TOP STORIES 
 
BALLMER STEPS DOWN FROM MICROSOFT BOARD 

Former Microsoft Chief Executive Steve Ballmer, newly installed as owner of the Los Angeles Clippers basketball team, is stepping down from the company's board after 14 years.

 
ALLERGAN, SEEKING TO FEND OFF HOSTILE BID, APPROACHES SALIX 
 

Allergan is said to have approached Salix Pharmaceuticals and at least one other company about a potential acquisition, as the Botox maker seeks to fend off a $53 billion hostile takeover from Valeant Pharmaceuticals.

 
CITIGROUP CONSIDERS SALE OF JAPAN RETAIL UNIT 
 

Citigroup is said to be considering the sale of its retail-banking business in Japan, where the U.S. financial giant has had a presence for decades as a leading Western bank.

 
U.S. STOCKS END HIGHER ON DATA, EARNINGS 
 

Stocks finished broadly higher following positive economic data and some strong earnings results. The Dow industrials added 81 points, the Nasdaq Composite closed at a fresh 14-year high, and the S&P 500 also gained.

 
HOME DEPOT'S EARNINGS DRIVEN BY BIG-TICKET ITEMS 
 

Home Depot said its fiscal 2Q profit rose 14% to $2.05 billion, or $1.52 a share, as the retailer enjoyed strength in its seasonal and primary home-improvement businesses. Net sales rose 5.7% to $23.81 billion. Shares were up 4%.

 
U.S. HOUSING STARTS SURGE IN JULY 
 

Housing starts climbed 15.7% in July to a seasonally adjusted annual rate of 1.093 million units. That marked the highest level since November, a sign renewed strength in the housing market could boost the economy in coming months.

 
U.S. CONSUMER PRICES RISE 0.1% IN JULY 
 

Consumer prices advanced in July at their slowest pace since February, which could give the Federal Reserve more flexibility to maintain policies designed to stimulate stronger economic growth.

 
WELLS FARGO SEEKS TO BOOST ASSET-MANAGEMENT BUSINESS 
 

Wells Fargo aims to double the size of its asset-management unit to $1 trillion over the next decade through acquisitions and more aggressive sales to big investors, according to executives carrying out the plan.

 
N.Y. WATCHDOG FINES STANDARD CHARTERED $300M 
 

Standard Chartered will pay a $300 million penalty to New York's financial regulator and impose measures to correct lapses in its anti-money-laundering procedures, the New York State Department of Financial Services said.

 
LEAR NEARS DEAL TO BUY EAGLE OTTAWA 
 

Lear is nearing a deal to acquire Eagle Ottawa, the world's largest supplier of premium automotive leather, for more than $800 million, according to people familiar with the matter.

 
MEDTRONIC TOPS VIEWS, REAFFIRMS COVIDIEN BID 
 

Medtronic said that it is "fully committed" to completing its deal to buy Covidien. The company also reported earnings of $871 million, or 87c a share. Revenue rose 5% to $4.3 billion.

 
 
 
 
  ======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES ======= 
 
 
Big Picture 
HOUSING MAY PLAY A BIT PART IN FED RATE THINKING 
 

After its July 29-30 meeting, the Federal Reserve said "the recovery in the housing sector remains slow." Given policy makers' spotlight on housing, Tuesday's report on residential construction was welcome news, writes Kathleen Madigan.

 
Ahead of the Tape 
EURO-ZONE PMI LIKELY HOLDS FEW SURPRISES 
 

Investors will get another view of the euro zone's economic course with the release of the Markit Purchasing Managers' Index. This is the first report that will signal whether sanctions against Russia are dragging down activity further across Europe.