Stocks in the News: Google, Walgreen, Wendy's

The following is a round-up of news likely to affect stock prices today:

Fannie Mae (FNM) and Freddie Mac (FRE) were effectively nationalized by regulators in September 2008. Ever since, their future role has been debated. Congress will hold its first hearing Tuesday about how to restructure the mortgage system that is still resting on three government pillars: Fannie, Freddie and the Federal Housing Administration. Officials have given few details on their long-term thinking.

Google (GOOG) stopped censoring its search results on the Internet in China by shifting its search engine from the mainland to Hong Kong on Monday. Google said it will maintain other operations in the country. Google also won a key European Union court ruling Tuesday that says it did not violate luxury goods trademarks by allowing counterfeiters to buy brand names as advertising key words that link to their online stores.

Adobe (ADBE) is expected to post earnings of 37 cents a share, and Walgreen, earnings of 71 cents a share. Jabil Circuit (JBL) Carnival (CCL) and Darden Restaurants (DRI) are also reporting results Tuesday.

Walgreen (WAG) said Tuesday that its fiscal second-quarter profit rose to $669 million, or 68 cents a share, as sales rose to $16.99 billion from $16.48 billion. The company would have earned 70 cents a share, excluding one-time items, a penny below estimates. Revenue also missed forecast.

KB Home (KBH) reported a narrower fiscal first-quarter loss of $54.7 million, or 71 cents a share as revenue fell 14% to $264 million. Analysts expected a smaller loss and higher revenue. Shares fell 1% in premarket trading.

Phillips-Van Heusen (PVH) reported late Monday it swung to a fourth-quarter profit of $27 million, or 51 cents a share, or 61 cents a share on an adjusted basis as revenue rose 6% to $614.5 million. Results topped analyst estimates on both counts.

Time Warner (TWX) reportedly leads the bidding for MGM. Others that may have offered to buy MGM include Lions Gate Entertainment (LGF) and billionaire Len Blavatnik's Access Industries with bids of $1.2 billion to $1.5 billion.

Triumph Group (TGI) said it's going to buy Vought Aircraft Industries from private equity company The Carlyle Group for $1.44 billion in cash and stock.

PepsiCo (PEP) concludes its two-day analyst meeting Tuesday. If on Monday execs discussed the company's food business, on Tuesday they plan to focus on the beverage business.

Royal Dutch Shell (RDS.A) and PetroChina (PTR), a day after buying Arrow Energy, said Tuesday they had agreed to a gas explorations deal.

Nintendo (NTDOY) said Tuesday it would begin selling a 3-D version of its popular hand-held console within a year -- the "Nintendo 3DS," which will feature a 3-D display without the need for glasses.

Ariad Pharmaceuticals (ARIA) said Monday a federal court maintained its ruling that Eli Lilly & Co. (LLY) did not violate a patent held by Ariad.

Wendy's/Arby's Group (WEN) announced an increase in its stock repurchase authorization late Monday. Shares advanced 2.5% ahead of the bell.

Massey Energy (MEE) said it intends to offer 8.5 million shares of common stock. Shares fell 3.6% before the bell.