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Stocks open lower: Some not-so-hot economic news may be contributing. Dow is down about 50 points.
Soft retail sales: July was another lackluster month for the chain stores - Gap, Limited Brands, and Macy's did better-than-expected, and Target, J.C. Penney, and Aeropostale were disappointments. From AP:
"People were out there, but retailers were much more promotional," said Ken Perkins, president of research firm RetailMetrics. "This doesn't bode well for back-to-school. It's going to be late, and stores are going to have to be very promotional all the way through." He added that consumers, particularly in the low- to middle-income brackets, are in a "buy now, wear now" mode because they don't have a lot of discretionary income.
Jump in new jobless claims: Not a number I normally pay much attention to (it bounces around a lot), but this week it reached a four-month high. Not great news. (press release)
Hopeful job news?: Unemployment in California could begin to ease by the fourth quarter, says a new report by Chapman University. The school's California Employment Indicator Index jumped to 99.8 for the third quarter from 68.8 a year earlier. Anything above 100 suggests job growth. (OC Register)
New hotel fee is sought: Proceeds would be used to promote the city of L.A. as a worldwide tourist destination. From the LAT:
The city already levies a 14% transient occupancy tax, or bed tax, on hotel guests. The new proposed fee of an additional 1.5% would be levied only on guests at the 192 hotels in Los Angeles with more than 50 guest rooms. It would generate an estimated $10 million to $11 million annually. The charge must be approved by the Los Angeles City Council and the hotel owners. The proposal is scheduled for a vote of a City Council committee later this month.
OC boiler-room charges: The SEC accuses six people with conducting a fraudulent investment scheme. Complaint says investors were told the money would go to fund an environmentally friendly energy business. (LAT)
Murdoch holding onto MySpace: The News Corp. CEO says in an earnings call that "We will see it out for some time yet." The Bev Hills-based social networking site is about to lose its lucrative ad deal with Google. (All Things Digital)
Fewer passengers at Ontario: Expect a 7.7 percent drop in traffic between July and the end of the year. All airlines except Delta, Horizon Air, Mesa Airlines and SkyWest Airlines have fewer flights scheduled for the second half of the year. (Press-Enterprise)
Michael Jackson manse up for sale: The 17,000-square-foot Holmby Hills residence is priced at just under $30 million. That's down from $38 million when it was on the market two years ago. (LAT)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.