BofA, eBay: Tuesday's Headlines

(Updated with news on pay czar, Obama federal worker pay cap, economic data and auto sales preview.)

NEW YORK (TheStreet) -- Here are the top stock market headlines for the morning of Tuesday, September 1, 2009.

Tuesday's Early Headlines

• BofA Reportedly Set to Pay Back Part of TARP. - The Wall Street Journal reports that Bank of America (BAC Quote) is offering to repay part of the $45 billion in bailout money it received from the U.S. government under the Troubled Asset Relief Program. The report adds that the U.S. is pushing for BofA to pay at least $500 million to end a tentative pact that would have had the government share the bank's losses on certain assets. The Journal said BofA would start with a repayment of the $20 billion of additional aid it received in January when the bank was hesitating in buying Merrill Lynch.
• eBay to Sell Skype Unit: Report. - The New York Times reports that eBay (EBAY Quote) will announce Tuesday it has reached a deal to sell its Skype division to a group of private investors, including a venture capital firm headed by Netscape co-founder Marc Andreessen.
• Pay Czar Will Rule Within 60 Days. - The Wall Street Journal reports that Kenneth Feinberg, the Treasury Department's special master for compensation, triggered a 60-day clock to rule on pay packages at seven firms receiving significant amounts of federal rescue funds, but he is expected to decide well ahead of that deadline, according to government officials. The report said Feinberg's judgment will affect compensation for the top 25 earners at Citigroup (C Quote), BofA, American International Group (AIG Quote), Chrysler, General Motors, Chrysler Financial and GMAC Financial.
• Obama Caps Federal Worker Pay Raise at 2%. - The Wall Street Journal reports that President Obama has decided to reduce pay increases for civilian federal workers to 2% from 2.4% in 2010, citing the economic downturn and the rising federal budget as reasons for the cut.
• PetroChina Takes $1.7 Billion Stake in Canadian Project. - The Financial Times reports that PetroChina (PTR Quote) has agreed to pay $1.7 billion for a majority stake in two oil sands projects in northern Alberta. PetroChina will acquire a 60% stake in the two projects, known as Mackay River and Dover, which are being developed by Athabasca Oil Sands, a privately held Calgary-based group.
• Euro-Zone Jobless Rate At Highest Level in More Than a Decade. - The Wall Street Journal reports that the unemployment rate in the 16 countries that use the euro rose to 9.5% in July from 9.4% in June, the highest level since May 1999. The Journal reported that the European Union's Eurostat statistics agency said 167,000 people lost their jobs during the month, leaving 15.09 million without work in the single currency area, more than the entire populations of Austria and Ireland combined.
• SkyEurope Halts Flights as it Files for Bankruptcy. - The New York Times reports that SkyEurope, a Slovakia-based low-cost airline that had sought protection from creditors in June, said Tuesday that it had ceased all operations, effective immediately. The Vienna Stock Exchange suspended SkyEurope's shares before trading began Tuesday, the report said.
• Monthly Auto Sales Data Expected - Automakers will report sales data for the month of August, when the government's Cash for Clunkers program heated up. Edmunds.com estimates that Ford (F Quote) saw sales rise 26% from a year ago, up 13% from July. General Motors is expected to see auto sales fall 25% from a year ago, although that number should be 18% higher from July. Toyota Motor (TM Quote) is expected to see August sales rise 3% from a year ago and 20% compared to July's data.
• Manufacturing, Construction Data on Tap - The Institute for Supply Management will release the August read on its manufacturing index at 10 a.m. EDT. Economists expect the index to rise to 50.2 from 48.9 in July. Any reading over 50 is considered to show expansion in the manufacturing sector. At the same time, the Census Bureau will release construction spending data for July. Economists expect a decline of 0.2%, compared to a 0.3% rise in June.

Tuesday's Earnings Roundup

• Plato Learning (TUTR Quote) posted fiscal third-quarter earnings of a penny a share, matching the lone analyst polled by Thomson Reuters. Revenue fell 10% from a year ago to $16.7 million, better than the single estimate of $16.6 million.