Wall Street Rumors - July 2, 2008

Daily rumors covering the global markets. Subscribe to the update feed here.

Microsoft Seeks Partners For a New Run at Yahoo
Microsoft Corp., (NASDAQ:MSFT) positioning itself for a new run for Yahoo Inc.’s (NASDAQ:YHOO) search business, has approached other media companies in recent days about joining it in a deal that would effectively lead to Yahoo’s breakup, say people familiar with the discussions.

Consumer Pullback Hurts Marks & Spencer
LONDON — U.K. food, clothing and housewares retailer Marks & Spencer Group PLC (LON:MKS) Wednesday reported a drop in sales as consumers pull back on spending, and announced the departure of its food boss, Steven Esom.

UnitedHealth Settles Suits, Cuts 2008 Profit Forecast
UnitedHealth Group Inc. (NYSE:UNH) agreed to pay $912 million to settle two class-action lawsuits against the managed-care provider regarding its historical stock-options practices, as the company again lowered its 2008 profit target and projected second-quarter earnings below expectations.

Stock Futures Inch Higher As Investors Eye Jobs Data
U.S. stock markets looked poised to build on Tuesday’s tepid gains, as investors awaited a raft of crucial economic data.

Paulson to Call for Expansion Of Regulatory Powers
WASHINGTON — U.S. Treasury Secretary Henry Paulson will call Wednesday for an expansion of regulatory powers to ensure that the failure of a nonbank financial institution doesn’t threaten the whole financial system.

Deutsche Bank Expects Profit, No Need to Raise More Capital
FRANKFURT — Deutsche Bank AG (FRA:DBK) Wednesday said it expects to report a profit in the second quarter and won’t need to raise fresh capital.

Starbucks to Shut 500 More Stores, Cut Jobs
Starbucks Corp. (NASDAQ:SBUX) on Tuesday effectively ended its era of blanket expansion by saying it will close 500 more locations in the U.S. and cut 7% of its work force.

Overdue Home-Equity Credit Lines Rise Most Since 1987, ABA Says
July 2 (Bloomberg) — Consumers fell behind on loans secured by their homes at the fastest pace in two decades in the first quarter, signaling deeper distress in the U.S. economy, the American Bankers Association reported.

Las Vegas Sands May Borrow $7 Billion in Macau Loans
July 2 (Bloomberg) — Las Vegas Sands Corp., (NYSE:LVS) the world’s largest casino company by market value, may borrow about $7 billion to expand and refinance debt for projects in Macau, according to three people familiar with the deal.

Buffett’s Berkshire Has Worst First Half Since 1990
July 2 (Bloomberg) — It must be a bear market because even billionaire Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) has slumped almost 20 percent since December.

Google, Apple May Break Your Heart
There are over 7,000 stocks listed on the U.S. exchanges, but only a handful seem to
capture everyone’s attention from day to day. A few of these highly popular equities, like Apple (NASDAQ:AAPL), are so widely held that fortunes are made and lost every time the stock wiggles a few points in either direction.

SanDisk Slides to 52-Week Low
SanDisk (NASDAQ:SNDK) shares set a fresh 52-week low Tuesday, as the maker of flash chips was the subject of another bearish Wall Street note.