Friday morning headlines

Market cool to GDP: Stocks are up in early trading, but not by much - perhaps because the data shows that consumers cut their spending in the second quarter.

About that GDP: Calculated Risk isn't all that impressed with the second quarter numbers, noting that this marks the fourth consecutive quarterly decline in the gross domestic prioduct, the first time that's happened since the government started keeping quarterly records in 1947.

"Clunkers" program reviving?: White House economic advisor Christina Romer tells CNBC that cash for clunkers is still on, despite the government having run out of cash, and AP reports that House members are looking to shell out another $2 billion.

Earnings offer hope: Quite a few companies are coming in with better-than-expected second-quarter numbers, which is sometimes an indication that a recession has run its course. Of course, there are caveats galore. From the WSJ:

Revenues remain weak, and overall, cost cuts have not been enough to prevent results from eroding. Overall, Standard & Poor's estimates operating income for the members of its S&P 500 index declined 16% and revenue fell 11.5% in the second quarter versus the same period the previous year. "Less bad is still acceptable today," said Howard Silverblatt, chief index analyst at S&P.

[CUT]

Another troubling sign is the number of companies that credited accounting quirks, not increased demand, for better-than-expected results. Ford Motor Co. last week said it swung back to profitability after four straight quarters of losses, largely due to a gain from restructuring its debt.

Gas edges higher: An average gallon in the L.A. area is $2.862, up 1.7 cents from last week, according to the Auto Club. An upward turn had been expected.

Southwest bid questioned: The carrier's surprising interest in Frontier Airlines, now in Chapter 11, doesn't do much for Dallas Morning News aviation writer Eric Torbenson.

The fleet issue alone is a head-scratcher. Frontier's got a bunch of Airbus planes that Southwest doesn't fly, and the idea that Southwest wants to buy Frontier and somehow "integrate" it into its operation just simply goes against every instinct this airline has cultivated in its 35 years of being simple and efficient. Am I wrong? Maybe the answer is their plan is to dump them and put some of their new 737s into place. I don't get it.

Platinum Equity looks at BW: The Bev Hills private equity firm - and new owner of the San Diego Union-Tribune - is going over the business magazine's books, along with several other potential bidders. Another L.A. firm, OpenGate Capital, is believed to be sniffing around. (Business Week)