Before the bell: Watching the Fed, investors prop up Goldman fund

The credit spigot continues to flow into the market.

Earlier this morning, Central Bankers in Europe loaned 47.7 billion euros to banks, down from 61 billion euros on Friday, according to Bloomberg News. The Bank of Japan added 600 billion yen, the Wall Street Journal said. Investors are betting that the Federal Reserve will likely follow the European's lead which is why stocks are trading up in pre-market action. Plus, the Federal funds matched the Federal Reserve's target of 5.25 percent. Whether that gain can be sustained will depend on how the market reacts to several key economic reports.

First, the Commerce Department reported a modest rebound in retail sales in July compared with June when they fell. The Labor Department's Producer Price Index and Consumer Price Indexes are due to be released Wednesday.

The news wasn't all bad though.

Blackstone Group LP (NYSE: BX) today reported that its net income more than tripled.

Goldman Sachs Group Inc. (NYSE: GS) said that had gotten $3 billion in new capital for its Global Equity Opportunities Fund. The company's strategist Abby Joseph Cohen told clients that fundamental investors now see value.

President Bush's political guru Karl Rove plans to resign at the end of the month, according to media reports.