WALL STREET JOURNAL

Rick Wagoner, the CEO of General Motors (GM), hit out against allegations that the auto maker may soon file for bankruptcy and said he believes the company’s financial position will “remain robust” for the rest of the year. Wagoner also said, the Wall Street Journal reported, that the company has no plans to sell or reduce more of its brands…FINANCIAL TIMES: An independent Yahoo! (YHOO) would be better for the world, Google (GOOG) CEO Eric Schmidt said and the Financial Times reported. Yahoo! will be able to create more competition in the search market and other advertising markets if it stays independent, Schmidt contended…NEW YORK TIMES: According to people briefed on the plan, the New York Times reported that senior Bush administration officials are weighing a plan to have the government take over either Fannie Mae (FNM) or Freddie Mac (FRE) — or both — and place them in a conservatorship if their problems continue or worsen…The New York Times also reported that people briefed on the matter said Anheuser-Busch (BUD) is in active talks to sell itself to InBev in a friendly deal, despite previous hostility to the idea. One person said InBev indicated it may be willing to pay more than the $65 per share originally offered…

U.S. considering government takeover of Fannie Mae, Freddie Mac-NY Times

Senior Bush administration officials are thinking of implementing a government takeover of Fannie Mae (FNM) and/or Freddie Mac (FRE) and putting them in a conservatorship if their situations worsen, people briefed on the situation said.

U.S. equity futures still point to a lower open; U.S. Trade deficit narrows

U.S. equity futures are still pointing to a considerably lower open this morning, with the DJIA futures down 118 points currently at 11,099. The big names of concern this morning are Fannie Mae (FNM) and Freddie Mac (FRE), whose shares are down significantly again on fears of a government takeover, according to reports in the Wall Street Journal. M&A activity is also an area of focus this morning with the New York Times reporting InBev saying it’s close to friendly deal for Anheuser-Busch (BUD), and Citigroup (C) selling its German retail banking operations to Credit Mutuel for EUR4.9B in cash. Crude oil prices is spiking $3.91 to about $145.56. Gold futures this morning are surging on rising oil, and Iranian tensions. August gold is up $16 to $958 an ounce on Nymex. On the economic indicators front: The U.S. Trade deficit narrowed 1.2% in May to $59.5M.

Semiconductors: Most bad news reflected in valuations@STFL
Stifel does not expect any major sell-off this quarter as most the bad news is reflected in valuations. The firm is positive on valuations for Buy rated AMAT, VSEA, and VRGY and would avoid Hold rated FORM.

JEC added to Conviction Buy List; maintain Buy@GSCO
Goldman cites valuation and solid execution for the addition. Target $94.

Biotechnology Q2 Preview@COWN
Cowen’s favorite names to beat Q2 Street estimates are: ALXN, AMGN, CELG, CEPH, and DNA. The firm expects at least in-line reports for AUXL, BMRN, CBST, GENZ, and IMCL and is cautious on AMLN, BIIB, and GILD ahead of reports.

WYNN: Expect prelim results to drive rally in the group@JPMS
JP Morgan believes WYNN’s preliminary Q2 results to drive a rally in the group given the recent share weakness.