Today was one of those strange days where you could find good news and winners, as long as you didn't look at the ticker tape. The Institute for Supply Management posted a reading of 49.6% for may, above 48.6% in April and above the 47.9% reading for April. While this was higher, we also saw a 250 basis point rise to 87.0% in the pricing index. The report from the US Commerce Department also showed another drop in construction spending of -0.4% in April after seeing a -0.6% reading for May. Below are the unofficial closing bell levels for major US index levels:

• DJIA 12503.49 (-134.83)
• S&P500 1385.71 (-14.67)
• NASDAQ 2491.53 (-31.13)
• 10YR-treasury 3.971% (-0.75%)
• 52-WEEK LOWS
• TOP 10 ANALYST CALLS

Today was a strange day in financial stocks, particularly in the brokerage firm sector. S&P downgraded several brokers and banks and the brokerage firm Lehman Brothers Holdings Inc. (NYSE: LEH) was hit the worst in the group. Its stock was down 8% at $33.83 in the final minutes of the day.

Radio World reported that Harris Corp. (NYSE: HRS) might sell itself. I just spoke with an analyst who said that there's a rumor that the suitor might be military contractor General Dynamics (NYSE: GD).

Harris is based in Melbourne, Fla., and has a market capitalization of $7.3 billion. Perhaps Harris thinks its growth potential in the defense industry is "less attractive" than anytime since Sept. 11, 2001. Harris has 16,000 employees and reported $5.1 billion in revenues and net income of $410 million over the last 12 months, ending March 28, 2008.

General Dynamics may be able to cut costs and increase revenues by combining the two firms. And Harris stock is clearly rising -- it's up 2.8%. Could it be due to this rumor? Please comment if you know more.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

MAJOR PAPERS:

• Harris Corporation (NYSE: HRS), concerned about its future growth, may see limited opportunity and may consider selling itself, the Wall Street Journal reported. If it does decide to sell, suitors could include Raytheon Company (NYSE: RTN), BAE Systems Plc (OTC: BAESY) and Northrop Grumman Corporation (NYSE: NOC).
• The Wall Street Journal reported that, in an attempt to toughen its regulation standards, SEC chairman Christopher Cox said earlier this week the agency would push Wall Street investment houses will have to reduce borrowing and rely less on short-term financing.
• As part of plans to reduce costs and restore profit growth, people close to the situation said that Citigroup Incorporated (NYSE: C) is likely to today identify up to $400B in non-core assets that could be sold. Additionally, the Financial Times reported that Citigroup CEO Vikram Pandit will confirm his pledge to cut the bank's cost base by about 20% at a meeting with analysts today. Sources familiar with the matter believe Pandit will dismiss calls for a break-up of the company.

OTHER PAPERS:

• According to sources, the New York Post reported that the ax may fall as early as next week on some investment bankers at The Bear Stearns Companies Inc (NYSE: BSC).