Tuesday morning headlines

Stocks edge lower: Disappointing earnings from Alcoa - one of the first big companies to report quarterly results - has investors worried about the recovery. Again. Dow is down about 20 points in early trading.

KB posts profit: It's the first time in three years that the L.A.-based homebuilder made money, though it was helped by a hefty tax gain of $191.7 million. CEO Jeff Mezger says the housing market appears to be stabilizing in some regions. (AP)

Budget nightmare: Thanks to Gov. Arnold Schwarzenegger's proposed cuts, hundreds of thousands of people in L.A. County face the loss of welfare checks, in-home care, and health and mental health services. From the Daily News:

County officials had prepared a report detailing the state budget's expected effect on the county but held off on releasing it Monday out of fears of scaring the public. They planned to add language clarifying that the budget was only a proposal and could change through the budget negotiation process.

Schwarzenegger pushes jobs: He's introducing a state ballot initiative designed to create 100,000 new jobs and attract business to the state. Columnist Dan Walters isn't impressed:

The new program would cost $500 million, but the governor wouldn't pay for it from the deficit-riddled budget; rather, he wants to borrow $500 million from a fund that pays workers when they lose their jobs due to illness or other disabilities - a fund that's financed solely by taxes on workers themselves. Let's assume, for a moment, that the 100,000-job figure is accurate, although that would take a giant leap of faith. Even if true, it would be scarcely a return to prosperity; California's unemployment has jumped by more than a million workers in the last couple of years.

Low bids for MGM: Nearly a dozen big-name outfits have submitted offers, among them Time Warner, Lions Gate, News Corp. and CBS. But the bids are far below the $3.7 billion that MGM owes its bank lenders. From the WSJ:

The low offers and MGM's complex capital structure could force the studio to seek protection from its creditors in bankruptcy court, and try to sell itself while in Chapter 11 proceedings, people familiar with the situation said.

Imports picking up: Cargo volume was higher in December than a year earlier, the first such gain in 28 months, according to the National Retail Federation (numbers for the two local ports will be available next week). From the LAT:

"It's the first strong sign that a recovery is finally underway, and it's being driven mostly by retailers restocking their inventories and by the impact of the economic stimulus package," said Ben Hackett, founder of Hackett Associates, a business consulting firm that tracks seaport, railroad and trucking industry volumes for some of the nation's biggest retailers.

Gas prices shoot up: Steady climb in the price of crude is having its effect. An average gallon of regular in the L.A. area is $3.10, up almost 7 cents from last week, according to the government's survey.

Park visits up: Yosemite had 4 million visitors in 2009, its highest turnout since the mid-1990s. More folks are driving closer to home than flying off to Europe. (Fresno Bee)

Bev Hills sentencing: Hedge fund manager Bradley Ruderman was given 10 years for cheating investors (including family members) out of more than $25 million. He also was ordered to pay $27.5 million in restitution. (AP)

Lacter on radio: This morning's business chat with KPCC's Susanne Whatley (Steve Julian is off) looks at the business impact of Pete Carroll's departure from USC and the latest on the merger of Live Nation and Ticketmaster. Also on kpcc.org and on podcast.