PRESS DIGEST - Wall Street Journal - April 17

April 17 (Reuters) - The following were the top stories in The Wall Street Journal on Thursday. Reuters has not verified these stories and does not vouch for their accuracy.

* Yahoo Inc (YHOO.O) moved closer to outsourcing its search advertising to Google Inc (GOOG.O), a move that could lead to a broader partnership between the companies.

* Technology companies from eBay Inc (EBAY.O) to EMC Corp (EMC.N) are embracing cash more than ever amid fears of an economic downturn.

* Five days after General Electric Co (GE.N) disappointed investors with a surprise first-quarter earnings slump, Chief Executive Jeffrey Immelt defended his strategy and dismissed cries to split up and remake the conglomerate.

* Profit slide at JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N) triggered a rally by beleaguered bank stocks. Earnings reports and comments by top executives of the two big U.S. banks included a slew of troubles -- more souring mortgages, write-downs of toxic securities and economic gloom -- but no particularly nasty new surprises for shareholders who have been pummeled by the credit crunch since summer.

* International Business Machines Corp (IBM.N) posted a 26 percent jump in first-quarter profit, supporting investors' hopes that corporate spending, especially overseas, may be a bulwark against the deteriorating U.S. economic picture.

* Toledo automobile-components supplier Dana Corp will announce the hiring of longtime Toyota Motor Corp (7203.T) manufacturing whiz Gary Convis as its new chief executive.

* SLM Corp SLM.N swung to a first-quarter loss and warned it can't make profitable loans at this time, prompting the nation's largest student lender to assess its operation and call for a "system-wide liquidity solution."

* Freddie Mac FRE.N is expected to announce an agreement with three major mortgage lenders aimed at making more funds available for large home loans. The agreement is with Wells Fargo & Co (WFC.N), J.P. Morgan Chase & Co (JPM.N) and Citigroup Inc (C.N), Freddie officials said.

* To help its efforts inside the Beltway, Kohlberg Kravis Roberts & Co hired Kenneth Mehlman, former chairman of the Republican National Committee and President George W. Bush's 2004 campaign manager, as a managing director and head of public affairs.

* Merrill Lynch & Co MER.N Chairman and Chief Executive Officer John Thain is close to landing his most significant hire yet -- Thomas Montag, a highly regarded Wall Street veteran who had been working at Goldman Sachs Group Inc (GS.N).

* More companies than ever are in the weakest of liquidity positions and struggling to cover their bills, according to a Moody's Investors Service Inc report on public debt.

* J.C. Penney Co (JCP.N) said it will continue to launch private-label brands to attract shoppers, despite a faltering economy and soft sales that are forcing the chain to trim plans for store openings.

* Federal Communications Commission Chairman Kevin Martin is bringing his campaign for unfettered Internet access to Silicon Valley, putting Comcast Corp (CMCSA.O) on the spot, despite the cable giant's efforts to back away from a policy of limiting the way customers download some Internet files.