Wednesday morning headlines

Dow approaches 10,000: Encouraging earnings reports by JP Morgan and Intel are being offset a bit by so-so retail sales numbers for September (much of it due to the drop in car sales). Dow is up about 80 in early trading. This could be a good day to keep an eye on the market.

Big profit for JP Morgan: Much improved numbers are the result of higher fees and increased earnings in the investment banking area. Countering those gains were losses on credit cards and mortgages. From the NYT:

Although the recession weighed heavily on its businesses, JPMorgan appears to be taking advantage of the financial crisis to leapfrog over rivals in the investment banking rankings and expand its consumer lending franchise. It added another $2 billion to its consumer credit reserves for future losses and still dwarfed analysts' expectations of earnings of 51 cents a share. JPMorgan said net income rose to 82 cents a share from 9 cents a share in the third quarter of 2008. Revenues grew to $28.8 billion compared with $16.1 billion from the quarter a year ago.

Bonuses taking off: Major banks and securities firms are on pace to pay their employees a record-high $140 billion this year, according to a WSJ study, despite all the furor about excess Wall Street compensation. Some firms, though, have reduced pay.

The growth in compensation reflects Wall Street firms' rapid return to precrisis revenue levels. Even as the economy is sluggish and unemployment approaches 10%, these firms have been boosted by a stronger stock market, thawing credit market, a resurgence in deal making and the continuing effects of various government aid programs.

Good news at Intel: Better-than-expected earnings suggest a rebound in the sales of laptop PCs and other tech products. From the WSJ:

"People have been underestimating demand for a long time," said Unni Narayanan, chief executive of Primary Global Research. Among other things, he said, PC makers are placing orders on the expectation that Microsoft Corp.'s Windows 7 operating system--to be formally released Oct. 22--will get customers buying. Paul Otellini, Intel's chief executive officer, told analysts that the company was seeing unit sales of chips for conventional notebook PCs growing at a faster rate than sales of its Atom chip for popular low-end portable computers called netbooks.

Foreclosure forecast: They'll continue to climb through late next year, peaking out when the unemployment rate peaks out, according to the Mortgage Bankers Association. (AP)

Dole slips: In the six years since going private, the Westlake Village food company has lost half its value. Dole is in the process of selling a 41 percent stake to the public, which leaves billionaire David Murdock still in control. Part of the offering's proceeds would help Murdock reduce debt. (LAT)

Outflows at American Funds: The L.A.-based money management giant has seen investors take more money out than bring in. Year to date (through Sept. 30) American Funds suffered a net cash outflow of $19.3 billion (2.2 percent of its asset total). One reason is that the firm focuses on equities, which investors remain skittish about. (LAT)

Look out for gas prices: An average gallon in the L.A. area fell by another four cents or so - it's at $3.03, according to the government's weekly survey - but that could change with oil prices marching upward (they reached a one-year high this morning).

Santa Anita back on block: Socal's venerable track is one of several famous venues that are up for sale - again. They're owned by Magna Entertainment, which has filed for Chapter 11 bankruptcy. Creditors haven't been happy with the process, suggesting that Magna founder Frank Stronach is trying to keep control of the tracks. (DJ)

Redstone pays off creditors: His privately held National Amusements is selling about $1 billion worth of its holdings in CBS and Viacom, which should be enough to settle outstanding claims by creditors. Redstone retains voting control in both media companies. (WSJ)