Monday morning headlines

Stocks edging lower: Holiday-shortened week starts off slowly, with the Dow down about 40 points.

Ernst & Young faces fraud: Civil charges are expected to be filed by NY prosecutors, alleging that the Big Four accounting firm played a role in the collapse of Lehman Brothers. From the WSJ:

The transactions in question, known as "window dressing," involve repurchase agreements, or repos, a form of short-term borrowing that allows banks to take bigger trading risks. Some banks have systematically lowered their repo debt at the ends of fiscal quarters, making it appear they were less risk-burdened than they actually were most of the time.

Silicon Valley showing strength: Tech companies are hiring and the jobless rate is declining. This could have a spillover effect in other parts of the state. From the WSJ:

Driving the area's recovery is continuing worldwide demand for tech products, much of which still originates in Silicon Valley. "There's an absolutely insatiable demand" for tech products spurred by trends such as smartphones, said Brocade's Mr. Klayko, adding that he doesn't expect demand to taper off "in our lifetimes."

Ranking number of tech jobs: The NY metropolitan area is tops, with 317,000, followed by the Washington, D.C. area and then Silicon Valley. L.A. is sixth, with 170,000 and OC is 14th. (OC Register)

DirecTV to target ads: Called "addressable ads," the idea is to tailor commercials to specific characteristics of a household (dog owners would see ads for dog food, not kitty litter). The El Segundo-based satellite company will roll out the service next year. (WSJ)

Web ads exceed print ads: This will mark the first year that digital advertising revenues are higher than those for newspaper ads, according to research firm eMarketer. From Bloomberg:

"It's something we've seen coming for a long time, but this is a tipping point," Geoff Ramsey, chief executive officer at eMarketer, said in the statement. "The bad economy has actually accelerated the shift to digital advertising." Online ads are typically seen as more reliable, he said, because their effectiveness can be measured, whereas print ads "are often difficult to tie to a measurable financial result."

NYT announces pay wall: Actually, it's called a "metered" model, and will allow users will get free access to a set number of articles per month. After that, they'll be charged. Print subscribers will continue to have free access. (The Wrap)

NFL tops all programming: Of the 20 highest-rated telecasts this season, 18 have been pro football. From the NYT:

None of that means the networks make money from the games. Rights fees are huge (the league takes in about $4 billion a year in television money) and losses for the networks are routine. But no network is complaining. The games provide audience circulation like nothing else the networks can buy, and they use the once-a-week mass assemblage to promote their other programs.

Council pushes local hiring: City residents must account for roughly two-thirds of total hours at city-funded construction sites. Labor unions strongly backed the requirement.