Thursday morning headlines

Stocks are wavering: Mish-mash of decent economic news and then there's tomorrow's unemployment report. Dow is down a few points in early trading.

Good month for retailers: Back to school sales picked up a little later than usual, leading to stronger-than-expected business in September. J.C. Penney, Macy's, and Nordstrom all did well. (Reuters)

Union, Schwarzenegger announce pension pact: Under the deal, members of the Service Employees International Union Local 1000 will pay more into their retirement plans. Also, pension formulas for new hires will be rolled back to pre-1999 levels. (Sacramento Bee)

Budget vote today?: At least that's the plan. Both chambers are scheduled to begin debate around midday.

Record-low mortgage rates: The average 30-year fixed rate is down to 4.27 percent, the lowest on records dating back to 1971. Now you just have to get approved.(AP)

SEC pushes Mozilo case: Government lawyers want to introduce new evidence at the upcoming trial of the former Countrywide CEO. The idea is to show that Mozilo and two other defendants knew that wrongdoing was taking place at the Calabasas-based mortgage lender. From the LAT:

An expert witness for the government calculates that Mozilo pocketed nearly $142 million in unwarranted profits by selling Countrywide stock at prices propped up by his alleged failure to disclose the enormous risks at the company.

Court shuts down Bev Hills firm: The FTC is accusing American Tax Relief of bilking 20,000 customers out of $100 million by falsely claiming that it could settle delinquent tax bills for less than they owed. From the LAT:

The FTC sued husband-and-wife owners Alexander Seung Hahn and Joo Hyun Park, who allegedly ran the operation since at least 1999, charging upfront fees of up to $25,000. The couple could not be reached for comment, and calls to the company's business office went unanswered. A Chicago judge last week issued a temporary restraining order against the company that froze the owners' assets and prevents it from accepting customers. A receiver was appointed to manage the company.

Poverty moving to the suburbs: Parts of the San Fernando, Santa Clarita and Antelope valleys are bearing the brunt of the increase, according to the Brookings Institution. From the Daily News:

"The (social service) providers in the San Fernando Valley that we spoke to all reported significant increases in people seeking help and many of them said this is a trend that has been going on for some time," said Scott W. Allard, an associate professor at the University of Chicago and co-author of the report titled "Strained Suburbs."

Tribune bankruptcy talks break down: At least three creditor groups are ready to file separate reorganization plans, suggesting that the case is likely to get even messier. "It's kind of a free-for-all right now," one source told the Chicago Tribune.

LAX-Madrid: Iberia Airlines will begin four weekly nonstop flights to Madrid-Barajas Airport, beginning next April. The airline last served LAX from 1984 to 1997. (Daily Breeze)

Food fight at John Wayne: Airport officials are reviewing bids as part of an expansion that includes adding a third terminal. From the OC Register:

The local chains, along with a new bar concept themed after the Anaheim Ducks, are part of a suite of new food offerings being proposed by airport food service provider, HMS Host International. The company has been at John Wayne Airport since 1992 and is competing against New York-based food service provider Delaware North Companies, a bidder in the complicated LAX concessions battle.