Monday morning headlines

Stocks up sharply: The week, month, and quarter open with fairly positive economic news in the U.S. and Europe. Dow is up 150 points.

Encouraging factory news: U.S. manufacturing grew for the first time in four months, according to the widely followed Institute for Supply Management. (AP)

But unemployment in Europe is high: The jobless rate in the 17-member euro zone rose to 11.4 percent in August. Austria had the lowest rate, at 4.5 percent, and Spain had the highest, at 25.1 percent, (NYT)

Gas prices inch higher: An average gallon of regular in the L.A. area is $4.184, according to the Auto Club, up almost four cents from last week.

Film tax credit extended: Gov. Brown signed into law a measure that provides a $100 million-a-year giveaway through 2017 to movie and TV producers who work in California. (Capitol Alert)

Box office report: "Hotel Transylvania" opened with $43 million, the biggest September weekend debut. "Looper" was in the number two spot with $21.2 million. (THR)

Airlines cut and consolidate: Just five carriers serve 85 percent of the U.S. market, compared with 10 airlines serving 90 percent of the market in 2000, according to a government report. From the LAT:

Of the 457 airports in the country, 61 have lost half or more of the carriers serving their communities over the last five years. Meanwhile, the number of flights of less than 500 miles have been cut by 3,000 a day in that same period, according to the report. The hardest hit cities have been Cincinnati, with a 63% cut in scheduled flights; Pittsburgh, with 40% fewer flights; and Memphis, with 35.5% fewer flights, according to the report.