Stocks slumping: A weak jobs report from ADP, more worries out of Europe, and the market's relatively high levels could be the culprits. Dow is down 55 points.
Hiring slowdown?: Only 119,000 private sector jobs were added to the rolls last month, according to ADP, which is down sharply from March's 201,000. From AP:
The survey covers hiring only in the private sector. And it has been known to deviate sharply from the government's figures, which will be released on Friday. For example, the government said employers added just 120,000 jobs in March - much lower than ADP's estimate.
S&P worried about California: A larger-than-expected deficit and a court ruling that bars the state from withholding lawmakers' pay has the ratings agency talking about a revision to its positive outlook on California debt. (AP)
Pep Boys purchase in trouble?: The L.A. private equity firm Gores Group has asked for a 30-day delay in completing its planned $1-billion purchase of the auto parts chain. Gores executives are worried about Pep Boys' first-quarter loss of $4.4 million (what could be considered a "material adverse change"). From DealBook:
It is an escape hatch usually built into takeover agreements, allowing a would-be buyer to end a deal if the company being bought has experienced a previously undisclosed weakness in its operations. Different deals have different conditions that must be fulfilled to meet the standard of a MAC, which is also known as a material adverse event. MACs were the root of many contentious battles in the last five years, as buyout firms sought to end deals as the financial crisis began to set in.
Herbalife tries to bounce back: Shares of the L.A.-based maker of nutritional supplements are up about 2 percent this morning after Tuesday's 20 percent drubbing. The drop came after a hedge fund manager - and prominent short seller - raised questions about the way Herbalife distributors are calculated in the company's finances. (DealBook)
More rich Americans giving up their citizenship: Almost 1,800 expatriates turned in their passports last year, up from 235 in 2008. It seems like they don't want to pay taxes. From Bloomberg:
The U.S., the only nation in the Organization for Economic Cooperation and Development that taxes citizens wherever they reside, is searching for tax cheats in offshore centers, including Switzerland, as the government tries to curb the budget deficit. Shunned by Swiss and German banks and facing tougher asset-disclosure rules under the Foreign Account Tax Compliance Act, more of the estimated 6 million Americans living overseas are weighing the cost of holding a U.S. passport.
Lasorda pitches for Ontario Airport: The former Dodgers manager, appearing in a two-minute online commercial, is pushing for local control of the struggling facility. From the WSJ:
The city paid $78,000 to film the commercial, including a $10,000 fee for Mr. Lasorda. The fee is less than the $40,000 or so he usually charges for speaking engagements. Mr. Lasorda says he has occasionally flown out of the Ontario airport, though he lives in Fullerton, about 25 miles away--and slightly closer to Orange County's John Wayne Airport.
Dodger press conference: New owners will be at the stadium this morning to take questions.