Fed Pumps $55B into Financial System, Stocks Higher Thursday

11:00am Market Indexes

30 industrials 10674.07 up 64.41 or 0.61 percent
20 transportation 4820.45 down 36.45 or -0.75 percent
15 utilities 430.66 up 6.99 or 1.65 percent
65 stocks 3857.08 up 13.25 or 0.34 percent

Bush says he's concerned about markets

WASHINGTON (AP) - President Bush says he shares the American people's concern about the situation in U.S. financial markets and the economy.

Bush says the markets are adjusting to "extraordinary measures" the government has taken to stabilize the economy.

The president delivered a statement to the America people from just outside the Oval Office. He said that he and his advisers are working to promote stability in the markets. But Bush did not announce any new policy moves.

The president scrapped an out-of-town trip to monitor the situation and will meet later Thursday with Treasury Secretary Henry Paulson.

Stocks extend gains after manufacturing reading

NEW YORK (AP) - Stocks are extending their advance after a reading of regional manufacturing came in better than the market expected.

The Philadelphia Federal Reserve's index of regional manufacturing report has improved to a 3.8 in September from a negative 12.7 in August. It marks the first positive reading since November.

Stocks open higher after Wednesday's rout

NEW YORK (AP) - Stocks are opening sharply higher after the previous session's massive rout although safe assets such as gold and Treasury bills are still seeing heavy demand.

Investors are bracing for more instability in the financial system.

The Federal Reserve and other major central banks around the world on Thursday have joined forces to inject as much as $180 billion into global money markets in an attempt to keep the credit
crisis from worsening. The Fed has added another $55 billion in overnight loans.

The Dow Jones industrial average is up 150 at the 10,757 level.

Federal Reserve to pump billions to help ease a spike in the overnight lending rate

WASHINGTON (AP) - The Federal Reserve says it pumped $55 billion into the nation's financial system.

The Federal Reserve Bank of New York's action Thursday came in two operations of temporary reserves aimed at helping to ease a worsening global credit crisis.

The maneuver takes place as Fed Chairman Ben Bernanke battles the worst financial crisis since the Great Depression. In the last few days, the American financial system has been badly shaken as bad bets on dodgy mortgage-backed securities claimed more Wall Street giants.

The cash infusion was designed to help ease a spike in the overnight lending rate between banks. A sharp rise in such borrowing costs makes banks reluctant to lend to each other, worsening already tight credit conditions.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

Investors and world markets are still wary of a snowball effect over failed U.S. banks, reports CBS News Jeff Glor. Maggie Rodriguez talks to Sheila Bair, chairman of the FDIC, about your money during The CBS Early Show.