Thursday morning headlines

Stocks edging higher: Another batch of upbeat earnings reports. Dow is up about 10 points in early trading.

Gloomy outlook: Economists are ratcheting down their forecasts for growth and employment, according to the quarterly AP survey. Still, most don't think there will be a double-dip recession.

Cutting back on doctor visits: Americans also aren't having as many tests, filling as many prescriptions, and undergoing as many elective procedures. From the WSJ:

The new trend comes amid a broader drop in health-care use as more Americans lose their jobs and their health insurance. Such cutbacks have happened before in recessions, but the drop seems to be more pronounced this time, industry analysts say. More Americans also are buying high-deductible health plans that force them to bear more of the upfront costs for health services.

Furloughs are baaaack: State workers will be required to take three unpaid days off per month until lawmakers pass a budget. About 156,000 employees are affected. (Sacramento Bee)

No OT for farm workers: The governor vetoed legislation that would have given them the same rights to overtime pay as all other hourly workers. Says it would put a strain on the state's agriculture industry. From the LAT:

Supporters of the bill countered that it's simply wrong to treat the people who tend and pick crops differently from the workers who pack the produce into boxes or sell the fruits and vegetables in grocery stores. Those related jobs carry extra pay for work beyond eight hours a day.

Sexual harassment claim against ex-ABC executive?: THR source says Steve McPherson resigned as the network's entertainment head while an internal investigation was being conducted.

A source says multiple harassment complaints were made involving the entertainment chief and that the company had been conducting a formal investigation into his behavior for three weeks leading up to his resignation. Sources said the alleged incidents involved several women, including some executives and on-air talent. The inquiry expanded to include email. A source said an incident at a company retreat, witnessed by more than one staffer, was also part of the inquiry.

New Kindle sells for $139: This one will connect to the Internet using Wi-Fi instead of a cellphone network (as the other Kindles do). Amazon also has a new version of the Kindle 2, which will sell for $189. Both new Kindles are smaller and lighter. (NYT)

Still liking iPhone 4: WSJ tech guru Walt Mossberg has done more testing on Apple's much-maligned smart phone and says the reception isn't all that bad.

Just as with its predecessors, I have experienced some terrible calls, which dropped multiple times, especially while in my car, when any cellphone must hand off the call among different cell towers and travel occasionally through weak or overloaded coverage areas. But I have had fewer of these worst-case experiences than with the 3GS, and marginally fewer occasions when the call dropped even once. This experience may not be acceptable to some users, but it is, overall, an improvement.

New Toyota recall: This time, it's a steering problem on 373,000 of the carmaker's Avalon sedans made from 2000 to 2004. Also being recalled for a steering defect are 39,000 2003-7 Lexus LX 470 sport utility vehicles. (NYT)

Chase opens at Albertson's: Almost two-dozen stores will be getting full-service branches between now and the end of the year. (press release)