Monday morning headlines

Stocks still climbing: The market rally now enters its third week. Dow is up 70 points in early trading.

Economists lower outlook: They're forecasting, on average, growth of only 1.9 percent in the second quarter, according to a WSJ survey, with 2.4 percent projected for the fourth quarter (both revised downward). The economists, on average, put the chance of another recession in the next 12 months at 22 percent.

PG&E must check for leaks: A state regulator orders the utility to focus on high-pressure pipelines in heavily populated areas. From the SF Chronicle:

PG&E responded that it would comply fully. In a statement, the utility said it routinely checked gas pipelines for leaks and had already started surveying the three transmission lines that feed the Peninsula. PG&E also said it had reduced pressure in those three lines by 10 percent "as an added safety measure."

Early reading on August home sales: They were up for the month in L.A. County compared with the previous month and the year-earlier month, according to HomeData. (LABJ)

Mixed bag on small biz bankruptcies: Second-quarter filings were up 9.8 percent in L.A. County, but down 9.2 percent in OC, according to Equifax. Most metro areas saw declines for the April-June period. (OC Register)

Recruiters favor state schools: They say that's where the focus is more on practical skills, according to a WSJ survey. Of the 25 universities that are considered the best prospects for employees, UCLA ranks 17th and USC 24th.

The impact on students is significant. Steve Canale, head of General Electric Co.'s recruiting efforts, said it is critical for prospective students to ask which companies recruit on campus before deciding where to matriculate. GE, for example, focuses on about 40 key schools--many of them state schools--to hire 2,200 summer interns; upwards of 80% of its new-graduate hires come from its internship pool, said Mr. Canale.

THR becomes a weekly: The Hollywood trade will end its daily print edition beginning next month and replace it with a glossy, large-format magazine. As part of the transformation, the Web operation will be redesigned and built around breaking news. From the NYT:

The Reporter wants to transform the way it does business but also change the model that has allowed the Hollywood trade publications to exist for nearly a century. Heavily dependent on advertising from the entertainment industry, publications like Variety and The Reporter have long provided favorable coverage of the films and studios that pay their bills. [Richard Beckman, chief executive of The Reporter's parent company, e5 Global Media], is gunning for a larger slice of the advertising market: beauty, fashion, consumer electronics and liquor, for starters.

Council board meets on LAX concessions: Could be a lively session today as members try to sort out an airport contract worth $600 million. (Daily News)

Valley biz group forms PAC: The Valley Industry & Commerce Association's political action committee aims to help elect pro-business candidates to local and state offices. (LABJ)