Stocks open lower: Wall Street is wavering a bit after last week's big gains. Dow is down about 20 points.
Earnings season looks good: U.S. companies are expected to report solid results for the just-completed second quarter, despite the struggling recovery. From the WSJ:
Combined earnings of companies in the Standard & Poor's 500-stock index are projected to rise 13.6% from a year ago for the second quarter, according to an analysis of Wall Street forecasts by Brown Brothers Harriman. "Corporate profits have been much stronger than the economy in general," says Charles H. Blood Jr., a market strategist at the New York-based financial services firm.
More doubts about Republicans: NYT columnist David Brooks wonders whether the GOP leadership is capable of compromise, especially since the Democrats appear willing to slash the deficit.
The Republican Party may no longer be a normal party. Over the past few years, it has been infected by a faction that is more of a psychological protest than a practical, governing alternative. The members of this movement do not accept the logic of compromise, no matter how sweet the terms. If you ask them to raise taxes by an inch in order to cut government by a foot, they will say no. If you ask them to raise taxes by an inch to cut government by a yard, they will still say no.
Parsons sells headquarters: Morgan Stanley Real Estate is purchasing the engineering and construction company's 22.7-acre Pasadena campus for $320 million. Parsons will become a tenant in its 12-story building as part of the deal. (LAT)
Council signs off on police labor deal: A package of concessions on health costs and pensions is supposed to save the city $300 million over the next three years, though Councilman Bernard Parks, who voted against the contract, questions the savings. (Daily News)
Big jump in long-term unemployed: The number of Californians out of work for a year or more has soared to more than 730,000, compared with 92,000 when the recession began in December 2007. (OC Register)
Two American Apparel directors quit: Mark Samson and Mark Thornton were pressured into resigning by CEO Dov Charney, the NY Post reports.
Sources said Samson, a corporate restructuring expert, and Thornton, a risk-management expert, had argued this spring that a Chapter 11 filing could be the best way to preserve the company's assets as it faced a liquidity crisis. "They were concerned about appearing astute, strict, protectors of the creditors," according to one source close to the situation. "For them, Chapter 11 was the safe route -- nobody could say they weren't judicious."