Tuesday morning headlines

Stocks pulling back: Mixed economic news and a less volatile market. Dow is down about 70 points.

Fitch affirms AAA rating: Moody's also kept the top rating for U.S. debt, which leaves S&P as the ratings outlier. Two out of three is good because it minimizes the possibility of investment firms having to shuffle their bond portfolios. (Reuters)

More care with credit cards: Delinquency rates at the end of June were at their lowest level in 17 years, according to TransUnion, a reflection of greater caution by consumers. (MarketWatch)

Wal-Mart boosts forecast: Second-quarter results were decent, helped along by international sales and cost-control efforts. Up to now, U.S. growth had been struggling. Also posting higher profits and boosting its forecast is Home Depot, which is considered a bellwether for the economy. (Bloomberg)

Wal-Mart no longer cheapest store: Recession-weary consumers are looking for lower prices. From the WSJ:

"The competitive landscape has changed," says Wendy Liebmann, chief executive of consultancy WSL/Strategic Retail, which recently surveyed 1,500 Wal-Mart shoppers and found that 86% no longer thought it had the lowest prices. "And the economic trends that are battering Wal-Mart's core shoppers are not diminishing."

European debt talks: Big meeting today between French President Nicolas Sarkozy and German Chancellor Angela Merkel on ways of digging out of the financial crisis. From AP:

France and Germany, which together account for almost half of the eurozone's economic output, are taking the lead in pushing for reforms. But, speculation that the two leaders would consider proposals for the eurozone to issue jointly guaranteed government debt appear to have been dashed, with officials for both sides indicating that would not be on the agenda. Germany has remained firm in its stance that other EU countries must exert more fiscal discipline.

Gundlach pooh-poohs trade secrets: The former bond trader at L.A.-based TCW testified that he didn't need to steal documents from the money management firm because there was nothing special about them. TCW claims that Gundlach lifted data in order to start his own firm. From the NYT:

On Monday, lawyers for TCW sought to show that Mr. Gundlach, who has referred to himself as "the pope" and "the godfather," was plotting to start his own firm long before he was fired. The seven men and five women on the jury were shown e-mails between Mr. Gundlach and his lieutenant, Philip Barach, in which Mr. Gundlach accused Marc I. Stern, TCW's chief executive, of trying to drive a wedge between the two men. "You deserve better. I deserve better. We deserve better. It's really an easy decision now," Mr. Gundlach wrote.

Imports dip at Port of Long Beach: Another sign that retailers are taking a cautious approach to ordering. Overall container traffic fell 2.5 percent in July compared with the same period a year earlier. The Port of L.A. also saw a drop in imports. (press release)

Settlement over port emissions: Terminals in L.A. and Long Beach will have to implement pollution control programs, according to the deal announced by state Attorney General Kamala Harris. From the Press-Telegram:

Harris had filed a lawsuit in June alleging that the terminals violated Proposition 65 by "exposing thousands of neighboring residents to high levels of diesel exhaust without giving the required warning," according to a statement. The settlement also requires terminal operators to better warn the public of potential diesel exposure, spreading the word via websites, newspaper ads and bus shelter signs.

Convertible sales slip: Normally accounting for up to 2 percent of the market, they're running 1.2 percent to 1.4 percent, according to R.L. Polk & Co. Cars with panoramic roofs are doing better. (LAT)