Tuesday morning headlines

Stocks take big tumble: Overseas markets fell sharply, and U.S. stocks appear to be following suit. Dow is down more than 200 points in early trading.

Home prices edge higher: Case-Shiller index shows a 0.7 percent increase in L.A. between March and April and a 7.8 percent jump from April 2010 to April 2009. The numbers were boosted by the expiration of the federal first-time home-buyer tax credit. (press release)

Grim forecast: California will show negative growth in the July-September quarter and only slight growth in the final three months, according to a report by California Lutheran University's Center for Economic Research and Forecasting. The only area looking good is international trade. (Ventura County Star)

Consumer confidence plummets: This is probably not helping the market this morning. From Conference Board press release:

Says Lynn Franco, Director of The Conference Board Consumer Research Center: "Consumer confidence, which had posted three consecutive monthly gains and appeared to be gaining some traction, retreated sharply in June. Increasing uncertainty and apprehension about the future state of the economy and labor market, no doubt a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence. Until the pace of job growth picks up, consumer confidence is not likely to pick up."

Small business still worried: June survey by Discover Financial Services finds 43 percent of those questioned saying economic conditions are getting worse and 30 percent say they're improving.

Treasury yields tank: The 2-year note is now at 0.62 percent. Don't spend it all in one place. (CNNMoney)

Staying close to home: More locals will be going away this Fourth of July weekend than a year ago, but they'll be traveling shorter distances and looking for deals. As usual, the top three destinations are San Diego, Vegas and SF. (Auto Club)

Gas prices inch higher: Average gallon of regular in the L.A. area rose only about a penny from last week, to $3.143. As expected, prices have been edging up in recent weeks. (EIA)

Dems search for a vote: The death of Sen. Robert Byrd complicates passage of the financial reform overhaul. The House is on track to pass the legislation this week. From the NYT:

Despite his physical struggles in recent years, Mr. Byrd was a reliable Democratic vote at crucial procedural points, and his death early Monday deprived party leaders of a sure supporter of the Wall Street regulatory measure that they hoped to send to President Obama by the end of the week. "We are down a vote," said Senator Richard J. Durbin of Illinois, the No. 2 Democrat. "We have got some work to do."

Giving up on box-office futures: The financial reform legislation would outlaw trading in futures contracts based on box-office results, so Cantor Fitzgerald has dropped the idea. (LAT)

CA lawmakers head home: Without a budget deal, there's not much point in them remaining in Sacramento - or so they say. From the Sacramento Bee:

Assembly Speaker John A. Pérez and Senate President Pro Tem Darrell Steinberg, Republican legislative leaders and the 10-member joint budget conference committee are expected to continue talking during the recess about how to close the state's projected $19.1 billion deficit.

Oprah back on top: After Forbes dumped her last year as the most powerful celebrity (improbably to Angelina Jolie), the Queen of all Media is once more in the top spot, earning $315 million in the past 12 months. Beyonce is No. 2.

Lacter on radio: This morning's biz chat with KPCC's Steve Julian looks at why state government can't enforce regulations very well. Also at kpcc.org and on podcast (Business Update with Mark Lacter).