Sideways Wednesday

Dow & NAZ are marginally up & advancers are slightly ahead of decliners on very light volume. Many traders must be away enjoying vacation or a holiday. S&P 500 FINANCIALS INDEX is up pennies, remaining at 270. The most exciting news is oil kicking up on hurricane worries:

CLV08.NYM

Crude Oil Oct 08

..119.25

-- 2.98 (2.56%)

• Oil Rises Near $119 on Concerns About Gustav- AP

On a quiet day like this, traders need some worry to keep them busy. This time it's the hurricane. Durables goods orders were up 1.3% in July, better than expected.

Pimco, the biggest manager of bonds funds, wants to buy up to $5B in mortgage debt. They see value in distressed debt, always a good sign when there is a big buyer for securities (especially junk kind of debt). The FDIC wants emergency powers to borrow from the Treasury to get through the mortgage writedown mess.

• FDIC May Borrow Money From Treasury: Report- Reuters

The financial problems are unprecedented & huge. This week the Federal Reserve must be burning the midnight candle trying to figure out how to straighten out Fannie Mae/Freddie Mac. If that weren't enough, they have to keep an eye out for problems at Lehman (LEH). Stay tuned.