Waiting on fiscal cliff compromise, stocks meander









The stock market moved between small gains and losses in early trading Thursday. Uncertainty about the approaching “fiscal cliff,” just days away, was top of mind for many traders.

The House planned to move ahead on what Speaker John Boehner called “Plan B,” though President Barack Obama has threatened to veto it.

Shortly after 10 a.m. EST, the Dow Jones industrial average was up seven points at 13,259. The Standard & Poor's 500 was up two at 1,438. The Nasdaq composite index rose a fraction to 3,045.

Also at the forefront for many traders was the news that NYSE Euronext, the parent of the New York Stock Exchange, planned to sell itself to IntercontinentalExchange, an upstart and lesser-known exchange operator based in Atlanta.

NYSE Euronext's stock surged 31 percent, rising $7.40 to $31.45. IntercontinentalExchange fell $2.89 to $125.42. That signals traders think the proposed deal could be more beneficial to NYSE Euronext than to its potential buyer. The marriage still needs the approval of regulators, and it isn't clear if they'll offer it.

In Washington, the Republicans' proposal would raise taxes on the wealthy, something the Democrats have pushed for. But the plan also left in place budget cuts to the military and domestic agencies that Democrats have generally opposed.

If the Republicans and Democrats don't work out a compromise before the end of the month, the U.S. could go over the “fiscal cliff,” a reference to taxes increases and sweeping government spending cuts that would automatically kick in if no budget deal is in place. Some economists fear that would push the U.S. back into recession.

To be sure, many observers expect that a deal will be worked out ahead of the deadline — perhaps at the last minute, and with lots of political theatrics, but worked out nonetheless. In the meantime, the uncertainty has kept the market sluggish and indecisive for weeks.

Even without the complications of the fiscal cliff, the U.S. economy has been difficult to read, a pattern that continued Thursday.

The government said the U.S. economy grew at an annual rate of 3.1 percent over the summer, higher than the previous estimate of 2.7 percent. But the growth is likely to slow in the current quarter and early next year.

The government also reported that the number of Americans applying for unemployment benefits rose last week, a disappointment after four straight weeks of declines. But the four-week moving average of jobless claims, a less volatile measurement, fell.

A slate of companies reported earnings, with varied results:

—Darden Restaurants, the parent of Olive Garden and Red Lobster, slipped 78 cents to $46.03 after the company reported lower profit and revenue.

—Rite Aid, the drugstore chain, soared 10 percent, rising 11 cents to $1.15, after the company reported its first quarterly profit since 2007.

—Discover Financial Services fell $1.26 to $38.51. The company reported higher profit and revenue, but earnings missed analysts' expectations.

—Scholastic, publisher of the best-selling “The Hunger Games” trilogy, slipped 73 cents to $28.56 after reporting lower profit and revenue.

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Bork, whose failed Supreme Court nomination made history, dies









Robert H. Bork, who stepped in to fire the Watergate prosecutor at Richard Nixon's behest and whose failed 1980s nomination to the Supreme Court helped draw the modern boundaries of cultural fights over abortion, civil rights and other issues, has died. He was 85.

Son Robert H. Bork Jr. confirmed the death Wednesday. His father had a long career in politics and the law that took him from respected academic to a totem of conservative grievance.

Bork was accused of being a partisan hatchet man for Nixon when he fired Watergate special prosecutor Archibald Cox in the Saturday Night Massacre of 1973.

Bork's drubbing during the 1987 Senate nomination hearings made him a hero to the right and a rallying cry for younger conservatives.




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Facebook CEO Zuckerberg donating $500M in stock






SAN FRANCISCO (AP) — Facebook CEO Mark Zuckerberg said he is donating nearly $ 500 million in stock to a Silicon Valley charity with the aim of funding health and education issues.


Zuckerberg donated 18 million Facebook shares, valued at $ 498.8 million based on their Tuesday closing price. The beneficiary is the Silicon Valley Community Foundation, a nonprofit that works with donors to allocate their gifts.






This is Zuckerberg’s largest donation to date. He pledged $ 100 million in Facebook stock to Newark, N.J., public schools in 2010, before his company went public earlier this year. Later in 2010, he joined Giving Pledge, an effort led by Microsoft Corp. founder Bill Gates and Berkshire Hathaway Inc. CEO Warren Buffett to get the country’s richest people to donate most of their wealth. His wife, Priscilla Chan, joined with him.


In a Facebook post Tuesday, Zuckerberg, 28, said he’s “proud of the work” done by the foundation that his Newark donation launched, called Startup: Education, which has helped open charter schools, high schools and others.


With the latest contribution, he added, “we will look for areas in education and health to focus on next.” He did not give further details on what plans there may be for funds.


“Mark’s generous gift will change lives and inspire others in Silicon Valley and around the globe to give back and make the world a better place,” said Emmett D. Carson, CEO of the foundation.


Social Media News Headlines – Yahoo! News





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Adele voted AP Entertainer of the Year


NEW YORK (AP) — Though Adele didn't have a new album or a worldwide tour in 2012, she's still rolling. After a year of Grammy glory and James Bond soundtracking, Adele has been voted The Associated Press Entertainer of the Year.


In 132 ballots submitted by members and subscribers of the AP, Adele easily outpaced other vote-getters like Taylor Swift, "Fifty Shades of Grey" author E.L. James, the South Korean viral video star PSY and the cast of "Twilight." Editors and broadcasters were asked to cast their ballot for the person who had the most influence on entertainment and culture in 2012.


Adele's year began in triumph at the Grammys, took a turn through recording the theme to the 007 film "Skyfall," and ended with the birth of her son in October. The ubiquitous Adele was that rare thing in pop culture: an unqualified sensation, a megastar in a universe of niche hits.


By the end of the year, her sophomore album, "21," had passed 10 million copies sold in the U.S., only the 21st album in the Nielsen SoundScan era (begun in 1991) to achieve diamond status. Buoyed by hits like "Someone Like You" and "Rolling in the Deep" long after its release in early 2011, "21" was also the top-selling album on iTunes for the second year running.


As David Panian, news editor for Michigan's Daily Telegram, put it: "It just seemed like you couldn't turn on the radio without hearing one of her songs."


Women have had a lock on the annual Entertainer of the Year selection. Previous winners include Lady Gaga, Taylor Swift, Betty White and Tina Fey. Stephen Colbert is the lone male winner in the six-year history of voting.


The Grammy Awards in February were essentially the de-facto crowning of the 24-year-old Adele, whose real name is Adele Adkins, as a pop queen. She won six awards, including album of the year. It was also a comeback of sorts for Adele, who performed for the first time since having vocal cord surgery, drawing a standing ovation from the Staples Center crowd.


Accepting the album of the year award, a teary Adele exclaimed: "Mum, girl did good!" The emotional, sniffling singer endeared many viewers to her when she copped in her acceptance speech to having "a bit of snot."


"This record is inspired by something that is really normal and everyone's been through it: just a rubbish relationship," said Adele.


But her luck in love has since turned, thanks to her boyfriend Simon Konecki. In an interview with Vogue magazine, Adele said she was through with break-up records and done being "a bitter witch." When Adele announced in June that she was having a baby with Konecki, her website promptly crashed under the heavy traffic. Their son was born in October.


With such an avalanche of success and now a mother of a newborn son, Adele has understandably taken a step out of the spotlight. One notable exception was recording the opening credits theme song to "Skyfall." The song was recorded with her "21" producer Paul Epworth at the Abbey Road Studios in London with a 77-piece orchestra. Within hours, it zoomed to the top of digital charts.


"There was an overwhelming embrace of Adele and her music," said Joe Butkiewicz, executive editor of the Times Leader in Wilkes-Barre, Pa. "And that was never more evident to me than when I heard teenagers express their enthusiastic expectations for the new James Bond movie because Adele performed the theme song."


The song recently received a Golden Globe nomination. No Bond theme has ever won the best original song Oscar, but given Adele's awards success thus far, it wouldn't be a stretch to think she has a chance of changing that. The tune is among the 75 short-listed songs in the Academy Awards category.


___


Projects Editor Brooke Lansdale contributed to this report.


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Sandy stifled housing starts in November, though permits were up









WASHINGTON -- New housing starts fell 3% in November from the previous month as Superstorm Sandy kept builders from breaking ground in the Northeast, the Commerce Department reported Wednesday.


But the number of building permits issued, a sign of future activity, rose 3.6% last month compared with October. It was the highest level in more than four years and an indication that the housing market is continuing its strong rebound despite Sandy's effects.


Compared with a year earlier, housing starts and building permits were up sharply.





Construction began on new privately owned residential homes at a seasonally adjusted annual rate of 861,000 in November, down from a revised rate of 888,000 in October. The reading was below analysts' expectations of a drop to about an 872,000 annual pace.


Starts dropped 5.2% in the Northeast, which was hit hard by Sandy on Oct. 29-30. Starts also fell 19.2% in the West, but were up 3.3% in the Midwest and 2.9% in the South.


Compared with a year earlier, starts were down 25.5% in the Northeast, the only region to show a decrease.


Building permits also dropped about 6.2% in the Northeast in November form the previous month. But permits were up in the rest of the country to an annual rate of 899,000, their highest level since July 2008.


The annual rate of permits was a 26.8% increase from a year earlier. Despite last month's drop, housing starts also were well above last year's pace, up 21.6% compared with November 2011.


Low mortgage rates and an improving jobs market has helped fuel the housing sector rebound. On Tuesday, the National Assn. of Home Builders and Wells Fargo & Co. reported that builder confidence rose in December to its highest level in more than six years.


US Housing Starts Chart

US Housing Starts data by YCharts


ALSO:


In defense-heavy San Diego, 'fiscal cliff' threat hits home


Builder confidence in housing is at highest point since 2006


Southern California posts most November home sales in six years


Follow Jim Puzzanghera on Twitter and Google+.





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Newport Beach dock renters may withhold holiday love









Marcy Cook embraces the holiday season. The tell? Start with the teddy bears dressed as Santa. More than 1,500 stand sentry around and inside her Newport Beach waterfronthome. Garland and strings of lights threaten to strangle the place like kudzu.


"We decorate a little bit, if you haven't noticed," said Cook, 69. "It's the highlight of the year for us."


Each Christmas, Newport Harbor is ablaze in lights as homeowners go to extraordinary lengths to complement the city's annual Christmas Boat Parade — an indelible tradition that renews itself Wednesday night and continues through Sunday.





But this has been a stressful season here along the tranquil waterfront lined with multimillion-dollar homes.


An increase in city rental fees for residential docks that protrude over public tidelands created a furor when it was approved last week by the City Council.


It also prompted a call to boycott the boat parade and festival of lights by a group calling itself "Stop the Dock Tax."


"It costs us thousands of dollars to voluntarily decorate our homes and boats to bring holiday smiles to nearly 1 million people," organization Chairman Bob McCaffrey wrote to the city. "This year, we are turning off our lights and withdrawing our boats in protest of the massive new dock tax we expect the City Council to levy."


Pete Pallette, a fellow boycott proponent and harbor homeowner, told city leaders the group would call off the boycott only if the council delayed voting on the rent hike. "Otherwise," he vowed, "game on."


In a place where homes come with names and mega-yachts bob in the harbor, it might appear the wealthy are wielding a weapon most often reserved for the masses. A holiday blackout, proponents say, will underscore their displeasure.


Newport's dock fee, which has stood at $100 a year for the last two decades, will now be based on a dock's size. The city says rents will increase to about $250 for a small slip to $3,200 annually for a large dock shared by two homeowners.


"People have been paying $8 a month all these years to access what is public waters," said Newport Beach City Manager Dave Kiff. "That's a pretty good deal. The City Council didn't think the increase it approved was too extreme."


Many did.


They packed council meetings when the hike was discussed, accusing the city of an excessive money grab.


They brushed aside the city's rationale: Statelawmandates cities charge fair market rents for the private use of public lands, and Newport Beach was only now catching up.


And they were unmoved by arguments that the extra revenue will go exclusively to badly needed repairs to a harbor that, despite outward appearances, needs a lot of work.


The city's five-year plan for the harbor calls for $29 million in long-overdue maintenance. Its silt-filled channels haven't been fully dredged since the Great Depression. Ancient, leaky sea walls protecting neighborhoods need to be repaired or replaced.


"We have the makings of a perfect storm like they did on the East Coast" during Superstorm Sandy, said Chris Miller, the city's harbor resources manager. "The sea walls are nearing the end of their useful life."


Even with the rent increases, Newport's dock owners will contribute a tiny fraction of that cost — the rest coming from the federal government and the city's general operating fund.


As dock owners fumed over having to pay more, others recoiled at the proposed boycott of the boat parade, which dates to 1908 when a single gondola led eight canoes illuminated by Japanese lanterns around the harbor. It has now swelled to a decent-sized armada of dozens of boats — some carrying paying customers — that circle past the decorated harbor-front homes.


"The boycott is ridiculous," said Shirley Pepys, whose frontyard on Balboa Island has been taken over by a family of penguins dressed for a Hawaiian luau.





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Xbox SmartGlass updated with second-screen ESPN and NBA Game Time app experiences









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NBC correspondent escapes Syria kidnapping


BEIRUT (AP) — More than a dozen heavily armed pro-regime gunmen kidnapped NBC's chief foreign correspondent Richard Engel and several colleagues for five days inside Syria, threatening them with mock executions and keeping them bound and blindfolded until they escaped unharmed during a firefight between their captors and rebels, Engel said Tuesday.


Speaking to NBC's "Today" show one day after the escape, an unshaven Engel said the kidnappers executed at least one of his rebel escorts on the spot at the time he was captured. He also said he believes the kidnappers were a Shiite militia group loyal to the Syrian government, which is fighting a deadly civil war against rebels.


"They kept us blindfolded, bound," said 39-year-old Engel, who speaks and reads Arabic. "We weren't physically beaten or tortured. A lot of psychological torture, threats of being killed. They made us choose which one of us would be shot first and when we refused, there were mock shootings," he added.


"They were talking openly about their loyalty to the government," Engel said. He said the captors were trained by the Iranian Revolutionary Guard and allied with Hezbollah, the Lebanese Shiite militant group.


"They captured us in order to carry out this exchange," he said.


Both Iran and Hezbollah are close allies of the embattled Syrian regime, which has become a global pariah since it unleashed its forces in March 2011 to crush mostly peaceful protests against the regime. The bloody crackdown on protests led many in Syria to take up arms against the government, and the conflict has morphed into a civil war.


Engel said he was told the kidnappers wanted to exchange him and his crew for four Iranian and two Lebanese prisoners being held by the rebels.


Around 11 p.m. Monday, Engel said he and the others were being moved to another location in northern Idlib province.


"And as we were moving along the road, the kidnappers came across a rebel checkpoint, something they hadn't expected. We were in the back of what you would think of as a minivan," he said. "The kidnappers saw this checkpoint and started a gunfight with it. Two of the kidnappers were killed. We climbed out of the vehicle and the rebels took us. We spent the night with them."


The team crossed back into neighboring Turkey earlier Tuesday.


NBC did not identify the others who were kidnapped along with Engel. The network said there was no claim of responsibility, no contact with the captors and no request for ransom during the time the crew was missing.


The Syrian government has barred most foreign media coverage of the civil war in Syria, which has killed more than 40,000 people since the uprising began in March 2011. Those journalists whom the regime has allowed in are tightly controlled in their movements by Information Ministry minders. Many foreign journalists sneak into Syria illegally with the help of smugglers.


Several journalists have been killed covering the conflict. Among them are award-winning French TV reporter Gilles Jacquier, photographer Remi Ochlik and Britain's Sunday Times correspondent Marie Colvin. Also, Anthony Shadid, a correspondent for The New York Times, died after an apparent asthma attack while on assignment in Syria.


Engel joined NBC in 2003 and was named chief foreign correspondent in April 2008. He previously worked as a freelance journalist for ABC News, including during the U.S. invasion of Iraq. He has lived in the Middle East since he graduated from Stanford University in 1996, according to his biography from NBC.


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The Doctor’s World: BMJ’s Holiday Tradition of Lighthearted, but Rigorous, Scholarship





LONDON — Dutch and Norwegian scientists say they have solved a glowing mystery: why Rudolph the reindeer’s nose is red.




By traveling to the Arctic and using video-microscope and thermal imaging technology, the scientists showed that the glow is from tiny blood vessels that are more abundant in the noses of reindeer than in humans’. Yes, seriously. The findings are being reported next week in BMJ, formerly known as The British Medical Journal, a publication with a quirky holiday tradition.


For the past 30 years, BMJ has devoted its Christmas-week issue to a lighter and sometimes brighter side of medicine, publishing unusual articles that vary from simply amusing to bizarre to creative or potentially important. All are based on methodologically sound science.


Alongside Rudolph on the cover of this year’s holiday issue is Cliff, a 2-year-old beagle who was trained by another Dutch team to accurately sniff out the sometimes fatal bacterial bowel infection Clostridium difficile and make the diagnosis in minutes — days faster than standard laboratory tests. The Christmas tradition began in 1982, originally intended as a one-time effort to give readers a break from stodgy scientific reports written in technical jargon. The editor then, Dr. Stephen P. Lock, recalled in an interview that he wanted to present “another side of medicine” by offering lighter reading: research oddities, bizarre stories and history. But this was no April fools’ issue: Dr. Lock insisted that the articles meet the same rigorous criteria as research published in regular issues.


Indeed, some articles in the holiday issue are also suitable for regular issues, said Dr. Tony Delamothe, the BMJ deputy editor who has overseen the last eight Christmas issues. “We are on an incessant search for novelty,” he said.


Over the years, BMJ Christmas reports have demolished myths, including a Danish one that people could get drunk by absorbing alcohol through the feet. After soaking their feet for three hours in a basin containing three bottles of vodka and measuring their blood alcohol levels, three Danish scientists found no such absorption.


The first Christmas issue included an account of a resuscitation from 1650 that still astounds today. An unwed 22-year-old mother in Oxford was condemned to death after being accused of murdering her premature, stillborn son and concealing his body. She was executed by hanging by the neck for half an hour while people present jerked her up and down.


At the time, the bodies of executed prisoners were given to doctors for anatomical dissection. Two doctors who opened the woman’s coffin were startled to hear raspy breaths. They revived her, and she went on to recover her memory and live another 15 years, marrying and giving birth to three children. The 17th-century doctors’ report met the criteria for a modern case report, wrote J. Trevor Hughes, the author of the 1982 article.


Dr. Lock, the editor, also encouraged historical back stories. In 1984, Dr. Charles Fletcher wrote about how he tested ways to safely administer the first precious batches of penicillin in 1941. The initial full test was on a 43-year-old British policeman who developed the widespread bacterial infection septicemia. He showed striking improvement from small doses of the antibiotic, but he died after the scarce supply — much of it recycled from his urine — ran out.


Many Christmas issue accounts would have upset earlier BMJ editors “like mad,” Dr. Lock said. “But so what?” he added. “It was fun.” Now there is so much competition for a spot in the issue that some authors submit papers early in the year and request publication at Christmastime.


Some articles poke fun at hoary traditions, such as diagnosing ailments in historical figures despite the lack of medical evidence. Mozart is a special favorite of armchair diagnosticians, Dr. Lucien R. Karhausen wrote in 2010 after tabulating articles reporting 140 possible causes of death and 27 mental disorders in the composer. Many, he said, were based on shoddy medical interpretations, undocumented “eyewitness accounts” or the ignoring of criteria that separate normal and abnormal behavior.


“Some causes are plausible,” Dr. Karhausen wrote, “only a few — maybe one, or maybe none of them — can be true, so most if not all are false.”


In 2006, BMJ reported on the results of a questionnaire sent to 110 members of the Sword Swallowers’ Association International. Forty-six members responded; they reported having swallowed more than 2,000 swords in the three preceding months. Sore throats (“sword throats”) were common during the learning phase, and after frequent repeated performances. Swallowers rarely sought medical advice. Of six who perforated their pharynx or esophagus, three needed surgery. No deaths were reported.


Still other articles play on the vanity of doctors, many of whose names are attached to instruments and syndromes. An article in 2010 extended the list to food products developed by doctors, including Kellogg’s Corn Flakes, various cookies, and Penfolds and Lindeman’s, the Australian wines.


As for the animals featured in this year’s holiday issue: The story of the infection-sniffing beagle began with a report from a nurse in the Netherlands, who mentioned that a patient’s stool had the distinctive odor of C. difficile — a bacterium that is causing serious and growing public-health problems in many countries, including the United States.


A team led by Dr. Marije K. Bomers at the VU University Medical Center in Amsterdam reasoned that it might be possible to train dogs to detect the infection, and Cliff the beagle did just that.


Cliff was trained to sit or lie down when he smelled C. difficile in the air walking by a patient’s bedside, and he also quickly and accurately identified all 50 stool samples with C. difficile and 25 of 30 infected patients — along with 50 stool samples free of the bacteria and 265 of 270 uninfected patients.


And the Dutch team that studied reindeer, working with researchers at the University of Tromso in the Norwegian Arctic, used a hand-held video microscope to observe the deer’s nasal capillaries as they ran on a treadmill.


The capillaries are arranged in circular clusters at different locations through the nose. Those in reindeer noses are 25 percent thicker than those observed in the human nose and are believed to perform critical roles like heating, delivering oxygen and humidifying inhaled air to keep the animal’s nose from freezing. (The leader of the team, Can Ince, a physiologist at Erasmus University Medical Center in Rotterdam, says he has a financial interest in the company that manufactures the technology, which is used to monitor reactions to various drugs and therapies among critically ill human patients.)


By showing that a large number of red blood cells flowed through the small nasal vessels, the scientists said they had unlocked the mystery of Rudolph’s red nose. May it long glow.


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Stocks gain on optimism that budget deal is near













stocks


Markets in New York are on the upswing on news that there might be some progress in "fiscal cliff" negotiations.
(Bloomberg / December 18, 2012)































































Stocks edged higher on Wall Street amid optimism that the lawmakers in Washington are closing in on a budget deal that will stop the U.S. going over the “fiscal cliff.”

The Dow Jones industrial average rose 42 points to 13,277 as of 7:37 a.m., Pacific time. The Standard & Poor's 500 gained six points to 1,437. The Nasdaq composite rose 20 points to 3,030.

House Speaker John Boehner told reporters Tuesday that he remains hopeful that a fiscal cliff compromise can be reached but, says President Barack Obama has yet to offer a balanced deficit-cutting plan. Boehner said that Obama's latest offer is for $1.3 trillion in tax increases over the next decade with $850 billion in spending cuts is not balanced enough.

“People are cheering the prospect for some compromise in Washington right now,” said Joe Costigan, director of equity research at Bryn Mawr Trust Co. “At the moment there is some pretty good news and the market is reacting favorably to it, but the deal isn't done yet.”

Stocks slumped after the election Nov. 6 on concern that a divided government would struggle to reach an agreement before Jan. 1, when a series of series of tax increases and government spending cuts are scheduled to take effect if no deal is reached. Those measures could push the U.S. back into recession. The S&P has since recouped all of those losses.

The yield on the 10-year Treasury note climbed 1 basis point to 1.79 percent.

Among stocks making big moves today;

Arbitron, a provider of radio ratings, surged $8.96 to $47.01 after TV ratings company Nielsen said it would buy Arbitron for about $1.26 billion.


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