Tuesday morning headlines

Stocks slide: Disappointing earnings news from Johnson & Johnson has gotten the market off to a bad start. Dow is down about 50 points in early trading.

Recovery a mirage?: J&J notwithstanding, corporate earnings are looking good, but that's only because of cost-cutting. Actually, there are deep concerns about the strength of the economy. From the WSJ:

Job growth and any significant rise in business spending could be a long time coming. That creates a chicken-and-egg problem at a time when the unemployment rate is already nearly 10%: Without more jobs, U.S. consumers will have a hard time increasing their spending; but without that spending, businesses might see little reason to start hiring.

Theme park in a store: Disney is once again rehabbing its 340 retail stores, this time by adding a bunch of high-tech touches that will make them look more like entertainment centers. The new look will be introduced in Socal next year. From the NYT:

Theaters will allow children to watch film clips of their own selection, participate in karaoke contests or chat live with Disney Channel stars via satellite. Computer chips embedded in packaging will activate hidden features. Walk by a "magic mirror" while holding a Princess tiara, for instance, and Cinderella might appear and say something to you.

Health care bill vetoed: Gov. Schwarzenegger said no to a measure that would have restricted the ability of insurance companies to cancel the policies of sick patients. The governor said regulators have implemented reforms that are protecting those people. (LAT)

Bad times in Hawaii: Occupancy at the state's resorts fell 66.9% in the first eight months of 2009, the lowest level since the same period in 1993. Revenue per available room has fallen nearly 25 percent in the past two years. From the WSJ:

This isn't the situation investors anticipated when they began buying up Hawaiian resorts during the real-estate boom. Between 2004 and 2008, dozens of resorts traded hands at prices that ran as high as $800,000 a room, according to Hospitality Advisors LLC, a Honolulu-based hotel-consulting and management company. In many cases, the new owners planned costly expansions and renovations designed to upgrade the aging resorts and offer a higher level of service, and then brought in managers with prestigious brand names to operate the hotels.

Changes at LAT magazine: Kevin posts about the departure of editor Annie Gilbar and the promotion of deputy editor Nancie Clare to the top spot. Of perhaps greater note is that the Sunday magazine will resume being a newsroom product (instead of being under the auspices of the business department).

DVRs improve ratings: Who needs prime time and commercials? New ratings data show that audience totals increased substantially when the seven-day DVR playback results were factored in. From the NYT:

David F. Poltrack, the chief research officer for CBS, argued that, without reservation, "the DVR is a good thing for network television." He said, "One thing that has most limited viewing was shows being on against one another. The DVR has made it easy to watch any show you want." Over all, Mr. Poltrack said, the numbers released Monday mean that advertisers are getting more bang for their buck. "It is showing that the relative value of our product is getting better," he said.

Lacter on radio: This week's business chat with KPCC's Steve Julian looks at the foreclosure mess and the new housing forecasts for 2010. Also at kpcc.org and on podcast.