Friday morning headlines

Stocks inching back: The government's report showing sluggish second-quarter growth has investors scratching their heads. Dow was down about 30 points in early trading, but it's coming back.

Growth slows: The economy grew at an annual rate of 2.4 percent in the second quarter, down from 3.7 percent in the previous three months. Consumer spending fell to an anemic 1.6 percent. From Bloomberg:

"The economy is muddling through," Ethan Harris, head of North America economics at Bank of America-Merrill Lynch Global Research in New York, said in an interview after the report. "We're probably not going to see a really strong number for a while. We need to see some pickup in job growth." A slower pace of growth means employers may be reluctant to hire workers and more likely to keep a lid on prices in order to boost sales.

Previous growth revised downward: Turns out the recession was deeper than the government originally estimated, mostly because consumer spending grew more slowly and home-building fell more sharply. From the WSJ:

The overall depth of the latest recession surpassed any other downturn since the late 1940s. GDP fell by 4.1% from the fourth quarter of 2007, when the recession officially began, and the second quarter of 2009, when many economists believe it ended. The previous estimate for the overall decline was 3.7%.

American Apparel's auditing firm quits: Deloitte & Touche is resigning after 15 months with the L.A.-based company. An SEC filing says that the accounting firm identified "material weaknesses in internal control over financial reporting." AA stock is down. (LAT)

Miramax deal is done: Finally, Disney completes the sale of the movie company to a consortium led by construction tycoon Ron Tutor for $660 million. (The Wrap)

Response to "Sex Probe" story: Outgoing ABC Entertainment head Steve McPherson has brought on tough-talking attorney Marty Singer to challenge THR's report that he was the subject of a sex harassment investigation. Nikki Finke has the lawyer letter Singer sent to the Reporter.

Harman might get Newsweek: The Socal billionaire - and husband of South Bay Rep. Jane Harman - is considered a front-runner for the newsweekly, the NYT reports. Two other parties are said to remain in the hunt.

LAX-Istanbul: Turkish Airlines is adding service to Los Angeles early next year, part of an ambitious expansion plan for the carrier. From the WSJ:

The airline will continue to grow 15% to 20% annually in coming years, he says, just as it has for the past seven. With 175 destinations, the Turkish flag carrier is on track to become Europe's third-biggest full-service airline by passenger numbers this year, overtaking British Airways PLC. Mr. Kotil has his eye on Europe's top full-service spot, currently held by Lufthansa AG.

Little change in gas prices: Average gallon in the L.A. area is $3.122, according to the Auto Club.

Dr. Phil buys in Bev Hills: The daytime talker (aka Phil McGraw) has purchased a 14,000-square-foot estate for $29.5 million. Main house has five bedrooms and 11 bathrooms. (WSJ)