Wall Street Hopes For Better GDP Report Amid Higher Losses

New York, NY (AHN) - Wall Street shares are likely to drop on negative sentiment on Friday as the Federal Deposit Insurance Corporation (FDIC) seized Washington Mutual Inc. (WM) in the country's largest bank failure ever.

JPMorgan Chase & Co. became the biggest U.S. bank by deposits after it took over Washington Mutual for $1.9 billion from FDIC late on Thursday

JPMorgan would acquire some liabilities of firm's banking operations including $307 billion in assets and $188 billion in deposits. The firm is expected to raise capital of $8 billion through the sale of stock.

The bank had been trying to raise capital to shore up its finances amid its unsuccessful efforts to value the mortgage-related assets and to trade in the market that faces credit slump.

At 7:42 a.m. EDT in New York in pre-market trading, S&P futures were trading lower by 19.60 points or 1.62 percent at 1,194.00 points, NASDAQ futures was moving down by 23.00 points or 1.37 percent at 1,657.00 points.

While Dow was trading lower at 158.00 points or 1.43 percent at 10,860.00 points.

Oil futures continued its downward movement as it dropped on Friday by $2.91 to $105.11 a barrel on weak dollar and rising financial concerns that may reduce demand.

On Thursday, November crude-oil futures moved up by $2.29 to close at $108.02 a barrel on the New York Mercantile Exchange.

In addition, the U.S. government and Congressional negotiators ended talks for the night on Thursday before finalizing their decision to pump $700 billions into the financial system and transform the way Wall Street is regulated.

In a fresh bid to address the pressures in global money markets, the central banks on early Friday announced that they would funnel additional $13 billion in liquidity, apart from the $277 billion previously authorized temporary reciprocal currency arrangements with other central banks.

The Federal Reserve has set up swap lines (temporary reciprocal currency arrangements) in coordination with the European Central Bank, the Bank of England and the Swiss National Bank.

The existing swap lines with the ECB and the Swiss National Bank are being increased by $10 billion and $3 billion, respectively, according to the Fed on Friday.

In economic reports, the Commerce Department is scheduled to release information on the final second-quarter revision for gross domestic product at 8:30 a.m. ET.