Wednesday morning headlines

Mixed market: Dow was down over 100 points in early trading and now it’s up over 100. Still no sign of buying and holding. (AP)

Speaking of lousy numbers: Black Friday's brief flurry of buying couldn't offset what was a terrible retail month. Sales of electronics and appliances tumbled 25.2 percent compared with the same month last year, according to MasterCard Advisors. Luxury goods were down 24.4 percent, and specialty retail, which includes clothing and department store sales, fell 20.2 percent. From the NYT:

The next few weeks will show whether retailers can maintain the momentum generated on Black Friday. Jennifer Black, president of Jennifer Black & Associates, which follows apparel retailers, said in a report this week that it was most likely “just the beginning of a longer-term ratcheting down of apparel consumption in the United States.”

Tensions at SAG: The moderate wing of the actors union sent out an email that questions whether the union leadership has done all it can to avoid a labor action. The guild is in the process of preparing for a strike authorization vote this month after talks with the studios and networks broke down. From the LAT:

Tuesday's letter, however, stopped short of specifically recommending how SAG members should vote, reflecting the tightrope the new board members are walking between supporting their union in a time of conflict with the studios and living up to the expectations of those who elected them. Nonetheless, the letter was interpreted by many of the group's supporters as a signal to oppose the authorization vote.

Airlines cut capacity: Delta says it will eliminate up to 10 percent of domestic seats next year. Southwest will trim its flight schedule by up to 5 percent, starting next month. Bookings slowed in November. (WSJ)

Big satellite bids fail: The government has selected Lockheed Martin to build a bunch of weather satellites, beating out Boeing and Northrop Grumman. Both losing companies would have built the things locally, so it's a blow to Socal’s aerospace industry. Lockheed said much of the work will be done in Newtown, Pa. From the LAT:

The loss was particularly hard for Boeing, which has had three major setbacks related to its satellite business this year, including losing a jury trial over a disputed satellite contract and losing a multibillion-dollar contract to build GPS satellites for the Air Force. Boeing had built the current generation of weather satellites, one of which is in service. Two others are waiting to be launched next year.

Medtronic sued: The family of a Vista woman is blaming her death on the company's bone-growth protein. The woman, Shirley Nisbet, went into respiratory arrest and died after neck surgery. Both the Justice Department and Congress are looking into the use of the Infuse Bone Graft for purposes not approved by the FDA. No comment from the company. From the WSJ:

The lawsuit alleges Ms. Nisbet, of Vista, Calif., underwent the surgery Aug. 21, about seven weeks after the FDA had warned that Infuse in neck surgery had caused "life-threatening complications." That July 1 advisory also linked Infuse to "compression of the airway," difficulty swallowing or breathing and the need for breathing tubes. The suit alleges that Ms. Nisbet went in for surgery to treat neck pain, but that afterward she had swelling in the neck, then difficulty swallowing and breathing.

More trouble at Broadcom: One of its senior VPs, Vahid Manian, didn’t earn degrees from UC Irvine that are listed in his company biography. Manian apparently attended classes for four years, but didn’t graduate. The discrepancy was uncovered by Barry Minkow, the ex-con turned corporate crusader. (Bloomberg)

Investors sue Paramount: They claim that the studio gave them false and misleading information concerning a slate of movies. The group now expects to lose their entire $40.1 million investment and is asking the court to hold Paramount liable. (NY Post)