TOP STORIES 
 
CBO OFFERS MIXED FORECAST OF U.S. BUDGET, ECONOMY

The Congressional Budget Office said the federal budget deficit over the next decade will be smaller than previously forecast, as the government continues to benefit from low interest rates.

 
STOCKS MEANDER BETWEEN GAINS, LOSSES

U.S. stocks drifted around unchanged levels midday, pausing after the S&P 500 index closed above 2000 for the first time. There was little economic news on the calendar.

 
FIERCE FIGHTING PERSISTS IN EASTERN UKRAINE

Heavy fighting flared between Russian-backed rebels and government forces in eastern Ukraine, a day after the first face-to-face meeting between the Russian and Ukrainian presidents bore scant signs of progress.

 
ALIBABA'S RESULTS IMPROVE AHEAD OF IPO

Alibaba reported a surge in revenue and earnings for its latest quarter, driven in part by increased activity on mobile devices, though its profit margin narrowed. The results were included in an updated regulatory filing as the company is gearing up to launch its U.S. IPO next month.

 
TIME WARNER CABLE SUFFERS OUTAGES

Time Warner Cable said service was largely restored following an outage of Internet and on-demand services in all of its markets, days after federal regulators fined the company over its outage reporting. Shares edge higher.

 
SEC APPROVES RULES CURBING CREDIT-RATING CONFLICTS

The SEC voted 3-2 to approve long-awaited rules designed to curb conflicts of interest at credit-rating firms, following criticism the firms failed to adequately sound alarms about flawed mortgage securities ahead of the financial crisis.

 
MICHAELS'S RESULTS, OUTLOOK TOP VIEWS

Michaels Cos.'s fiscal 2Q sales increased more than expected in the retailer's first earnings report since it went public again at the end of June. Net sales rose 4.9% to $948 million. Shares rose 9% as full-year guidance exceeded analysts' views.

 
TIFFANY PROFIT RISES 16% ON SALES GROWTH

Tiffany's fiscal 2Q profit jumped 16% to $124.1 million, or 96c a share, as Americas and Asia-Pacific regions drove sales higher. Sales rose 7% to $992.9 million. Results beat analysts' views and it raised its earnings outlook for the year.

 
JUDGE FAST-TRACKS VALEANT, PERSHING SUIT

A Delaware judge has fast-tracked a lawsuit from Valeant Pharmaceuticals and hedge-fund manager William Ackman against Allergan, handing the pair a small victory in their hostile bid for the drug maker.

 
IMF CHIEF LAGARDE UNDER INVESTIGATION

A French court has put Christine Lagarde, head of the International Monetary Fund, under formal investigation for negligence in a corruption probe dating back to her days as France's finance minister.

 
SNAPCHAT FETCHES $10 BILLION VALUATION

Kleiner Perkins Caufield & Byers has agreed to invest in the fast-growing ephemeral message service Snapchat at a valuation of close to $10 billion, people with knowledge of the matter said.

 
 
 
 
  ======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES ======= 
 
 
Big Picture 
CONSUMERS HAVE CONFIDENCE BUT NOT LOTS OF CASH

The latest reading on consumer confidence, released by the Conference Board, shows households are as upbeat about the economy as they were in 2007, as the last expansion was about to end, writes Kathleen Madigan.

 
Heard on the Street 
MARKETS MAY EXPECT TOO MUCH FROM ECB'S DRAGHI

European Central Bank President Mario Draghi last week acknowledged that market expectations of future euro-zone inflation had been falling--and in doing so fanned the perception that the ECB could act at its meeting next week.