Barclays PLC Fitch Ratings revised its outlook on the AA long-term issuer default rating to negative from stable.

MidAmerican Energy Holdings Co., a subsidiary Berkshire Hathaway, reached a tentative deal to buy Constellation Energy for approximately $4.7B.

CKE Restaurants, Inc. (Delaware Holding Co.) The restaurant group announced second-quarter profit rose to $12.3M, or 23 cents a share, from $9.4M, or 15 cents a share, in the year-ago period, beating analysts expectations. Revenue fell to $352.5M from $363.1M.

Fedex Corp The shipping giant’'s fiscal first-quarter net income fell 22% amid weak domestic volumes as the company forecast earnings for the current quarter above analysts' estimates and said it will increase shipping rates 6.9% beginning in January.

Google Inc The search giant’s new mobile device, to be introduced Sept. 23, will cost $199, The Wall Street Journal reported.

Kraft Foods Inc The food conglomerate replaces AIG in the Dow Jones industrial average effective Monday.

Morgan Stanley reportedly has held preliminary takeover talks with Wachovia.

The odds of an intermeeting 25bps rate cut this month are coming down after Fed and other CB maneuvers overnight. As it stands now, the risk of a 25bps rate cut this month stand at 36%, down from 52% on the close yest.

Financials recently found their best level of the session, helping the broader market pull out of the red. The sector has climbed all the way to a 4.5% gain.
Still lagging, though, are investment banks and brokers. The industry group is down 4.6%. That is still quite an improvement from the 20% loss the group was showing at its session low.

JPM's Mike Krauss says "Watch the close today....S+P exactly hit the 1134 target- very big six year H+S bottom neckline shown yesterday. Buy zone (other is 1122). Also, 2 year swap spreads hit very long term measured moves at 155-160. This seems radeable."

Losses continue to extend in the stock market. The major indices are now at a session low.
The downturn has taken stocks to a new 52-week low. The S&P 500 is now almost 28% off its high, which was posted almost 11 months ago.
Treasuries have fared well during that time. The 10-year Note, the benchmark for Treasuries, has seen its yield fall from around 4.65% to its current 3.38% since the time stocks hit their high. Yields move inversely to prices.

"indicates that economic activity is poised to decline over the second half of this year and into the early part of 2009. At best, the economy might manage very sluggish growth."

The dollar touched a two-week low versus the euro after the world's biggest central banks said they will act to revive financial markets, reducing demand for the greenback as a haven.
The yen dropped versus the New Zealand and Australian dollars as the Federal Reserve, Bank of Japan and European Central Bank joined global counterparts to reverse the seizure in credit markets, reviving demand for higher-yielding assets. The dollar remained lower versus the euro as U.S. initial jobless claims unexpectedly increased last week.
``We're seeing reassertion of the weakness feature in the dollar as we get some breathing room,'' said Alan Ruskin, head of international currency strategy in North America at RBS Greenwich Capital Markets Inc. in Greenwich, Connecticut. ``There are really two forces running against each other, repatriation flows and weak economic fundamentals in the U.S.''
The Fed said in a statement on its Web site it authorized other central banks to auction $180 billion in dollar funds to financial institutions. The ECB will offer up to $40 billion for one day today and increase the amount of dollars provided to European banks in existing longer-term auctions, it said
The U.S. currency remained lower versus the euro as the Labor Department reported that the number of Americans filing first-time claims for unemployment benefits increased to 455,000 in the week ended Sept. 13, from 445,000 in the previous week. The median forecast of 38 economists surveyed by Bloomberg News was for a drop to 440,000.
``We're seeing a modest rebound in risk appetite,'' said Adam Cole, head of global currency strategy at RBC Capital Markets in London. The intervention ``signals that they will do what they can to help us through this situation,'' he said.

Economist Steven Wood at Insight Economics says Philly Fed index had its "first positive reading in the last 8 months. On an ISM-weighted basis, the index also improved sharply but remained slightly negative. These data suggest that manufacturing activity of mid-Atlantic based businesses expanded modestly."

The major indices dipped into negative territory as conviction behind early morning buying fades.
The financial sector had been up as much as 3.7% early on. It is now down 1.3%, trading just above its session low.
Consumer staples continue to hold gains. The sector has attracted safety seekers and is up 1.5%. At its session high it was up 2.2%.
Cereal and prepared food company Kellogg (K 56.79, +0.38) is acquiring a privately owned Austrailian cereal maker, Specialty Cereals. The terms of the deal were not disclosed, but the acquisition is not expected to have a material impact on Kellogg's 2008 operating profit.

Still looking for direction, the financial sector is up 2.6% this session, though that pales in comparison to the prior session's 8.9% slump. One weak spot in the sector remains to be investment banking and brokers (-0.6%) as their future remains clouded.
Reuters reported that Morgan Stanley (MS 20.15, -1.50) is pursuing multiple tracks to endure the current crisis. Reuters also reported Morgan Stanley is approaching China Investment Corp regardin an increased stake in the American investment bank.
The fate of Morgan Stanley has been debated in recent sessions, following the failure of Bear Stearns, Lehman Brothers, and the merger between Merrill Lynch (MER 20.38, +1.02) and Bank of America (BAC 28.70, +1.50).

Eases closer to $1.4400 and $1.4380 area drawing some attention. Modest tech level said to hold bids ahead of stops. Techs suggest break of $1.4420 to yield a move to $1.4360. Above $1.4525 to open a retest on earlier highs at $1.4541, with offers noted between $1.4540/50. Stronger interest then noted around $1.4575. One tech trader has mentioned that rate has potential to trade up to the area between $1.4670/1.4705.

Sept Philly Fed data show prices paid 31.5 vs 57.5, new orders 5.6, employment -0.9, inventories -22.9, shipments +2.6.

Stocks have opened the session with handsome gains. Their advance is broadbased with all ten of the economic sectors moving higher.
Small-cap and mid-cap stocks are also attracting attention. The Russell 2000 is up 2.5% fresh out of the gate, while teh S&P 400 is up 1.4%.
The renewed interest in equities has pushed Treasuries out of favor. The 10-year Note is off by 9 ticks in the early going, pushing its yield up to 3.45%

Stock futures maintain their lead over fair value :S&P futures vs fair value: +14.90. Nasdaq futures vs fair value: +23.30. Crude has made its way back above $100 per barrel.
Early Thursday, the Federal Reserve and other central banks around the world announced that they would inject money into the markets in an effort to calm them. Joining the Fed were the European Central Bank, the Swiss National Bank, the Bank of England, the Bank of Canada and the Bank of Japan.
As additional signs of market turmoil, oil prices and weekly jobless claims both increased.
So far this week, the Federal Reserve announced a takeover of the troubled insurance American International Group in the form of an $85 billion loan, but didn't step in for Lehman Brothers, which filed for bankruptcy. In addition, Bank of America agreed to acquire Merrill Lynch for $50 billion.
Those actions have left other banks and investment houses quaking. Morgan Stanley and Goldman Sachs fell sharply Wednesday, and there was talk after the close of possible merger talks between Morgan Stanley and Wachovia.
There was also talk that troubled savings and loan Washington Mutual has put itself up for sale.
Oil made a comeback, rising $3.86 a barrel to $101.02, as some investors eschewed stocks and dumped their money into commodit

"On today's worse-than-expected report (on claims) we revised down our forecast for September nonfarm payroll employment growth to -125,000 from -100,000."