Wednesday morning headlines

Economy still ticking: The gross domestic product, which provides an overall scorecard on how the nation’s economy is doing, managed to grow at a 0.6 percent annual rate in the first quarter, which matches the fourth-quarter performance. Sure, growth is anemic - 3 percent or so is the historic average for a quarter - but as they say down in Florida, just consider the alternative. So how was there any growth at all, given the lowly expectations by many analysts? From the NYT:

The biggest contribution to first quarter growth came from business inventories, which grew by $1.8 billion. While the expansion implies that businesses produced more at the beginning of the year, it also suggested production might slow as companies hunker down in the face of smaller consumer demand. Red-hot export sales, fueled by foreign buyers attracted to the inexpensive dollar, again propped up American business sales even as domestic demand shrank. But the support from exports appeared to slow; foreign sales of American goods grew 5.5 percent in the first quarter, compared to 6.5 percent at the end of last year. Import activity also grew, which takes money out of the domestic economy.

Waiting for the Fed: The nation's central bank is expected to cut interest rates another quarter of a percentage point, to 2 percent. Wall Street has pretty much factored in the rate cut, so the focus will be on the Fed's statement that accompanies the announcement, scheduled for 11:15.

Relief on defaults?: This may or may not be a big deal, but the number of borrowers who were delinquent on their home loans rose at a slower pace in April than in March. It was the third month in a row that's happened. As you might expect, opinion is split on whether this indicates the subprime problems are starting to stabilize. At this point, the crunch may be felt more by folks who are losing their jobs - as opposed to folks who got caught in the subprime squeeze. (WSJ)

Sign of the times: Guess what company is doing well? Corning, which specializes in glass that's used in flat-screen TVs. First-quarter earnings tripled and sales increased 24 percent. As Marketbeat's David Gaffen notes, economic bad times can be "good for the glass."

Since 1965, the only recession that produced a sharp decline in TV sales was in the mid-1970s. “When you really think about it, TVs, not dogs, are man’s best friend,” says Kevin Depew, executive editor of investing Web site Minyanville.com. “They cost less to maintain, require no feeding or walking, no vet bills, they don’t bite, bark or go to the bathroom on the carpet, and they are always there for us when we need them.”

Microsoft to decide: Kara Swisher at BoomTown hears that there could be a big announcement today on whether Microsoft finally launches a proxy fight for Yahoo or finally decides to walk. There's also the possibility that Microsoft will raise its bid, but Swisher says that's unlikely.

No progress in SAG talks: After two weeks of negotiations, there's virtually no chance that a deal with the networks and studios will be reached this week. It seems that the Screen Actors Guild is not budging from its initial positions and come Monday the media companies will begin working on a separate deal with AFTRA, Hollywood's other actors union. From Variety:

Should SAG decide to hold off on making a deal this week, that tactic would reflect the belief that the guild will achieve sweeter terms when it's much closer to the June 30 expiration -- and a possible strike. Going that route runs the risk of AFTRA signing a deal first and using that pact to sign new shows shot on digital, since both unions cover that area of jurisdiction.

Miley generates record traffic: I know this will come as a shock, but VF.com has scored 1.8 million unique visitors after posting the semi-naughty pics of Hannah Montana (aka Miley Cyrus) that are featured in the June Vanity Fair. (Silicon Alley Insider)

LAX chief denies impropriety: Gina Marie Lindsey says there's nothing to the rumors and rumblings that she improperly steered a big contract to L.A.-based DMJM instead of Bechtel (the DMJM group is headed by someone who Lindsey worked with in Seattle). "It's simply not true," Lindsey said. She met with City Councilwoman Janice Hahn and plans to discuss the contract selection process during the Board of Airport Commissioners meeting on Monday. (Daily Breeze)

More moola for Chandlers: Tribune Co. will shell out $175 million for the LAT property in downtown L.A. The Chandler family trust had kept the downtown real estate, so Tribune has had to pay rent. The deal, which saves Tribune $24 million in annual lease payments, is structured so that capital gains taxes can be deferred. Boy, Sam Zell really doesn’t like paying taxes. (LAT)