Monday morning headlines

Stocks heading higher: Still lots of worries about oil, but the Dow is up about 45 points. Energy stocks are helping.

Investors still skeptical: Two years after the market bottomed - and after the Dow regained most of what it lost - stocks remain a tough sell. From the WSJ:

They worry that the economy isn't strong enough to stand on its own once the Federal Reserve ends its latest round of support in June, and they fear that high oil prices and inflation from other commodities may quash the nascent recovery and weigh on the market. And after such a blockbuster rally, a correction must be around the corner, the reasoning goes.

Oil keeps climbing: Prices topped $106 a barrel this morning before pulling back a bit. Gas prices continue to go up. (DJ)

Big tech deal: Irvine-based Western Digital is buying Hitachi Global Storage Technologies for $4.3 billion. The combined company will maintain the Western Digital name and be headquartered in Irvine. (DealBook)

Pension board approves increase: Mayor Antonio Villaraigosa had wanted a freeze in the size of the health subsidy given to retired police officers and firefighters, but the board voted 5 to 4 to go ahead with the increase. (LAT)

Public pensions doing a bit better: The funding ratio for state systems was 69 percent in fiscal year 2010, up from 65 percent the year before, according to Wilshire Associates. But that's way under the 95 percent average in 2007. From the WSJ:

Over the next decade, Wilshire projects public pension plans will have a median annual return on their assets of 6.5%. The pension plans included in the study have projected a median actuarial return of 8% over several decades, Wilshire says.

California has 3rd-highest start-up rate: For every 100,000 residents, 470 were involved in starting businesses last year. Only Nevada and Georgia had higher rates, reports the Kauffman Foundation. (OC Register)

Tribune bankruptcy reaches crucial stage: Two competing reorganization plans will be heard by a bankruptcy judge starting today. It'll be several months before one of the plans is chosen. (Chicago Tribune)

Barbie store in Shanghai is closed: Mattel is closing the high-profile location for reasons not entirely clear. Store had opened two years ago to great fanfare. From the LAT:

The closure marks a surprising reversal for a store that seemed to embody the spirit of a city on an unstoppable material rise. Tucked in a downtown district filled with foreign retailers and luxury brands, the six-story, 36,000-square-foot Barbie store was drenched in pink neon light and featured a cosmetics department, a spa and a bar designed by one of Shanghai's premier restaurateurs. A $10,000 Vera Wang wedding dress was on display when the store opened.