WALL STREET JOURNAL

The Wall Street Journal reported that Toyota (TM) is set to revamp its manufacturing operations in the U.S. in response to rising gasoline prices that have led to a shift toward fuel-efficient models. Officials at the auto maker said key moves may include dropping plans to produce the Highlander car-SUV crossover vehicles in a Tupelo, Mississippi plant, instead producing the Prius at the plant…Tomorrow Apple (AAPL) launches its second version of the iPhone but it also will be opening its APP Store to software developers–an online bazaar–with the intent of bringing more applications to the phone as it has with music via its iTunes stores. Apple’s goal is to turn the iPhone into a gadget that more resembles a personal computer, the Wall Street Journal reported…SOUTH CHINA MORNING POST: According to sources, the South China Morning Post reported that Wynn Resorts (WYNN) is considering a secondary listing in Hong Kong that would raise as much as $3B. The source said that the fund-raising plan has yet to be approved that that the company is a “long way” from a share sale and “might never do it.”…BLOOMBERG: In an interview, Bloomberg reported that Former St. Louis Federal Reserve President William Poole said there is an increasing chance the U.S. may need to bail out “insolvent” Fannie Mae (FNM) and Freddie Mac (FRE). Poole said data provided show that the fair value of Fannie Mae’s assets fell 66% to $12.2B in Q2, while Freddie Mac owed $5.2B more than its assets were worth during the quarter…

Allstate ranked as worst insurance company by lawyers-ConsumerAffairs.com

According to an investigation of thousands of financial filings and legal documents by a trial lawyers’ group, Allstate (ALL) is rated as the worst insurer for consumers. The American Association for Justice said the rankings were based on what it found to be “a distinct pattern of insurance industry greed” and said that while Allstate “publicly touts its ‘good hands’ approach, it has instead privately instructed its agents to employ a ‘boxing gloves’ strategy against its policyholders.”

California forces Allstate to drastically lower home insurance rates-LA Times

California will force Allstate (ALL) to reduce its home insurance premiums in the state by 28.5%. The decision appears to end more than two years of battles between California and Allstate. The insurer, which said it would comply with the state’s order, stopped issuing new homeowners’ insurance policies in California last year, but still covers about 1 in 7 of the state’s residences.

Bush Administration deciding what to do with Fannie and Freddie-WSJ

If Fannie Mae (FNM) and Freddie Mac (FRE) slide further the Bush Administration has had ongoing discussions about what their alternatives are, reports the Wall Street Journal. “They can’t be allowed to fail,” says Peter Wallison, a one-time Treasury Department general counsel. “The losses would extend through so much of our economy, and so much of the world economy. There is simply no way that the United States government can let it happen.” If they cannot raise capital themselves talk has been about a credit line from the Fed, an equity investment by the government, or a federal guarantee of the mortgage companies’ $1.5T of debt.

Pre-Market Movers: Ahead of the Bell

The session has an overall positive tone in futures despite the drubbing markets took yesterday and fresh news of financial company woes. The primary catalyst for the new enthusiasm centers around the big volume mover this morning, Rohm & Haas (ROH), which is trading up +65% after Dow Chemical (DOW) agreed to buy the company in a deal valued at $18.8B. Despite the size of the deal, Dow Chemical (DOW) is only off (-2.38%). By contrast Freddie Mac (FRE), trading down (-8.67%) after former Fed president Poole suggested that both the company and Fannie Mae (FNM), trading down (-5.09%), were insolvent. Marriott (MAR) which reported earnings this morning, drastically lowered its Q3 outlook. As a result the stock is trading down (-5.55%) but had been down much more sharply earlier in the session. Wachovia (WB) is trading down (-7.9%) after it announced both a new CEO, Robert Steel - widely viewed as a major positive - and a much wider than expected writedown of $2.6B. The shares had been positive in the very early going on the CEO news. Apple (AAPL) is trading up +0.8% ahead of the launch of the 3G iPhone tomorrow. FCStone Group (FCSX) just jumped to the most actives, trading down (-33.3%) in what looks to be the disaster of the day. The company missed on Q3 earnings reported this morning before the open.

CSCO: Checks indicate quarter will be in-line@SMMI
SMH Capital’s checks indicate CSCO’s July quarter is tracking in-line with their $10.3B/39c estimates but that some business units, including both enterprise switching and some carrier units, are slightly lowering their FY09 outlook as they go through the planning forecasts. Shares remain Buy rated.

GOOG : Predict in-line results@STFG
Stanford believes that Internet advertising growth has declined in both the U.S. and U.K., Google’s two largest markets, and the firm maintained their Hold rating.