Wednesday morning headlines

Stocks stumble: More lukewarm economic news, but nothing to move the market in a big way. Dow is down a few points in early trading.

Averting a depression: Two leading economists say that without the Wall Street bailout, bank stress tests, fiscal stimulus, and Federal Reserve emergency actions, there would be 8.5 million fewer jobs, on top of the more than 8 million already lost. (NYT)

Nowhere close on budget: A year ago today the governor signed a state budget package. And now? From the Sacramento Bee:

Four weeks into the new fiscal year, lawmakers and Gov. Arnold Schwarzenegger remain stuck in the finger-pointing phase of budget politics as the state faces a projected $19.1 billion deficit. Democrats blame Republicans for refusing new taxes and axing safety-net programs. Republicans blame Democrats for rejecting deep welfare cuts and seeking taxes and borrowing. Both sides are so far apart they have mentioned the possibility of holding out until the next governor takes office in January, though that remains unlikely.

Grocery CEO not encouraged: The chief executive of Albertson's parent Supervalu says in an earnings call that "we continue to see a very, very challenged economic environment," noting that coupon and food-stamp usage are still rising. (WSJ)

Rentals snapped up: The number of occupied apartments rose by 215,000 in the first half of the year, almost double the number added in all of 2009. But occupancy rate figures tend to vary by location and I haven't seen the breakout for L.A. (Bloomberg)

ABC chief steps down:Stephen McPherson is expected to be replaced as head of entertainment by ABC Family chief Paul Lee. From THR:

The move comes after months of speculation about McPherson's future and whispers of clashes with Disney/ABC TV Group president Anne Sweeney. The drama also throws ABC into an awkward position going into the Television Critics Assn.'s semi-annual press tour, which gets under way Wednesday morning. As of late Tuesday, rumors of a sensitive personnel matter involving McPherson were making the rounds, the details and veracity of which were still unclear. ABC declined to comment.

Why Disney is buying Playdom: The $763-million deal is all about the Mouse House becoming a major player in the booming social game business. From the NYT:

As social games becomes a more crowded and difficult field -- several hundred new games are introduced on Facebook weekly and most go nowhere -- brands that can be used as the basis for titles are becoming more important. "When deciding how to place a bet we thought we should do it at a significant level and not just take a little shot," Disney's chief executive, Robert A. Iger, said in an interview. "Too often traditional media companies only put a toe or two in, and they deprive themselves at the opportunity for real growth."

Comcast/NBC-U deal almost done: The cable giant says it still expects to finalize its purchase of the TV giant by the end of the year. (All Things Digital)

Energy loans delayed: More than 20 solar and wind projects are being held up by Department of Energy red tape. From the LAT:

Complaints about the Energy Department's handling of applications have been mounting. Although it has $77 billion available in loan guarantee funds, the department issued only one guarantee for $535 million and nine conditional guarantees as of April 10, the General Accountability Office said in a report early this month.

Farmers cutting rates: California's largest auto insurer is reducing premiums by an average of 14.5 percent. The move puts the company in compliance with a state law that changed the way auto insurers calculate their rates. (LAT)

RealD shareholders selling out: Insiders and investors at the L.A.-based developer of 3D systems raised more money in the company's recent initial public offering than the company did. (WSJ)