Monday morning headlines

Stocks move higher: Fresh signs that the rally has some life left. Dow is up about 60 points in early trading.

Citigroup earnings top expectations: And it's no doubt helping Wall Street this morning. Losses from bad loans fell 30 percent. (NYT)

Socal office vacancies shoot up: They were nearing the 20 percent level during the third quarter, compared with 17.5 percent a year earlier. Average asking rent was $2.35 a square foot a month, 13 cents below the level in 2009. (LAT)

More pension proposals: L.A.'s top budget official proposes a March 8 ballot measure that would require newly hired police and firefighters to pay out more and scale down their benefits. A second plan would require newly hired civilian workers to contribute more of their salaries to the pension fund. From the LAT:

[Budget chief] Miguel Santana released a separate report Friday saying that, three months into its budget year, the city already has a shortfall of nearly $64 million. That figure will grow to $117 million if the city cannot reach a deal to lease nine of its parking garages, he said. "Until we adopt major pension reform, we will continue to face deficits year after year," he said. "Next year we face a $320-million deficit, and half of it is from increased pension costs."

CA cities in search of revenues: They've been lowering their standards by welcoming big-box retailers, tattoo parlors and casinos. From the LAT:

Officials in Whittier are considering allowing oil companies to drill on land set aside for a park. Some residents are apoplectic. But Whittier's sales tax revenue has tumbled 25% since its peak in 2007-08, City Controller Rod Hill said. Much of that decline can be attributed to the closure of seven car dealerships, which won't be easy to replace. "We ... need to find other ways short of taxing our residents to provide levels of service," City Manager Steven Helvey said.

Cotton prices reach all-time highs: Clothing prices are headed up, the result of higher demand from China and damaging floods in Pakistan, the world's fourth-largest cotton grower. (FT)

Leno losing grip on late night: He's scoring lower numbers in the 18-49 demographic than Conan O'Brien did during his "Tonight Show" run. O'Brien's new show debuts in three weeks. (The Wrap)

Headline of the morning: From Time.com: "Homer Simpson: A True Catholic?"