Friday morning headlines

Stocks edge lower: Somewhat disappointing fourth-quarter growth numbers won't help. Dow is down about 70 points.

Economy moving modestly: The gross domestic product grew at an annual rate of 2.8 percent in the fourth quarter. That's decent but not spectacular growth, and the outlook for the fourth quarter is slower still. From the NYT:

"At this rate, we'll never reduce unemployment," said Justin Wolfers, an economist at the University of Pennsylvania. "The recovery has been postponed, again." Still, the 2.8 percent rate is likely to be seen by many as something of a relief, given that just last summer many economists were predicting the country would soon dip back into recession. Whether this modestly brisker pace of growth will continue is unclear, however.

Why the sluggish growth?: To make up for all the recession-related losses, the economy must shift into a much higher gear and it's not happening. From the WSJ:

Economists say the nature of the recession helps explain the slow recovery. Aftershocks from the financial crisis have left banks reluctant to lend, making it hard for companies, and especially start-ups, to get access to capital. The housing market, which has historically helped lead the economy out of recession, remains deeply depressed.

Consumer sentiment edges higher: January's final reading by Reuters/University of Michigan is up from December. Still quite low, however. (Calculated Risk)

Gas prices moving on up: An average gallon in the L.A. area is $3.749, according to the Auto Club, a couple of pennies higher than last week.

L.A.'s shortfall shrinks a bit: Thanks to stronger investment returns last year, the city's two employee pension funds will be able to cover more of their retirement obligations, which means that L.A. won't be on the hook for as much. From the LAT:

The strong performance of the two funds, combined with increased retirement contributions from the City Hall workforce and other factors, will reduce this year's scheduled payment to the two retirement systems from $948 million to $858 million, City Administrative Officer Miguel Santana said in a report released Thursday. That, in turn, will reduce the size of next year's budget shortfall to between $150 million and $200 million, he said. Only weeks ago, officials feared the shortfall would reach $250 million.

Decision on redistricting maps: The California Supreme Court is expected to release its ruling on remapping of state Senate Districts later this morning.

Ari Emanuel's parking squabble resolved: William Morris Endeavor walked out on its lease over an underground parking garage that the talent agency would have had to share with a rival firm. WME agreed to pay the building owner about $30 million to settle the dispute. (WSJ, THR)

Glendale hotel makes way for Nordstrom: Workers have begun taking apart the three-story Golden Key Hotel, whose owner tussled on selling the property to Rick Caruso. The new Nordstrom store, to become part of the Americana at Brand center, is set to open in the fall of 2013. (LAT)