Thursday morning headlines

Stocks are fading: More unsettling economic news has investors in a funk. Note that trading has been unusually light in recent weeks, even by summer standards. Dow is down about 130 points.

Intel to buy McAfee: Big tech deal. The semiconductor giant will pay about $7.7 billion for the antivirus software maker. That's a 60 percent premium to McAfee's closing stock price on Wednesday. (Dealbook)

Another jump in jobless claims: They rose by 12,000 last week, to 500,000. The four-week moving average of claims is at its highest level since the week ended Dec. 5, 2009. (Bloomberg)

Small businesses cutting jobs: Businesses with fewer than 50 employees accounted for 62 percent of all private sector job losses in the fourth quarter of 2009, while they created 54 percent of new jobs. From the WSJ:

Some states performed better than others at the end of 2009. Employment turned positive in eight states and the District of Columbia in the fourth quarter after net job losses in the third quarter of 2009. The largest net gains in employment occurred in California and New York.

Perks for Calpers staff: The public pension fund allowed its people to accept luxury travel from financial firms with whom they were doing business, and not disclosing any of it, says a former manager. From the LAT:

[Joncarlo MarkMark] testified that he had taken 10 or 12 private jet trips paid for by firms doing business with CalPERS to locations including Shanghai, Mumbai and New York. Financial firms paid for dozens more such trips for him on commercial airlines, he said, often in first or business class. Mark reported none of the travel on disclosure forms that government officials must file with the state when they accept gifts valued over $50.

Egg recall expanded: It's now up to 380 million, with California reporting 266 illnesses since June, many of which are tied to the salmonella outbreak. From the NYT:

The outbreak, which federal officials said was the largest of its type related to eggs in years, began in May, just weeks before new government safety rules went into effect that were intended to greatly reduce the risk of salmonella in eggs. The company behind the recall, Wright County Egg, of Galt, Iowa, is owned by Jack DeCoster, who has had run-ins with regulators over poor or unsafe working conditions, environmental violations, the harassment of workers and the hiring of illegal immigrants.

Restaurant hostess files complaint against Disney: The Muslim woman claims that she was sent home repeatedly - without pay - for refusing to remove her headscarf at work. From the LAT:

On Wednesday, shortly after filing a complaint with the U.S. Equal Employment Opportunity Commission, Boudlal made her fourth attempt of the week -- the first with videographers, photographers and reporters in tow -- to begin her afternoon shift at the resort-district restaurant, which features a Chip 'n' Dale theme. Boudlal said she was again told to take off her hijab, the headscarf some Muslim women wear. Boudlal refused and walked out of the hotel, flanked by chanting supporters. "I've been sent home," she said. "I thought maybe today is my lucky day because I have my friends, my supporters."

Bren trial opens: The Socal billionaire is being sued by his two grown kids for not forking over child support running into the millions. An attorney for Bren says no money should be forthcoming because Bren has no relationship with his son and daughter, whom he fathered while living with an ex-girlfriend. (AP)

CPK sale talks break down: L.A.-based California Pizza Kitchen had been in exclusive negotiations with private-equity firm American Securities Capital. (NY Post)