Stocks open higher, traders still nervous

All eyes are on Wall Street Thursday, a day after the Dow closed down nearly 450-points. 

But an overnight infusion of cash into the world markets by overseas banks may be enough to trigger a rally as another big name Wall Street firm teeters on collapse.

U.S. stocks, nursing deep losses from the past few days, opened higher Thursday after the Federal Reserve and central banks throughout the world pumped $55 billion dollars into the markets.

The ailing financial sector, in freefall from the credit crisis prompted president bush to cancel his travels for the day. 

Instead, trying to reassure Americans in these tough times.

“American people can be sure we will act to stabilize our market and improve investor confidence,“ said Mr. Bush.

The market woes are also being watched by democrats, who say the lack of proper oversight is part of the problem now costing American taxpayers billions.

“We don’t need the heavy hand of government but we do need smart oversight to make sure that the entire financial system is no longer put in jeopardy,“ said democratic senator Evan Bayh of Indiana.

In a week where two financial giants failed, one an investment bank, the other a global insurer group backing much of the bad debt loans, analysts say the Federal Reserve is scrambling to melt the frozen credit lending system.

“These markets are shut down and the fed recognized that and that is why they quadrupled the money and will continue to do that,“ said Andy Brenner a Senior Vice President with MF Global.

Another cloud looming on Wall Street, Morgan Stanley, one of two U.S. investment banks still standing is said to be in advanced talks with Wachovia on a merger deal.

And the world’s largest thrift bank Washington Mutual is prepping to sell.

Both looking to stave off bankruptcy or a bailout.