Friday morning headlines

Wobbly stocks: A mish-mash of earnings and economic data. Dow is up about 25 points at last check.

Decent retail sales: December's increase was a little less than expected, but the annual gain was the biggest in more than a decade. (Reuters)

Inflation grows - sort of: Much of the December increase was driven by higher energy prices. Consumer prices in the L.A. area rose 0.3 percent from November to December, and 1.2 percent for all of 2010. (OC Register)

Consumer sentiment declines: The Reuters/University of Michigan index fell to 72.7 in January from 75.2 in December. This shows a still-shaky recovery. (Calculated Risk)

Earnings jump at JP Morgan: It's a 48 percent increase from a year ago, which significantly tops expectations. Credit a stronger lending environment. (DealBook)

Baca helps out pal: The L.A. County Sheriff launched a criminal probe into allegations by Guess co-founder Georges Marciano that his employees embezzled $1.4 million, despite outside audits showing that no money had been stolen. Marciano later contributed $100,000 to two sheriff's charities. From the LAT:

In an interview, Baca said the probe was justified because of the "magnitude" of Marciano's allegations. The sheriff said that when he ordered the investigation, he had no knowledge of the accounting audits that showed no theft. Donations and political contributions were not discussed, Baca said, and any relationship he had with the fashion magnate did not factor into his decision-making. But the sheriff's critics say the case is an example of special access Baca has provided donors and other influential individuals in law enforcement matters.

Brown wants to end biz tax break: The provision gives firms an incentive to create new jobs out of state, despite claims by business lobbyists that it would spur employment growth. From the LAT:

Beyond the politics of taxation, the argument illustrates one of the recurring problems of lawmaking in California in recent years: bills passed with scant public scrutiny that turn out to have unintended, or at least unadvertised, side effects. The tax break in question was passed in 2009 during a middle-of-the-night budget session with little debate and almost no public notice.

Brown budget plan under fire: Not good - the governor is getting it from both sides of the aisle, with Republicans ticked about the tax extensions and Democrats ticked about the job cuts. (LAT)

Council considers more budget cuts: More furloughs will be considered at today's session, as they figure out how to close the current deficit.

Port of L.A. loses more cruise business: Royal Caribbean and Norwegion Cruise Lines will pull two of their L.A.-based ships to other locations because of sluggish business to Mexico. The two departing ships carried nearly half of the Port of Los Angeles' passengers in 2009. From the LAT:

Nationally, Mexico attracted about 502,000 cruise passengers from North America in the first six months of 2010, 26% less than the same period in 2008, according to the Transportation Department. Just 187 cruise voyages docked in Mexican ports in the first six months of 2010, compared with 290 voyages in the same period in 2008. Cruise line executives acknowledge that drug violence has cut into demand, but they stress that the risk of cruise passengers becoming victims is very small.

Hollywood Press Association sued: A former publicist for the Golden Globes is asking for $2 million in lost salary and additional damages. He also says that the awards show is laced with corruption. From the Wrap:

Among the abuses listed in the former Globes' publicist's suit are several examples of members abusing their positions including: Accepting money, vacations, and gifts from studios in exchange for nominating their films; selling media credentials and red carpet space for profit; and accepting payment from studios and producers for lobbying other members for awards nominations.