Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."

Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.

"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.

"Next week is going to be a Capitol Hill-driven market."

With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.

Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.

"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.

"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."

Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.

BEWARE OF THE WITCH

This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.

"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.

RETHINKING APPLE

Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.

Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.

On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.

"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.

But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.

(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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Egypt Votes on Constitution; Muslim Brotherhood Expects Approval

Lynsey Addario for The New York Times

A polling site in Cairo on Saturday. Lines were long as a referendum on an Islamist-backed charter got off to an orderly start. More Photos »

CAIRO — Millions of Egyptians voted peacefully on Saturday in a referendum on an Islamist-backed draft constitution, hoping that the results would end three weeks of violence, division and distrust between the Islamists and their opponents over the ground rules of Egypt’s promised democracy.

The Muslim Brotherhood, the main Islamist group aligned with President Mohamed Morsi, predicted a big win for ratification. In the districts that voted Saturday, including the opposition strongholds of Cairo and Alexandria, about 57 percent of voters approved the new constitution, according to preliminary tallies by state news media early Sunday morning.

Half of the country will vote next Saturday, in predominantly rural areas that are expected to heavily favor the charter. The relatively narrow margin of victory for the charter so far, combined with low turnout — 33 percent, according to the unofficial tallies, down from 41 percent in a referendum on a temporary constitution last year — seemed likely to embolden the non-Islamist opposition that has called for Mr. Morsi to scrap the charter and convene a new constitutional assembly.

A spokesman for the main coalition opposing the charter said that it had found widespread irregularities in voting and that its leaders would speak later on Sunday. In Cairo, the biggest city, about 56 percent voted no, according to an unofficial tally by the Muslim Brotherhood.

Regardless of the results, the orderly balloting and long lines marked yet another turning point for Egypt’s nearly two-year-old revolution. After three weeks of clashes and threats of a boycott, millions of voters appeared for the moment to pull back from the brink of civil discord and reaffirm their trust in the ballot box, spending hours in long lines to vote in the sixth national election since the ouster of Hosni Mubarak 22 months ago.

It remained to be seen if the losing side would accept the results, or how long the peace might last. Many who voted yes said they were doing so to end the chaos of the transition rather than to endorse the text of the charter. Despite opposition warnings of chaos, the streets of the capital were free of major protests for the first time in weeks.

And if the constitution is approved by the margins his supporters predict, the smooth vote could fortify Mr. Morsi’s power and legitimacy.

Military officers guarded polling places, and there were few reports of violence. Egyptian state media reported nine injuries in clashes around the Nile Delta town of Dakahleya, and that unknown assailants threw Molotov cocktails near the headquarters of a liberal party that had been part of the opposition under Mr. Mubarak.

As they waited in line to vote, neighbors continued to spar over the contentious process that produced the charter. Some said that it had been unfairly steamrolled by Egypt’s new Islamist leaders over the objections of other parties and the Coptic Christian Church, and that as a result the new charter failed to protect fundamental rights.

Others blamed the Islamists’ opponents for refusing to negotiate, in an effort to undermine democracy because they could not win at the ballot box. Many expressed discontent with political leaders on both sides.

“Neither group can accept its opposition,” said Ahmed Ibrahim, 40, a government clerk waiting to vote in a middle-class neighborhood in the Nasr City area of Cairo. Whatever the outcome, he said, “one group in their hearts will feel wronged, and the other group will gloat over their victory, and so the wounds will remain.”

The referendum once promised to be a day when Egyptians realized the visions of democracy, pluralism and national unity that defined the 18-day revolt against Mr. Mubarak. But then came nearly two years of chaotic political transition in which Islamists, liberals, leftists, the military and the courts all jockeyed for power over an ever-shifting timetable.

The document that Egyptians voted on was a rushed revision of the old Mubarak charter, pushed through an Islamist-dominated assembly in an all-night session, after Christian and secular representatives quit in protest. Many international experts faulted the charter as a missed opportunity, stuffed with broad statements about Egyptian identity but riddled with loopholes regarding the protection of rights.

Mayy El Sheikh and Mai Ayyad contributed reporting.

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8 Christmas Light Shows That Will Rock Your Stockings Off

1. A Christmas Rock Medley

This mind-blowing video comes from South Dakota. Its creator uses the show’s publicity to help raise money for the Make-a-Wish Foundation.

Click here to view this gallery.

[More from Mashable: 63 Digital Media Resources You May Have Missed]

The winter celebration of the evergreen tree is not a modern tradition — it extends back to pre-Christian times and to cultures all over the world.

Maybe your holiday tradition involves stringing thousands of lights across your property for a majestic arrangement. Or perhaps your family just tours the neighborhood to see everyone else’s exhibits. Either way, YouTube is here to provide some sensational seasonal light shows for your viewing and listening pleasure, from festive homes all across the country.

[More from Mashable: 10 Adorable Dog Outfits for the Holidays]

Enjoy these creative displays, and maybe draw a little inspiration for next year’s decorations. If you’re worried about complexity, learn to do it yourself.

Have you seen an unforgettable holiday display we forgot to include? In the spirit of giving, let us know about it in the comments section below.

This story originally published on Mashable here.

Tech News Headlines – Yahoo! News

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Kelly Clarkson Shows Off Her Canary Diamond Engagement Ring

Stylewatch
Style News Now

12/16/2012 at 11:25 AM ET

Kelly Clarkson on WhoSay

Looks like the ginormous carat club has a new member.

Kelly Clarkson showed off her engagement ring on WhoSay on Saturday, hours after announcing her engagement to Brandon Blackstock.

“Everyone has been asking about my engagement ring, so here it is,” she wrote. “It’s a yellow canary diamond with diamonds around it and Brandon designed it with Johnathon Arndt! They did an amazing job!”

Clarkson and Blackstock, a talent manager, began dating late last year. But by November, Clarkson was already eager for some bling. She told Ellen DeGeneres, “I mean, he’s got to put a ring on [it] at some point.”

Now that she has her rock, she’s already thinking wedding bands, too. As she wrote on Twitter, “I can’t wait to make Brandon’s ring with Johnathon as well!” Tell us: What do you think of Clarkson’s ring?

PHOTOS: SEE THE BIGGEST STAR ENGAGEMENT RINGS OF 2012!

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Experts: No link between Asperger's, violence

NEW YORK (AP) — While an official has said that the 20-year-old gunman in the Connecticut school shooting had Asperger's syndrome, experts say there is no connection between the disorder and violence.

Asperger's is a mild form of autism often characterized by social awkwardness.

"There really is no clear association between Asperger's and violent behavior," said psychologist Elizabeth Laugeson, an assistant clinical professor at the University of California, Los Angeles.

Little is known about Adam Lanza, identified by police as the shooter in the Friday massacre at a Newtown, Conn., elementary school. He fatally shot his mother before going to the school and killing 20 young children, six adults and himself, authorities said.

A law enforcement official, speaking on condition of anonymity because the person was not authorized to discuss the unfolding investigation, said Lanza had been diagnosed with Asperger's.

High school classmates and others have described him as bright but painfully shy, anxious and a loner. Those kinds of symptoms are consistent with Asperger's, said psychologist Eric Butter of Nationwide Children's Hospital in Columbus, Ohio, who treats autism, including Asperger's, but has no knowledge of Lanza's case.

Research suggests people with autism do have a higher rate of aggressive behavior — outbursts, shoving or pushing or angry shouting — than the general population, he said.

"But we are not talking about the kind of planned and intentional type of violence we have seen at Newtown," he said in an email.

"These types of tragedies have occurred at the hands of individuals with many different types of personalities and psychological profiles," he added.

Autism is a developmental disorder that can range from mild to severe. Asperger's generally is thought of as a mild form. Both autism and Asperger's can be characterized by poor social skills, repetitive behavior or interests and problems communicating. Unlike classic autism, Asperger's does not typically involve delays in mental development or speech.

Experts say those with autism and related disorders are sometimes diagnosed with other mental health problems, such as depression, anxiety, bipolar disorder or obsessive-compulsive disorder.

"I think it's far more likely that what happened may have more to do with some other kind of mental health condition like depression or anxiety rather than Asperger's," Laugeson said.

She said those with Asperger's tend to focus on rules and be very law-abiding.

"There's something more to this," she said. "We just don't know what that is yet."

After much debate, the term Asperger's is being dropped from the diagnostic manual used by the nation's psychiatrists. In changes approved earlier this month, Asperger's will be incorporated under the umbrella term "autism spectrum disorder" for all the ranges of autism.

__

AP Writer Matt Apuzzo contributed to this report.

___

Online:

Asperger's information: http://1.usa.gov/3tGSp5

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Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."

Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.

"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.

"Next week is going to be a Capitol Hill-driven market."

With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.

Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.

"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.

"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."

Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.

BEWARE OF THE WITCH

This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.

"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.

RETHINKING APPLE

Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.

Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.

On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.

"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.

But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.

(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)

Read More..

Despite Threat of Steep Fines, Protesters Turn Out in Moscow

Pavel Golovkin/Associated Press

Police officers detained the opposition leader Aleksei Navalny during a rally in Lubyanka Square in Moscow on Saturday.

MOSCOW — Forcing a showdown with the government of President Vladimir V. Putin, leaders of the Russian political opposition took to the streets on Saturday afternoon for an unsanctioned demonstration in a symbolic square in Moscow that is home to the headquarters of the federal security services as well as a monument to victims of Soviet political repression.

Bundled up against the frigid cold and wind, with the temperature hovering at about 5 degrees Fahrenheit and the late December light slashing across a clear sky, about 2,000 demonstrators gathered in Lubyanka Square, not far from the Kremlin. They were met by a huge contingent of riot police officers, who quickly cordoned off the area and began making arrests.

The protest without a permit was a pointed act of defiance, particularly by the two most prominent opposition leaders: Aleksei Navalny, an anticorruption activist, and Sergei Udaltsov of the Left Front, a radical socialist group. Mr. Navalny and Mr. Udaltsov face a growing number of criminal charges and have lived for weeks with the prospect of imminent arrest.

Mr. Udaltsov was seized by the riot police moments after he arrived, at about 3 p.m., and hustled into a police van. “I am not violating any laws,” he shouted as he was taken away. “Russia will be free.”

Mr. Navalny, by contrast, arrived surrounded by a large scrum of photographers and worked the crowd like a politician on a rope line, shaking hands with supporters. He seemed buoyant and carefree and said, “O.K., let’s stand here awhile.” The mob around him seemed to forestall his arrest, but not for long. He was detained about an hour after his arrival.

Other well-known opposition leaders were given no leeway. A television personality, Kseniya Sobchak, and a liberal activist, Ilya Yashin, were arrested immediately after emerging from a nearby cafe. About an hour and a half later, the police began arresting dozens of rank-and-file demonstrators.

The crowd was a fraction of the size of previous rallies this year, suggesting that interest may be waning. The inability of the opposition leaders and the authorities to agree on the terms for a protest permit also suggested that each side’s resolve might be hardening.

By attending the rally, demonstrators showed they were unbowed by a law signed by Mr. Putin in June that imposes steep fines — of more than $9,000 for participants and more than $18,000 for organizers — for taking part in unsanctioned protests.

“Today we showed the authorities that we have principles and dignity, that they cannot forbid us from taking a walk in our own city, because we will come anyway,” said Dmitri Gudkov, one of a small number of Russian lawmakers to support the opposition openly. “There is still protest and we want change, and they can’t frighten us with detention or pressure or searches or arrests or anything else.

“If you want to avoid massive acts of protest, initiate reforms, my friends, and the people will not come out to protests.” By swiftly arresting the main opposition leaders, the authorities seemed to calculate that they would face minimal public reaction, though that is likely to be determined by how severely the opposition members are treated within the judicial system.

The law that increased fines is one of numerous steps Mr. Putin’s government has taken to clamp down on political dissent in the year since evidence of fraud in parliamentary elections last December set off a series of large street demonstrations here.

The early protests were marked by a certain giddiness, as many middle-class Muscovites embraced the newfound spirit of political activism. But with Mr. Putin’s return to the presidency, after a solid victory in elections last March, the space for political dissent has contracted.

The authorities have opened numerous criminal investigations into leaders of the political opposition, carried out repeated searches of their homes and businesses, and filed charges that in some cases could lead to lengthy prison sentences.

On Friday, the authorities announced yet another criminal investigation of Mr. Navalny, accusing him and his brother, Oleg, who is a post office employee, of a strange scheme to steal money in business deals by overcharging for the services of a private courier company.

Ellen Barry and Andrew Roth contributed reporting.

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RIM shows how BlackBerry 10 touch screen keys could rival its traditional keyboards [video]

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Connecticut Shooting: Bodies Removed from School, Positively Identified

By Mike Fleeman

12/15/2012 at 10:25 AM EST

Connecticut State Police Lt. J. Paul Vance

Mary Altaffer/AP

A horrific day turned to a night of unspeakable grief as parents received formal notifications that their children were killed in the Connecticut school massacre.

The last of the dozens of bodies – most of them children – were removed by early Saturday from Sandy Hook Elementary School in Newtown, Conn.

"Our objective certainly was to positively identify the victims to try to give the families some closure," State Police Spokesman Lt. Paul Vance tells CBS News. "Our detectives worked well through the night. By early this morning, we were able to positively identify all of the victims and make some formal notification to all of the families of the victims."

The gunman, identified by multiple law enforcement sources as 20-year-old Adam Lanza, killed 20 children between the ages of 5 and 10 and six adults, before taking his own life at the school. His mother also was killed at a different location, bringing the total death toll to 28.

Eighteen children were pronounced dead at the scene and two at the hospital; six adult victims were pronounced dead at the scene, the Los Angeles Times reports.

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Fewer health care options for illegal immigrants

ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.

The family's options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama's health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can't afford to care for as many poor families.

To be clear, Obama's law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.

But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don't expand Medicaid, the joint state-federal health program for the poor and disabled.

When the reform has been fully implemented, illegal immigrants will make up the nation's second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.

And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.

In communities "where the number of undocumented immigrants is greatest, the strain has reached the breaking point," Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. "In response, many hospitals have had to curtail services, delay implementing services, or close beds."

The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.

Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict "a double whammy" in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $1.2 billion annual budget to care for illegal immigrants.

Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.

A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.

California, which is home to the nation's largest population of illegal immigrants, spent an estimated $1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.

The New Jersey Hospital Association in 2010 estimated that it cost between $600 million and $650 million annually to treat 550,000 illegal immigrants.

And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $96 million in benefits to illegal immigrants, up from $81 million two years earlier. The state's public hospital districts spent an additional $717 million in uncompensated care to treat that population.

If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision "basically eviscerates" the effects of the health care overhaul in those areas because of "who lives there and what they're eligible for," said Lisa Clemans-Cope, a senior researcher at the Urban Institute.

Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it's believed states with the most illegal immigrants will face a smaller cut, they will still lose money.

The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.

"In a sense we've been in the worst-case scenario in Texas for a long time," said Lewis Foxhall, MD Anderson's vice president of health policy in Houston. "The large number of uninsured and the large low-income population creates a very difficult problem for us."

Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors' offices. But in the first year, $600 million was cut from the centers' usual allocation, leaving many to use the money to fill gaps rather than expand.

There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.

Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.

For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.

"They always attended to me," she said, "even though it's slow."

___

Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .

Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .

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