Thursday morning headlines

Retailers take hit: January is never great for merchants but last month's sales figures were especially bad, even worse than expected. Wal-Mart posted a 0.5 percent gain, well below its 2 percent forecast. But lots of chains did badly - Thomson Financial reports that 14 retailers missed expectations, while nine beat estimates and one matched. Perhaps reflective of the consumer mood, discounter Costco had a 7 percent increase. The International Council of Shopping Centers says that an overall decline in same-store sales is possible, and that hasn't happened since 1969. From AP:

The disappointing sales figures made it clear that consumers wrestling with high gas and food prices, a slumping housing market, an escalating credit crisis and a weakening job market retrenched further, buying mostly necessities, even when redeeming their holiday gift cards. The disappointments cut across all sectors including teen retailers like Pacific Sunwear of California Inc., and mall-based apparel chain Limited Brands Inc. Even affluent shoppers are pulling back, hurting stores like Nordstrom Inc.

Restaurant chains struggle: IHOP stock is still struggling this morning after being downgraded by Raymond James, while CPK is up sharply after also being downgraded (the mid-priced restaurant category has been taking it on the chin). Also trying to pick up steam is Cheesecake Factory, which fell 9 percent yesterday after reporting a 35 percent earnings decline in the fourth quarter. Cheesecake has cut in half its planned restaurant openings for the year. (WSJ)

Port told to clean up: Two environmental groups have given the Port of Long Beach 90 days to reduce diesel soot and smog or face a federal lawsuit. The Natural Resources Defense Council and the Coalition for a Safe Environment are behind the ultimatum (the groups are negotiating a deal with the adjacent Port of Los Angeles). From the LAT:

The environmental groups' strategy differs radically from previous legal challenges against the port that targeted specific polluters or flaws in environmental impact reports. Instead, it seeks to have the port complex treated as a single entity subject to court-monitored benchmarks and progress reports. The lawsuit would be brought under the federal Resource Conservation and Recovery Act, which was designed to protect the public from harm by sites contaminated with hazardous waste. In this case, the waste includes thousands of tons of microscopic diesel particulates emitted each year by freight haulers.

Density plan approved: The L.A. City Council signed off on an ordinance that would allow developers to build taller, larger buildings if they include units for lower-income residents. To help alleviate the objections of homeowner groups, the council tweaked the rules by requiring developers to get special approval if they want to add extra height for a building within 50 feet of a house. Homeowners groups and neighborhood council members still said the law will allow tall, bulky, out-of-character buildings in L.A. communities. "It's a developer's dream," said David Garfinkle with Tarzana Property Owners Association. (Daily News)

New hope for C-17?: Union officials say they're cautiously optimistic after meetings on Capitol Hill. In December, a congressional committee approved an Air Force request for between eight and 14 additional C-17s, though there's no funding so far, and the Bush administration has wanted to mothball the program. Construction is set to end in mid-2009 unless more orders are made. The C-17 program, which supports more than 6,000 local jobs, has been kept alive by a string of small orders approved by Congress (under huge lobbying pressure). (Press-Telegram)

Marv Albert gets new deal: TNT's lead play-by-play man will be around through the 2015-16 season. The new contract allows Albert to continue working on a full schedule of post-season NBA games. (Variety)