Friday morning headlines

Market malaise: The Dow would have to jump 3 percent in today's session for January to end up on the plus side - a pretty unlikely scenario. So should we be worried about the so-called January Barometer, which holds that this single month determines how the rest of the year goes? Analyst Mark Hulbert says not to worry:

Consider the indicator's record using the Dow back to its inception in the late 1800s. Over the ensuing 113 years, it has been correct 72 times--for a success rate of 64%.

About the GDP: The 5.7 percent rate of growth looks good, but most of it - 3.39 percent - came from the restocking of depleted inventories, not consumer spending. From AP:

The report provided an upbeat end to an otherwise dismal year: The nation's economy declined 2.4 percent in 2009, the largest drop since 1946. Still, economists expect growth to slow this year as companies finish restocking inventories and as government stimulus efforts fade. Many estimate the nation's gross domestic product will slow to a 3 percent rate in the current quarter and to about 2.5 percent for 2010.

Budget cut details: L.A. city officials will receive recommendations today on where they should lay off 1,000 workers over the next five months. A preliminary report has proposed cuts in libraries, human services and neighborhood councils. From the Daily News:

Unlike most years, when the mayor releases his budget proposal in late April, Villaraigosa has begun the process early - hoping to deal with the current-year deficit and reduce the expected $400 million shortfall for next year. As part of the contract with unions, the city is allowed to reopen discussions once revenues drop below $100 million. Union leaders have questioned the city's estimates, saying it has yet to achieve the full savings from an Early Retirement Incentive Program designed to reduce the city work force by 2,400 employees.

Honda recalls: A total of 646,000 Fit/Jazz and City models globally, including 140,000 in the United States, have been recalled to fix a defective master switch, which could cause water to enter the power window switch and in some cases cause a fire. (Reuters)

Burkle angles for Barneys: The L.A. billionaire has offered to pump at least another $50 million into the high-end fashion chain through a loan deal that would leave him owning 80 percent of Barneys' common equity. Barneys' owner, Istithmar World Capital, the investment arm of state-owned Dubai World, has said no thanks. From the WSJ:

In early 2009, some financing companies known as "factors" were refusing to finance shipments to Barneys from designers and manufacturers. Mr. Burkle, in his letter, said he believes the company may again need an injection of capital to placate vendors and factors. "We are concerned that even the slightest change in vendor payment terms may have dramatic and unfortunate implications on the company's liquidity position," Mr. Burkle wrote. Barneys said it is receiving merchandise on time from vendors and has no need for additional cash.

Trouble for teachers fund: The California State Teachers' Retirement System, or CalSTRS, reports a $43-billion shortfall and says that as of June 30, 2009, it could only meet 77 percent of its future pension obligations. From the LAT:

CalSTRS must increase its contributions -- from employers, employees or a combination of the two -- by 22% to be fully funded three decades from now, Ehnes said. But getting a contribution-hike bill through the Legislature and signed by the governor in the current election year is problematic, [CEO Jack Ehnes] acknowledged. The state faces a $20-billion budget deficit, and the spending plan proposed by Gov. Arnold Schwarzenegger would reduce spending on schools from kindergarten to 12th grade by $2.4 billion on top of a cut of $13 billion last year.

Wine shipments dip: A 4 percent drop for the first 11 months of last year, though the state's seven largest producers saw sales overall grow by nearly 7 million cases. (LAT)

NYT in SF: The Times picks up another 1,100 or so Bay Area subscriptions after launching its San Francisco section last fall. Single-copy sales are up too. (SF Business Times)

Small drop in gas prices: An average gallon of regular in the L.A. area is $3.028, a penny and a half lower than last week, according to the Auto Club.