Twin Hurricanes

"True generosity is a duty as indispensibly necessary as those imposed on us by law." - Oliver Goldsmith

Morning News of Note:

• YHOO: Yahoo Email Delivers That Desktop Feel Most Users Expect Web-based email programs, like Yahoo Mail, have long been inferior to email programs that take the form of standard applications installed on your computer. The Web offerings have been short on features, short on email storage and clumsy to use. Lately, however, that has begun to change. A number of major Web-mail providers have introduced versions that offer much more of the ease of use and power of desktop email programs like Microsoft Outlook. (Full Story) WSJ
• SNE: Sony Corp. to Slash 10,000 Jobs Globally Sony Corp. said Thursday it will cut about 10,000 jobs, close 11 plants and shrink or terminate 15 unprofitable operations in an ambitious restructuring bid to revive its stumbling electronics business. The turnaround plan, which will reduce Sony's global work force by 6 percent, comes under the fresh leadership of Chief Executive Howard Stringer, a British-American dual citizen who was named in March as the first foreign head of the Japanese electronics and entertainment company. (Full Story) Washington Post
• Mortgages: Heard on the Street... Mortgage Risk: a Hot Export What if Home Loans Blow Up? Much of the Pain's Been Sent Overseas When the American housing boom winds down, some of the first howls of pain are likely to be heard in Europe and Asia. That is because investment banks have been moving more of the risk of defaults on home mortgages to foreign investors, leaving less with U.S. lenders and investors. (Full Story) WSJ
• DRS EASI: DRS to Acquire Engineered Support Defense contractor DRS Technologies Inc. is set to announce the $2 billion acquisition of Engineered Support Systems Inc., the companies said last night. As one of the year's biggest defense-industry deals, the transaction highlights how service and maintenance programs -- rather than tanks, planes and bullets -- are of increasing importance to the Pentagon and to the private contractors that serve those programs. (Full Story) WSJ
• FPDs: est 3Q global LCD supply will exceed demand 5% vs prev est oversupply 3.8%; customers not buying as many lg screen LCD TVs as epxpected and LCD monitors starting to see inventory build -- iSupply

Market Comments: Close scrutiny of Hurrican Rita remains. CNBC has even put a storm tracker bug in the lower corner of its screen. The market opened lower this morning, but quickly found a bottom and is attempting to bouce currently. I covered some of my ETF shorts into the weakness. It remains to be seen if this bounce has legs to it.

Energy stocks are strong again this morning, and housing stocks are getting a huge bounce (+2.5%), likely due to the fact that the group was oversold and also has a ton of short interest. Financial stocks are weak, as well as biotechs. If the market stays firm, I would expect biotechs to rebound.

long EASI, GOOG