Wednesday morning headlines

Stocks falling fast: Terrible economic numbers this morning on jobs and manufacturing - and the market is apparently watching. Dow is down about 100 points.

Weak employment report: Only 38,000 private-sector payroll jobs were added in May, according to ADP, way lower than analysts had expected and the lowest level in eight months. The government's employment report comes out Friday. From Bloomberg:

"It is a warning shot across the bow that job growth is also weakening along with the other high frequency numbers," Eric Green, chief market economist at TD Securities Inc. in New York, said in an e-mailed note to clients. "The weakness reflects a general slowdown and turn in sentiment that set in with the sharp rise in energy prices, disruptions from Japan, and to a lesser extent risk aversion stemming from the Greek fiasco."

Manufacturing slows in May: Another not-so-great sign: The closely watched ISM index fell to 53.5 from 60.4. Analysts had been expecting 57.

Bottoming out on housing?: At least that's what some economists are telling the NYT, despite yesterday's slumping Case-Shiller report.

By far the bulk of the downturn of housing prices is beyond us," said Paul Dales of Capital Economics. He expects the market to slip 5 percent further, slightly more than he was expecting a few months ago. "There are some amazingly favorable signs. Housing is the most undervalued it's been in 35 years," Mr. Dales said. "At some point, it's going to do very well."

Wine business on the rebound: U.S. consumption in 2010 was actually larger than that of France (though the French still drink far more wine per capita). California wine producers, who make 90 percent of wine bottled domestically, saw retail sales grow 1 percent from the previous year, to $18.5 billion. From the LAT:

"People are feeling a bit more confident about the economy and are going back to what they know," said Tom Klein, the Wine Institute's chairman and Rodney Strong Vineyards' vintner. "The wine industry, is it easy right now? No. But I think the industry has turned a bit of the corner. People are being smart about what they buy, but they are coming back."

OpenX raises $20 million: The new round of financing for the Pasadena-based online advertising firm (Groupon is a customer) was led by SAP Ventures. Since its founding in 2007, OpenX has raised $50 million over four investment rounds. (Venture Beat)

Assembly votes to extend film tax credit program: The legislation would provide $500 million in funding over a five-year period. The state Senate will consider the measure later this summer. (THR)

Airlines cleaning up on fees: The world's largest carriers picked up $21.5 billion last year, about double the amount collected in 2008, according to a study. For some airlines, fees and frequent-flier revenue now represent up to 30 percent of all revenue. (LAT)

Designer found dead: Jonas Bevacqua was creative director of Irvine-based clothing company LRG, which was well-regarded for its urban-style fashions. Cause of death has not been determined. Bevacqua was 34. (OC Register)

L.A. bankruptcies edge higher: But April filings were up only 4.9 percent from a year earlier, which is actually pretty good compared to the double-digit increases in recent months. OC filings were down for the first time in 54 months. (OC Register)