Tuesday morning headlines

Market moves higher: Post-holiday trading looks pretty good so far, with the Dow up around 50 points. Apple shares are down 4 percent on news of Steve Jobs' leave of absence.

Stocks heading for a fall?: There's concern about investors shrugging off debt scares in Europe and troubles in the muni market. From the WSJ:

The market is rallying "as if propelled by some mysterious force," says Mark Arbeter, the lead technical analyst for Standard & Poor's, who reckons the market is showing signs of fatigue for the first time in nine months. A stumble could claw back about half of the S&P 500's four-month, 23% rally, he says. Mr. Arbeter and other analysts point to several technical indicators that portend the return of gravity to the market. In many respects, they say, the recent run-up bears many of the same hallmarks as the market did last March and April. That was the last time the Dow had a seven-week rally.

Citi misses earnings estimates: But the banking giant managed to post a full-year profit, and it was able to set aside much less to cover potential losses. (Reuters)

Blockbuster asks for more cash: But bondholders wonder whether it's worth making further investments in the struggling video chain rather than just putting the place up for sale. (WSJ)

Borders sets deadline: The ailing bookstore chain has given publishers until Feb. 1 to decide whether to accept a restructuring - and with it, delayed payments. (NYT)

New jet leasing company files IPO: L.A.-based Air Lease Corp., which was started by billionaire Steven Udvar-Hazy, is looking for as much as $100 million. From Bloomberg:

Udvar-Hazy founded International Lease Finance Corp. in 1973, selling it to insurer American International Group Inc. in 1990. He built that firm into the world's largest plane lessor and the biggest customer for Boeing Co. and Airbus SAS. He resigned in February 2010 and created Air Lease with former ILFC executive John Plueger. Their new venture was the biggest buyer at last year's Farnborough Air Show in England.

Bay Area city looks to exit bankruptcy: Vallejo will submit a plan to a federal judge this week that includes scaled-down employee benefits and pensions and the deferral of debt repayments from its unrestricted general fund until 2013. From the WSJ:

Over the last two years, Vallejo has been striving for better fiscal shape. In 2009, city leaders reached new contract agreements with the police, fire and management unions that reduced pension benefits for new employees, among other cuts. Last year, the city reached similar agreements with the union representing maintenance workers. Health-care benefits for the municipality's 400 retirees and surviving spouses are also scheduled to shrink --to $300 a month, down from the $1,500 a month that some currently receive.

Anschutz supporting downtown stadium: Well, sort of - the Denver billionaire is signed onto the project, according to his lieutenant, Tim Leiweke, but only if he gets commitments from the city and the NFL to approve construction of the stadium and move a pro team to L.A. (LABJ)

Former NBC executive to Univision: Randy Falco has been named COO of the Spanish-language media giant. (The Wrap)

Korean Air adds A380 service: It's the second carrier to fly the super jumbo aircraft out of LAX. A380 flights from L.A. to Seoul begin in October. (LABJ)

L.A. investment bank opens in Dubai: Moelis & Co. is already an established player in the financial capital, having advised Dubai World on its $23.5 billion restructuring. (DealBook)