One thing I learned the hard way...

"One thing I learned the hard way was it doesn't pay to get discouraged. Keeping busy and making optimism a way of life can restore your faith in yourself." - Lucille Ball

Morning News of Note:

• IACID: Diller's IAC Intends to Enter Real-Estate Brokerage Business IAC/InterActiveCorp, which spun off its Expedia Inc. online-travel business, is moving into the real-estate brokerage business. The New York company, run by Chairman and Chief Executive Officer Barry Diller, plans to open several real-estate brokerage offices in the Pacific Northwest during next year's first half, said Rebecca Anderson, a spokeswoman for IAC's financial-services and real-estate division. (Full Story) WSJ
• U.S. GDP: U.S. Economy Probably Grew 3.4% in 2nd Quarter, Survey Says The U.S. economy probably grew at a 3.4 percent annual rate in the second quarter, the same as initially estimated, as consumer and corporate spending let companies reduce inventories, economists expect a government report today to show. The projected expansion of the gross domestic product, the sum of all goods and services produced in the U.S., is based on the median estimate of 72 economists in a Bloomberg News survey. (Full Story) Bloomberg
• GOOG YHOO: ONLINE AD WAR Yahoo! is seeking to challenge Google as the go-to place for online advertisers, as the Internet heavyweights increasingly go head-to-head in big marketing pitches. The rival search engines have been making aggressive moves to lock up multi-year ad deals with partners in their fight for online ad dollars. (Full Story) NY Post
• LCDs: LCD panel mkt to veer back toward oversupply in 1H06 - DigiTimes: DigiTimes reports, citing study, that although oversupply of TFT LCD panels is expected to ease this quarter, demand for TFT LCD panels will still run short of supply by 12% in the 2Q06. Demand for TFT LCD panels this quarter will lag supply by 4.9%, down from 10.4% in the 2Q. However, balance in the TFT LCD panel industry will again tip towards oversupply starting from next year, and supply will outpace demand by 8.17m panels in the 2Q06.

Market Comments: The market opens lower again this am, on a slightly weaker-than-expected GDP report, and a much weaker Chicago PMI (49.2 vs. 61.0). The weak economic reports have the 10-year Treasury yield back down near 4.0%. Boy, is that yield curve ever flat.

The silver lining here might be that with weaker economic data, and an emerging energy crisis out of Louisiana, the Fed might blink and take a pause in raising rates. That would turn out to be bullish for the markets. Beyond that, let's watch for another potential late day rally on short covering. (75% net long)

long GOOG