Tuesday morning headlines

Stocks bouncing around: Consumer and tech issues are leading the way in early trading. Dow is up about 15.

Middling grades: Americans are split on Obama's handing of the economy (45 percent approve, 48 percent disapprove), according to a NYT/CBS poll, but 54 percent say the president doesn't have a clear plan for creating jobs.

Retailers cheer reform bill: The financial overhaul being finalized by Congress would reduce the "swipe fees" credit-card companies charge merchants for debit-card transactions. From the WSJ:

Though it is unclear how much the estimated $20 billion a year in debit-card fees paid by U.S. merchants would be reduced under Congress's proposal to have them regulated by the Federal Reserve--or what impact consumers might feel--some experts believe they could be cut by half or more, saving Wal-Mart Stores Inc. alone, the world's largest retailer, hundreds of millions annually.

Lead bidder for MGM: Spyglass Entertainment co-heads Gary Barber and Roger Birnbaum would run the studio as co-chief executives under a plan being discussed with creditors. From the WSJ:

Any deal would be executed in a "prepackaged" bankruptcy, in which a company lines up approval from many creditors in advance, with an eye toward spending less than two months in court proceedings. Under the restructuring plan, creditors would swap their debt for nearly all the equity in a restructured film studio. Spyglass executives would get a slice of that equity, though the details haven't yet been ironed out,

CPK cuts forecast: California Pizza Kitchen now expects second-quarter earnings of 10 cents to 15 cents a share, down from its prior forecast of 24 cents to 26 cents. The L.A.-based company suspended a promotion that had been bringing in customers. (Reuters)

OC pharma in merger: Valeant Pharmaceuticals of Aliso Viejo is being acquired by Biovail Corp. of Canada in a $3.2 billion deal. The consolidated company will retain the Valeant name. From the LAT:

Valeant was founded in 1959 by the flamboyant, controversial Milan Panic, who in 1992 took a leave from the company and served as prime minister of Yugoslavia. Slobodan Milosevic ousted him after nine months. Panic returned to run Valeant until 2002, when he stepped down amid boardroom fights, dissident shareholder suits and allegations of sexual harassment. In recent years, Valeant mostly switched from developing its own medications to buying up smaller drug companies. It also focused on introducing generic drugs in emerging markets in South America and other locales.

Cracks discovered on American 767s: One of them could have resulted in an engine breaking loose. The airline, along with Boeing and the FAA, are trying to find the cause of the cracking. From the WSJ:

The size and type of some of the cracks discovered in the pylons surprised Boeing, which now is drafting a service bulletin that in the next few days is likely to recommend substantially stepped-up inspections by virtually all 767 operators, according to people familiar with the details. The FAA, which has authority to mandate the changes, is expected to adopt most of Boeing's guidelines. The issue is attracting high-level attention inside the FAA,

Gas prices back up: An average gallon in the L.A. area is $3.13, up six cents from a week ago, according to a government survey.

Lacter on radio: This morning's business chat with KPCC's Steve Julian looks at why thousands of Lakers fans attending yesterday's parade weren't at work, and why the state owes workers so much in vacation and overtime pay. Also at kpcc.org and on podcast (Business Update with Mark Lacter)