Tuesday morning headlines

Stocks wavering: So-so earnings and continued worries out of Europe point to a mixed session. Dow is hovering near the line.

B of A reports profit: The sale of assets offset continued losses in mortgage portfolio. Earnings topped analyst expectations. (DealBook)

Banks making more loans: The numbers remain modest and heavily weighted toward the strongest corporate and consumer borrowers. But banks are lending. From the NYT:

There are myriad explanations behind the uptick in loan growth, including more customers taking advantage of ultra-low interest rates and borrowers in need of cash drawing on their credit lines. Others believe the downbeat headlines in recent weeks have been overblown. If the confidence clouds hanging over Europe and the United States were removed, the lending figures would be even stronger, analysts and bankers say.

Mattel goes after Thomas the Tank: The El Segundo-based toymaker is nearing a deal to acquire Hit Entertainment, the British owner of the Thomas the Tank Engine brand. WSJ reports that the deal could be valued at $789 million.

NBA talks resume: This time with a federal mediator who will try to make some progress in negotiations that have gone nowhere. Today will be the first bargaining session in more than a week. (NY Daily News)

Lead at Disneyland: Glass windows, brass rail chains, door knobs and drinking water fountains are among the items that have high levels of lead, according to an environmental group. From the LAT:

The Mateel Environmental Justice Foundation filed a lawsuit in Orange County Superior Court in April against Walt Disney Parks and Resorts U.S. Inc., alleging excessive levels of lead in such commonly touched objects as the Sword in Stone attraction, where Disneyland photographers encourage children to pose while pulling on the sword handle. Other objects include brass door knobs at Minnie's House and stained-glass windows in a door at the entrance to a beauty salon in Cinderella's Castle. "We are asking the court to force Disney to take steps that should have been taken when we first told them that children at Disneyland are in danger of illegal lead exposures," Mateel President William Verick said in a statement.

Another CA pension fund opposes Murdoch: The California State Teachers' Retirement System is withholding its votes for the entire slate of nominees to the News Corp. board, including CEO Rupert Murdoch. Last week, Calpers said it would withhold its votes for Murdoch and his two sons. The News Corp. shareholders meeting is Friday in L.A. (LAT)

Trade bills could help port traffic: The legislation lowers tariffs on U.S. autos, beef, citrus, tree nuts, cotton and wine to South Korea, Panama and Colombia. That's good news for California farmers and manufacturers. From the Press-Telegram:

The U.S. Chamber of Commerce believes the deal could double California's trade with Korea by about 2020, primarily by opening a growing market for the state's film, high-tech, auto, aerospace and agricultural industries. In addition to cuts on existing auto tariffs, the plan eliminates a 15 percent tariff on California wine and an 8 percent tariff on computer parts, two of the state's top exports.

Airlines win slots in Long Beach: JetBlue Airways, Delta Airlines, and US Airways received the positions being vacated by Allegiant Airlines. Destinations will be announced shortly. (Press-Telegram)