WALL STREET JOURNAL

According to people familiar with the discussions, the Wall Street Journal reported that Microsoft (MSFT) has held discussions with Time Warner (TWX) and News Corp (NWS), among others, about joining it in a deal that could lead to the breakup of Yahoo! (YHOO). Some of the sources said the preliminary talks are unlikely to result in a deal with Yahoo!…Johnson & Johnson (JNJ) is reportedly in exclusive talks to sell its wound-care business Ethicon to the private-equity arm of JP Morgan (JPM), according to the Wall Street Journal. Terms of the potential deal were not disclosed…WASHINGTON POST: Sources familiar with the inquiry said that the Justice Department has opened a formal antitrust investigation into a deal that would allow Google (GOOG) to provide some search advertising for Yahoo!. The Washington Post reported that investigators will demand documents from Google and Yahoo!, as well as other large companies in the media and Internet industries…REUTERS: Reuters reported that regulators in the European Union are looking at the long-term effects of BHP Billiton’s (BHP) $170B bid for Rio Tinto (RTP). Sources familiar with the EU questionnaire said regulators have asked competitors and customers about effects of the deal on their businesses through 2015…

Feds reportedly open investigation into Google, Yahoo ad deal-Washington Post

The Justice Department has launched a formal antitrust investigation into the deal reached between Google (GOOG) and Yahoo (YHOO) last month, inside sources say. Under the deal, Google agreed to provide some search advertising services for Yahoo.

Is Iran ready to negotiate about its nuclear program?-WSJ

Manouchehr Mottaki, a top Iranian diplomat, says negotiations about it nuclear program could begin and that it’s reviewing a series of economic incentives presented to it in June by the U.S. and others, according to the Wall Street Journal. “We see the potential for a new round of talks,” he said. “The two sides are trying to see if they can arrive at a new modality.” The U.S. reaction was one of caution as Iran has not addressed suspension of its uranium enrichment program.

Houston turns to wind power to cut energy costs-WSJ

Even in Houston, Texas, the heart of America’s oil and gas business, wind power is front and center, reports the Wall Street Journal. The city is using wind generated electricity for about 25% of its municipal power needs because it’s cheaper than coal or natural gas. About half of the wind power is provided through Goldman Sachs (GS) and the rest is from Reliant Energy (RRI). Home residents and businesses are not users. Houston is one of the top purchasers of renewable energy in the U.S.

Pre-Market Movers: Ahead of the Bell

The session is once again broadly busy, much more so than we saw through the entire month of June. There are a few issues moving aggressively on earnings news today as well as renewed take-over speculation. The volume leader this morning is Yahoo (YHOO) trading up +8.21% after the WSJ reported that Microsoft (MSFT) was attempting to go after the company again with a group of partners. The Washington Post wrote that the DOJ was beginning a formal investigation into the Yahoo/Google ad sale deal. UnitedHealth (UNH) is trading up +7.41% after it lowered its FY08 EPS (see notes here for details). Volume is heavy. Circuit City (CC) is trading down (-14.5%) after Blockbuster announced it was withdrawing its takeover offer. Chesapeake (CHK) is trading up +4.88% after Deutsche Bank upped its price target to $91. Starbucks (SBUX) is trading up +4.99% after it announced a more aggressive round of under-performing store closings last night after market close. Apollo Group (APOL) is trading up +16.73% after a much better than expected earnings report after market close last night.