Thursday morning headlines

Stocks tumbling down: So much for Warren Buffett's big investment in Bank of America. The market has turned negative - Dow is down 125 points.

Buffett invests $5 billion in B of A: Through Berkshire Hathaway, he's agreed to buy 50,000 preferred shares that will pay a 6 percent annual dividend. Bank of America has the option to buy back the shares at any time for a 5 percent premium. From DealBook:

Mr. Buffett has played the role of savior before. In the depths of the financial crisis, Berkshire Hathaway gave Goldman Sachs a $5 billion lifeline, which came with a hefty 10 percent dividend. The investment bank paid back the money earlier this year after getting the greenlight from regulators. When shares of General Electric got hit, Mr. Buffett stepped in with a $3 billion investment. The deal also came with a 10 percent annual payout.

Apple shares down: But not wildly so - just 1.7 percent at last check. Many investors had already factored in a possible Jobs resignation.

Rise in jobless claims: The Verizon labor dispute might have played a role. Weekly filings rose 5,000 to a seasonally adjusted 417,000 - still stubbornly high, but nowhere near levels that would signal a recession. (Reuters)

Bernanke unlikely to make big move: Betting is that the Federal Reserve Chairman will hold off on any new stimulus plans when he speaks tomorrow in Jackson Hole, Wyo. From Bloomberg:

Policy makers, who said Aug. 9 they'll use additional tools "as appropriate," probably don't expect a recession or rapid disinflation, making a signal of bond buying premature, said Roberto Perli, managing director at International Strategy & Investment Group in Washington. Instead, Bernanke will probably detail options for further stimulus and clarify how much the Fed's reduction in its outlook this month stems from long-term obstacles to growth, said Keith Hembre, a former Fed researcher.

Brown to propose tax package: The governor wants to tighten the formula for corporate taxes in exchange for giving manufacturers a sales tax exemption and offering enhanced job tax credits. From the Sacramento Bee:

The linchpin is a requirement that multistate companies calculate their tax liability only on the proportion of sales they have in California relative to elsewhere in the nation, a method called "single sales factor." Under a 2009 budget deal, firms can pick the more generous of two tax formulas starting this tax year, making California one of only two states to give companies that choice on an annual basis.

TCW's long-standing plan to fire Gundlach: Attorneys for the bond manager maintain that TCW executives were planning to oust him well before the firm formally decided to let him go. From the LAT:

The timing could be critical in the case as jurors weigh whether TCW fired Gundlach in reaction to alleged threats he had made to abandon the firm, or whether TCW had been actively seeking to push him out. TCW, which manages about $120 billion in assets, fired Gundlach in December 2009 in a shakeup that rocked the mutual fund world. One month later the company sued Gundlach in L.A. County Superior Court. TCW alleges that he and key aides conspired against the firm and stole massive amounts of TCW proprietary information to set up a rival firm, DoubleLine Capital, almost overnight.

Payless, Stride Rite parent to close stores: Collective Brands is also conducting "a review of strategic and financial alternatives," which is what companies typically say when they put themselves up for sale. More than 300 stores will be shuttered by the end of the year. (AP)

Restaurant ordered to pay wages: Federal officials say that L.A.'s Daikokuya ramen restaurant chain owes 66 of its workers $145,000 in overtime pay. A study released this year said that eight out of 10 local restaurant workers earn less than a living wage. (LAT)

Big lease renewal for NBC Universal: The 10-year deal for 370,000 square feet at 10 Universal City Plaza is valued at about $170 million - what's believed to be the largest office lease in L.A. in three years. (THR).

LAX traffic is up in July: More than 6 million travelers passed through the airport last month, a 6.6 percent increase from a year earlier. Domestic and international were up the same percentage amount. (Daily Breeze)