday, earnings galore are upcoming, with financials peppering this week especially. S&P futures are up 3.5% and Nasdaq futures are up 2.75%. This is not surprising considering the rally from the Dow I noted on Friday. Whether these overnight gains will be sustained throughout trading on Monday remains to be seen (recall the positive opens for the Dow last week were wiped out within the first hour of trading). However, with news on the government purchase of bank stocks presumably dominating headlines tomorrow, I am confident that we will see these gains sustained for most of the day. Another positive going into tomorrow's trading is news that European goverments have agreed to begin backing the loans made between banks in an effort to unhinge the lock on their credit markets.

It looks like my Phils are going to drop game 3, but a trading day in the black tomorrow would certainly ease the pain. Goodnite all.