Tuesday morning headlines

Stocks stay up: Investors are still in a buying mood after Monday's strong session. Dow is up about 50 points.

Facebook keeps falling: Stock is down 3.3 percent this morning, to $32.91 a share. Meanwhile, Reuters is reporting that a Morgan Stanley analyst reduced his revenue forecast in the days leading up to the offering - and Morgan Stanley was lead underwriter on the deal.

The sudden caution very close to the huge initial public offering, and while an investor roadshow was underway, was a big shock to some, said two investors who were advised of the revised forecast. They say it may have contributed to the weak performance of Facebook shares, which sank on Monday - their second day of trading - to end 10 percent below the IPO price. The $38 per share IPO price valued Facebook at $104 billion.

Europe facing severe recession?: That's the grim forecast from the Organization for Economic Cooperation and Development. In its twice-yearly outlook, the OECD is calling for a growth strategy that also trims deficits. (AP)

SpaceX blasts off: As Kevin posted earlier this morning, the Hawthorne company's Falcon 9 lifted off from Cape Canaveral Air Force Station. From the NYT:

The payload is only about 1,000 pounds of cargo, and nothing of great value. The importance is instead technical and symbolic. If the cargo capsule makes it all the way to the space station, it would be the first commercial, rather than government-operated, spacecraft to dock at the space station. A successful mission would reinforce NASA's efforts to turn over basic transportation to low-Earth orbit to private companies.

Pom Wonderful ads ruled deceptive: A federal administrative judge said that the L.A.-based pomegranate juice maker implied its products could treat or prevent serious diseases. From the LAT:

Judge D. Michael Chappell upheld much of a 2010 Federal Trade Commission complaint against the Los Angeles company owned by Lynda and Stewart Resnick. The judge said in his decision issued Monday that Pom used "insufficient" evidence to back its claims that Pom products "treat, prevent or reduce the risk of heart disease, prostate cancer or erectile dysfunction." The judge did not find all Pom ads in the original complaint to be at fault. But one cited as deceptive described Pom juice as an "antioxidant superpower," and went on to say that antioxidants guard against agents that "can cause heart disease, premature aging, Alzheimer's disease, even cancer."

China's ticket to Hollywood: Analysts may be questioning the $2.6-billion purchase of AMC by Dalian Wanda Group, but the Chinese company is suddenly a player. From the WSJ:

The acquisition is a reversal of typical Chinese-American entertainment-business deals, in which U.S. studios have sought access to China's explosive growth and a way to skirt the tight limits the country puts on foreign films. "This deal caught us by surprise, because we've never seen this kind of emphatic strategic acquisition by a Chinese media company," said Standard & Poor's stock analyst Tuna Amobi. "It has usually been the reverse, where U.S. companies like Disney or News Corp. go to China."

Car wash workers sue: A class action accuses a family of car wash owners of withholding overtime pay and denying breaks. From the LAT:

The Mexican American Legal Defense and Educational Fund filed the lawsuit in L.A. County Superior Court on behalf of four workers at carwashes owned by Bijan, Edna and Kambiz Damavandi. The class action suit alleges that they forced employees to arrive for work early but only clock in when there were enough cars to wash. According to the lawsuit, the family owns three carwashes: Lincoln Millennium Car Wash, at 2454 Lincoln Blvd. in Venice; Santa Monica Car Wash, at 2510 Pico Blvd. in Santa Monica; and Bumble Bee Car Wash, at 2711 Del Amo Blvd. in Lakewood.

Gucci's small victory over Guess: A federal judge ruled that the Italian luxury goods company can recover just $4.7 million of the $120 million it was seeking from the L.A.-based jeans manufacturer. Gucci had accused Guess of copying its trademarked designs. (NY Post)

Peanut butter prices are soaring: A combination of hot weather and drought has resulted in a 50.6 percent jump in peanut prices during the first three months of the year, according to the Bureau of Labor Statistics. (OC Register).

Long Beach Airport's low prices: Average round-trip air fare was $229 during the fourth quarter of 2011, the second-lowest price of any airport in the nation (Atlantic City is tops). (Press-Telegram)

American Express teaming up with FarmVille: Seriously. You can now earn virtual currency through a Zynga-branded card. (All Things Digital)

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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