JPMorgan Chase buys Bear Stearns for about $2/sh

JPMorgan Chase has announced it is acquiring Bear Stearns for about USD 2 a share in stock.
JPMorgan has said that they will ensure that the stock trades till the deal is completed.
On Friday Bear Stearns had received emergency funding from JPMorgan Chase to stave off liquidity problems arising from the credit crisis.
JPMorgan Chase, in association with the Federal Reserve Bank of New York, will provide a secured loan facility for an initial period of up to 28 days, allowing Bear Stearns to access liquidity as needed.
Bear Stearns also said it is talking with JPMorgan Chase regarding permanent financing or other alternatives. The Board of the Federal Reserve has approved the proposal for such a bailout.
The Bear Stearns stock plunged almost 50 percent after the news of the financing came in.

Fed cuts discount rate by 25 bps to 3.25%

The U.S. Federal Reserve has cut the discount rate by 25 basis points from 3.5 percent to 3.25 percent effective immediately.
The Central Bank also extended the maximum term of discount-window loans to 90 days from 30 days. The Fed, in a statement said that the moves were designed to bolster market liquidity and promote orderly market functioning.
US stock Index Futures rose after the unexpected rate cut, on the back of the news the US dollar edged higher against the Yen.

MARKET OUTLOOK

GLOBAL MARKET IS WEAK TODAY.GLOD IS IN ALL TIME HIGH.FED CUT DISCOUNT RATE BY 25 BPS TO EASE LIQUIDITY.INDIA WILL FOLLOW THW THE PHASE. LEVEL OF NIFTY IS 4450-4500-4600-4700,MAEKET SL WOULD BE FOR ALL LONG IS 4450,BELOW THIS MARKET WOULD BLEED.IF MARKET SUSTAIN ABOVE 4500 OIL& GAS AND PSU BANK CAN ASSUME LONG SIDE AND IF MARKET TOUCH 4700 LEVEL WE CAN ASSUME SHORT IN POWER AND CONSTRUCTION STOCK.
HAVE NICE TRADING DAY