Tuesday morning headlines

Another down opening: Market seems to lack traction, and with volume relatively low these days (it's the middle of summer), any blip could result in an oversized reaction. Dow is down about 40 points.

Americans cut spending: First time that's happened in almost two years and a further indication of how skittish people feel about the economy. Also, incomes grew by their smallest amount in nine months. From AP:

Many Americans are cutting back on purchases of cars, furniture, appliances and electronics. Consumer spending is closely watched because it accounts for 70 percent of economic activity. Employers have responded by reducing hiring. The economy added just 18,000 net jobs in June, the fewest in nine months. The unemployment rate rose to 9.2 percent, the highest level this year.

Senate takes up debt bill: Passage is all but assured, and after that Congress is in recess until next month. (AP)

Deal means trouble for California: Central Valley farm subsidies, Socal defense contractors, high-speed rail - look for funding cuts in all these areas. And California could forget about getting federal help for the state's overall budget woes. From the Sacramento Bee:

California, overall, will take a special whack in the budget-cutting to come, if for no other reason than it currently soaks up so many federal dollars. The federal government spent $345 billion in California in 2009, and that will shrink.

California not spending stimulus money fast enough: The federal government could demand a refund if more than $250 million isn't spent by next spring. Sen. Alex Padilla has been holding hearings on why it's taken so long. (Sacramento Bee)

Oil falls to $94: Signs of a slowing economy are probably behind the drop. (AP) Meanwhile, an average gallon of regular in the L.A. area fell by a couple of pennies, according to the government's latest survey, to $3.845.

No action on FAA impasse: And with Congress set to adjourn until next month, it looks like 4,000 employees of the agency will remain furloughed through August. In addition, the federal government will be losing at least $1.2 billion in airline passenger tax revenue. (CNN)

Fox is ticked off at McCourt: The Dodgers owner has hired Blackstone Group to market the team's media rights, which would seem at odds with Fox Sports' exclusive negotiation rights. From the WSJ:

The Dodgers' move to hire Blackstone to market its broadcast rights is key to the team's plan to emerge from bankruptcy with Mr. McCourt's ownership stake fully intact. The tactic, however, threatens to anger Fox, which until the bankruptcy had been a supporter and lender to the team. Fox Sports has already advanced to Mr. McCourt's team all of the fees for the Dodgers' 2011 television rights. Furthermore, the network had consented to a 17-year, $2.7 billion extension to the current broadcast deal that would have allowed the team to avoid a bankruptcy filing.

Consumer Reports pan Honda Civic: The magazine was critical of the sedan's ride quality, driving dynamics, and interior. But the Civic did well in fuel economy. From CNNMoney:

The 2012 Civic's score of 61 places it near the bottom of the compact car category, according to the magazine. The only car to do worse was the Volkswagen Jetta, which also scored much lower after it was recently redesigned. The compact car category has become highly competitive with many recently improved models.

Relativity Media's big sale: CEO Ryan Kavanaugh is near a deal to sell a minority stake of the movie company to an investment group led by JPMorgan for as much as $800 million, the NY Post reports.