U.S. stocks erase losses amid hopes of AIG rescue

Date: Tue, 16 Sep 2008 12:02:55 -0400
U.S. stocks erase losses amid hopes of AIG rescue

NEW YORK
U.S. stocks on Tuesday erased losses and tilted higher amid reports the
federal government might intervene to prevent a possible collapse of
giant insurer American International Group Inc.

The Fed: Market looks for rate cut, but it's not certain

Financial markets are betting on an interest-rate cut by the Federal
Reserve some time this month, but it's not certain that the central bank
will deliver it at Tuesday's regularly scheduled meeting of its
rate-setting panel.

Economic Report: Consumer prices fall 0.1% on weaker energy prices

With energy prices falling sharply, U.S. consumer prices declined 0.1%
in August, the first decrease in nearly two years, the Labor Department
reported Tuesday.

Goldman profit falls 70%, CFO rules out bank deal

NEW YORK
Goldman Sachs added to the mounting sense of gloom on Wall Street
Tuesday when it reported that third-quarter profit plunged 70% from a
year ago as business slowed across the board and the firm posted more
than $800 million in losses from sour residential and commercial real
estate assets.
Barclays in talks to buy Lehman's core U.S. business

Barclays, the U.K. bank that dropped out of negotiations to buy Lehman
Brothers over the weekend, is back in talks with the failed group to
snap up its U.S. broker-dealer operations.