Tuesday morning headlines

Stocks take another hit: Wholesale prices for July were much higher than expected - even with a drop in gas prices - so Wall Street is now worried about inflation. The Dow is down more than 100 points in early trading. Meantime, oil slipped under $113 a barrel on word that the storm in Florida won't be impacting Gulf production.

Quieter Labor Day: Only 16 million passengers are expected to board planes during the end-of-summer holiday period, down 5.7 percent from last year. Among the reasons cited: Higher air fares, fewer flights and a slumping economy. Labor Day fares out of LAX are up an average of 19 percent from a year ago. (LAT)

Port deal gets reviewed: Members of the International Longshore and Warehouse Union and the Pacific Maritime Association are looking over the proposed labor contract worked out a few weeks back. They're still not releasing details, but the tentative agreement calls for pay raises and some adjustments to the health plan (unionized dockworkers have full medical coverage and a $1 co-pay for prescriptions). The contract still needs approval from the rank and file. (Daily Breeze)

Does "Watchmen" belong to Fox?: A federal judge in L.A. denied a request by Warner Brothers to dismiss infringement claims by 20th Century Fox concerning the superheroes. Fox is seeking an injunction to block release of “Watchmen,” which is due out next March. From the NYT:

Written by Alan Moore and illustrated by David Gibbons, “Watchmen” tells the story of superheroes who have fallen into a netherworld of disgrace and personal torment. Long considered too difficult for a Hollywood film, it became a hot property after Zack Snyder, the director of Warner’s hit “300,” took it as his next project, with a budget that published reports have put at about $120 million. According to Fox’s lawsuit, however, Warner, in acquiring rights through the producer Lawrence Gordon, failed to acquire certain rights already owned by Fox, including the right to distribute any picture made by Mr. Gordon’s company.

GM pulls out of Oscars: The Academy Awards don't fit into the automaker's advertising plans for 2009. That leaves ABC without one of its biggest sponsors on Oscar night (it bought $13.5 million worth of ad time last February). GM has also bowed out of the Emmys. Part of this reflects the company's current struggles, but there’s also a strategic consideration: GM is shifting ad dollars to digital marketing. From the WSJ:

While GM's Oscar decision is a blow to ABC, the network does have plenty of time to find new advertisers. Still, the task won't be easy; in the current economy, some marketers are trimming spending. ABC brings in about $80 million in ad dollars annually from the Oscar broadcast, according to Nielsen Monitor-Plus. Other past advertisers on the show have included J.C. Penney Co., American Express Co., Coca-Cola Co. and McDonald's Corp.

Big gains at LAT.com: Monthly unique traffic for July grew 66 percent, according to the latest Nielsen numbers, much of it coming from the recent earthquake. LATimes.com went down for short bit because too many people tried to access the site at once. E&P has a rundown on the biggest newspaper sites (add 000 to end of the number for total in millions).

NYTimes.com -- 19,513 -- 38%

USATODAY.com -- 10,404 -- (-2%)

washingtonpost.com -- 8,935 -- (-2%)

LA Times -- 8,750 -- 66%

Wall Street Journal Online -- 8,716 -- 94%

Feeling the heat: Barbeques Galore has filed for Chapter 11 protection, another indirect victim of the housing downturn (when folks don’t buy houses, they won’t buy barbeques). The Carlsbad-based retailer said it planned to sell the company or form "a consensual liquidating plan" with its bank lenders. (Bloomberg)

Lacter on radio: This week's business chat with KPCC's Steve Julian covers the latest jobless numbers and why the rich aren't spending. Also available on kpcc.org and on podcast.