Wednesday morning headlines

Oil down, stocks up: The markets continued their encouraging ways this morning, with Wall Street getting an extra lift from a report showing that U.S. private employers added 9,000 jobs in July. Analysts had expected a fall.

Oil prices may not stay down: There's lots of skepticism about whether the recent plunge in crude prices is sustainable. One analyst says that prices could fall to around $100 a barrel before shooting right back up. This morning, oil was running at around $121, down from its peak of $147 just a few weeks ago. From CNBC:

Bullish long-term structural issues such as growing Asian demand and lackluster non-OPEC supply growth remain unresolved, market bulls argue, suggesting the market may have yet to see the highs, regardless of indicators on candlestick charts. "We've seen a spectacular rise, so 20 percent is not a bear market at all," said Mark Pervan, commodities analyst at ANZ Bank. "This is really steam coming out of the market." "We can't realistically expect it to remain around these levels with new demand coming into the market."

Bankruptcy filings: They're starting to pile up. As expected, Mervyn's, which operates mainly in California, filed for Chapter 11 bankruptcy protection, and so did the restaurant chain Bennigan’s. (I came across California locations in Glendale, San Diego and Santa Clara.) Only half way through 2008, billion-dollar bankruptcies are at their highest level in five years, and some companies, like Bennigan's, are choosing to file for liquidation as opposed to reorganization. Mervyn's will remain open during the reorganization process. From the LAT:

The filing came on the anniversary of the company's founding by Mervin Morris. "Fifty-nine years ago this very day we opened the first store and it was a huge success," Morris, 88, said Tuesday. "A huge success means we took in $1,500, and I thought I died and went to heaven. And today is a very sad day for me."

Brokers for LAT property: Cushman & Wakefield has been hired by Tribune Co. to market the paper's headquarters at 1st and Spring streets. Prices have not been set, but in the past the property has been valued at about $150 million. Also being put on the market is Tribune Tower in Chicago. The Times complex is a collection of five interconnected structures built between the 1930s and the 1970s. (LAT)

Fast food ban: The measure that passed the L.A. City Council on a unanimous vote would bar fast-food restaurants from opening in South Los Angeles for at least a year. The moratorium gives the city time to figure out how to attract sit-down eateries that tend to serve healthier fare. The ban covers a 32-square-mile area for one year, with two possible six-month extensions. (LAT)

Valley takes big hit: The median price of a San Fernando Valley home in June fell 34 percent from a year earlier, which was the record-high ($655,000). The price dropped 4 percent from May, and is now nearing 2004 levels. A big reason for the price declines is a jump in foreclosures. Actually, June home sales declined only 3 percent from a year ago. (Daily News)