Wall Street Week Ahead: "Cliff" worries may drive tax selling

NEW YORK (Reuters) - Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.

The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-loss selling even more appealing than usual.

Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it's still up nearly 32 percent for the year.

Apple dropped 8.9 percent in this past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one's tax bill is going to jump sharply just because the calendar changes.

"Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

"You have a lot of high-net-worth individuals in taxable accounts, and that could be what's affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual."

Of this year's top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.

The rush to avoid higher taxes on portfolio gains could cause additional weakness.

The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.

A PAIN PILL FROM THE FED?

Next week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. on Wednesday after the conclusion of the meeting - the Fed's last one for the year.

Friday's jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that Superstorm Sandy had hit the labor market hard.

"After the FOMC meeting, I think it's going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely," said Mohannad Aama, managing director of Beam Capital Management LLC in New York.

"I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year," he said.

MORE VOLUME AND VOLATILITY

Volume could increase as investors try to shift positions before year end, some analysts said.

While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade's chief derivatives strategist.

Volatility could pick up as well, and some of that is already being seen in Apple's stock.

"The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple's volatility to carry over into the market volatility," said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.

Shares of Apple, the largest U.S. company by market value, registered their worst week since May 2010. In another bearish sign, the stock's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38.

"There's a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple," Aama said.

While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.

To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.

Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there's a decent chance that the market could rally before year end.

"Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it's hung in there in anticipation of something coming," he said.

(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)

(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on .L/O; Pan-European stock market outlook .EU/O; Tokyo stock market outlook .T/O; Wall St Week Ahead runs every Friday.)

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Egyptian military says only dialogue can avert disaster

CAIRO (Reuters) - Egypt's military, stepping into a crisis pitting Islamist President Mohamed Mursi against opponents who accuse him of grabbing excessive power, said on Saturday only dialogue could avert "catastrophe".

State broadcasters interrupted their programs to read out an army statement telling feuding factions that a solution to the upheaval in the most populous Arab nation should not contradict "legitimacy and the rules of democracy".

That sounded like a swipe at protesters who have besieged the palace of the freely elected president and called for his removal, going beyond mainstream opposition demands for him to retract a decree that expanded his powers.

The statement also called for a "serious" national dialogue - perhaps one more credible than talks convened by Mursi on Saturday in the absence of opposition leaders. They insist he must first scrap his November 22 decree, defer next week's popular vote on a new constitution and allow the text to be revised.

Deep rifts have emerged over the destiny of a country of 83 million where the end of Hosni Mubarak's 30 years of military-backed one-man rule led to a messy army-led transition, during which the Muslim Brotherhood and its allies won two elections. Many Egyptians crave stability and economic recovery.

The spokesman for the main Islamist coalition demanded that the referendum go ahead on time on the constitution drafted by an Islamist-led assembly from which liberals had walked out.

The army, which ran Egypt for months after Mubarak fell in February 2011, again cast itself primarily as the neutral guarantor of the nation. A military source said there was no plan to retake control of the country or its turbulent streets.

"DARK TUNNEL"

"The armed forces affirm that dialogue is the best and only way to reach consensus," the statement said. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

Mursi's office said the president opened his "national dialogue" with about 40 political and other public figures discussing "means to reach a solution to differences over the referendum...and the constitutional decree".

Prime Minister Hisham Kandil told an Egyptian television channel that the talks had led to creating a committee to review Mursi's November 22 decree and to work out legal ways to postpone the referendum. He said a new decree could be issued.

"All options are on the table to reach consensus," he said, adding that it was vital to take action to shore up Egypt's economy that has been battered by the turmoil.

The main opposition coalition, the National Salvation Front, which boycotted Mursi's dialogue repeated its call on Saturday for scrapping the decree and the referendum on the constitution.

Instability in Egypt worries the West, especially the United States, which has given Cairo billions of dollars in military and other aid since it made peace with Israel in 1979.

The army might be pushing the opposition to join dialogue and Mursi to do more to draw them in, said Hassan Abu Taleb of the Al Ahram Center for Political and Strategic Studies.

He discounted the chance of direct military intervention, adding: "They realize that interfering again in a situation of civil combat will squeeze them between two rocks."

However, the military did seem poised to take a more active role in security arrangements for the December 15 referendum.

A cabinet source said the cabinet had discussed reviving the army's ability to make arrests if it were called upon to back up police, who are normally in charge of election security.

According to the state-run daily al-Ahram, an expanded military security role might extend to the next parliamentary election and, at the president's discretion, even beyond that.

The army issued its statement while protesters were still camped out by the gates of the presidential palace.

The tens of thousands of Mursi foes who surged past tanks and barbed wire to reach the palace gates on Friday night had dispersed. But a hard core stayed overnight in a score of tents.

"LEAVE"

Some had spray-painted "Down with Mursi" on tanks of the elite Republican Guard posted there after clashes between rival groups killed at least seven people and wounded 350 this week.

Others draped the tanks with posters of Mursi and the word "Leave" scored across his face in red letters.

"We are no longer calling for scrapping the decree and delaying the referendum," Samir Fayez, a Christian protester at the palace, said. "We have one demand in five letters: leave."

Nearby, a Mursi supporter named Mohamed Hassan was quietly observing the scene. He suggested that the Muslim Brotherhood and its ultra-orthodox Salafi Islamist allies could easily overwhelm their foes if they chose to mobilize their base.

"The Brotherhood and Salafis by themselves are few but they have millions of supporters who are at home and haven't taken it to the streets yet," murmured the 40-year-old engineer.

The Muslim Brotherhood's supreme guide, Mohamed Badie, denounced opposition protests that have swirled around the walls of Mursi's palace, saying they "ruin legitimacy".

Badie said eight people, all of them Brotherhood members, had been killed this week and urged the interior minister to explain why police had failed to prevent assailants from torching the organization's headquarters and 28 other offices.

"Get angry with the Brotherhood and hate us as much as you like, but be reasonable and preserve Egypt's unity," he told a news conference. "We hope everyone gets back to dialogue."

The well-organized Brotherhood, which thrust Mursi from obscurity to power, remains his surest source of support.

(Additional reporting by Edmund Blair, Omar Fahmy and Yasmine Saleh; Editing by Stephen Powell)

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Are Online Degrees as Valuable as Traditional College Diplomas?

Millennials are the first generation to grow up with constant technology and personal computers. That might explain why they see such a value in online education.

A recent poll by Northeastern University showed that 18 to 29 year olds had a more negative view about attending college because of the high cost, and a more positive opinion about online classes than their older counterparts. The survey also showed more than half of the millennials had taken an online course.

Online education is attracting hundreds of thousands of students a year. Perhaps this is why more brick-and-mortar universities are searching for an online identity.

This week Wellesley College announced that it will offer free online classes to anyone with an Internet connection as part of the nonprofit project edX. Earlier this year, Harvard University and Massachusetts Institute of Technology teamed up to fund and launch the online platform.

More: Harvard and MIT Want to Educate You for Free

Online education was even the talk in Washington this week when a group of panelists convened to discuss Massive Open Online Courses (MOOC), which is an open source network like edX. These courses are very much like correspondence classes in the early 20th century.

But there are still those universities that only exist in a virtual world and students pay to attend. Are they as beneficial to students as attending a two- or four-year college?

“It depends at what level and what subject,” says Isabelle Frank, dean of Fordham College of Liberal Studies. “In general, fully online degrees are not valued as highly as degrees from brick-and-mortar institutions. This is because online-only universities do not have the faculty quality and interaction that occurs with full-time faculty and secure positions.”

She says that Fordham has online master programs and some online courses, but the model is “that of a small seminar style class with a lot of faculty feedback and involvement.”

Just like a physical college, a quality online education depends on the institution.

For example, students at Arizona State University’s W. P. Carey School of Business take online classes and communicate with other students around the world—something students 25 years ago couldn’t have dreamed of doing.

“This affords the opportunity to learn leadership, team-building and managerial skills by solving problems and coordinating efforts for projects through the process of establishing real-time meetings, coordinating time zones and dealing with potential language issues,” Sher Downing, executive director of online academic services at the W. P. Carey School of Business at Arizona State University, said. “This value cannot be mirrored as easily in a traditional classroom, and for many companies with offices located around the world, this is a valuable skill, when the workforce is required to handle these types of situations.”

Downing said that students can save money by taking online classes because they no longer have to commute, live on or near a campus or relocate.

The millennials surveyed by Northeastern University are keen to take online courses. In fact, nine in 10 said online classes should be used as a tool and mixed with other teaching methods. The poll also found that students want flex­i­bility, which is exactly what online colleges offer.

Employers may not yet see an online degree in the same light as a traditional university but that is likely to change in the near future. It may just be that millennials, who don’t want to go in debt for an education like some of their parents did, are just a bit ahead of educators and employers.

Related Stories on TakePart:

• Top Universities Want You to Take Free Online Classes in Your Pajamas

• Military Gives ‘F’ to Online Diplomas

• 2012 List: The Most Expensive Colleges in America

---

Suzi Parker is an Arkansas-based political and cultural journalist whose work frequently appears in The Washington Post and The Christian Science Monitor. She is the author of two books. @SuziParker | TakePart.com 

Linux/Open Source News Headlines – Yahoo! News

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Mario Lopez Is Spontaneous, Romantic, Says New Bride Courtney Mazza

By Dahvi Shira and Patrick Gomez

12/08/2012 at 03:30 PM EST

Courtney Mazza, Mario Lopez and their daughter, Gia

FameFlynet

There's no lack of spice in the lives of newlyweds Mario and Courtney Lopez.

"The most romantic thing about Mario is his spontaneity," Courtney told PEOPLE on Friday, just under a week after the two tied the knot in Mexico. "He's so spontaneous and it's just fun to be with somebody [like that]."

Mario, 39, explains that he keeps the romance fresh by "taking off for a quick trip or having little quickies here and there," adding, "Kids and jobs and everything else gets in the way, but you can't forget about each other."

As for Courtney, she turns the heat up in the kitchen.

"The most romantic thing about my wife is the meals she cooks when I come home," Mario said, before Courtney added with a laugh, "My grandma did tell me to cook for him in nothing but an apron and stilettos."

When it came to celebrating the couple's Dec. 1 nuptials – which were captured on camera for TLC's Mario and Courtney's Wedding Fiesta, airing on Saturday – being together was the best present they could have received.

"To be honest, we didn't have a wedding registry and didn't ask for any gifts," Mario recently said. "We asked for people to donate to a charity. That was important to us."

Adds the X Factor host, "We had so many people say that was the best wedding ever. Oh my god, it was so much fun."

With their wedding day under their belt, the pair has another celebration nearing.

The couple teamed up with Nivea this year to help kick off the "Kiss of the Year" contest on Facebook, and they will head to Times Square in New York City for New Year's Eve to be with the winning pair, who can be voted on through Dec. 14.

"There were over 1,400 entries," Courtney says. "All of the stories were amazing. It was so hard to narrow it down to just three couples."

Their holiday destination has a special significance.

"We love New York," Mario says. "It's where we met and fell in love."

As for their first kiss, Courtney says with a laugh, "Oh, yeah, I remember it. He pounced me!"

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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Dow, S&P rise on jobs, but Apple bites Nasdaq again

NEW YORK (Reuters) - The Dow and the S&P 500 advanced modestly on Friday, though another sell-off in Apple depressed technology shares and kept the Nasdaq negative, overshadowing a sharply better-than-expected jobs report.

Trading was light, continuing the week's trend of slight moves and anemic volume. The S&P 500 ended up a mere 0.1 percent for the week, following several volatile sessions that repeatedly pushed it in and out of positive territory. The benchmark index is just 3.8 percent below the 2012 intraday high of 1,474.51 reached in mid-September.

Equities opened higher after the non-farm payrolls report, which showed 146,000 jobs added in November, far more than had been expected, while the U.S. unemployment rate dropped to 7.7 percent. A sour reading on consumer sentiment caused an erosion of those gains, though markets rebounded going into the close.

The Thomson Reuters/University of Michigan's consumer sentiment index for early December fell to its lowest level since August. Sentiment fell on growing concerns over the "fiscal cliff" debates in Washington, which have been a major factor preventing broader moves as well.

"We're not as concerned as we were a few months ago because of improvement like you can see in the employment number, but there's such a wild card over the cliff," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland, Ohio. "There are such concerns about what could happen that markets will be overhung until a resolution is more certain."

One of the biggest drags on the Nasdaq was Apple which fell 2.6 percent to $533.25, extending its losses for the week to 8.9 percent. This was the worst week for the stock since May 2010, and with the losses, the stock of the largest U.S. company by market value is now down 24.4 percent from an all-time intraday high reached in late September.

In Friday's session, Apple's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38. The weakness drove the S&P information technology sector <.gspt> lower. The index fell 0.6 percent and was the weakest of the S&P 500's 10 major industry sectors on Friday.

The Dow Jones industrial average <.dji> gained 81.09 points, or 0.62 percent, to 13,155.13 at the close. The Standard & Poor's 500 Index <.spx> rose 4.13 points, or 0.29 percent, to 1,418.07. The Nasdaq Composite Index <.ixic> slipped 11.23 points, or 0.38 percent, to close at 2,978.04.

For the week, the Nasdaq is down 1.1 percent, hurt largely by the decline in Apple.

The Dow, which does not count Apple as a component, rose 1 percent for its third straight week of gains. The S&P 500 is also up for three straight weeks, rising 4.3 percent over that period.

The equity market has regained most of the ground it lost following President Barack Obama's re-election as markets turned their focus to the coming "fiscal cliff." Market response to the macroeconomic data remained muted as negotiations continued to command investor attention.

U.S. House Speaker John Boehner said that talks this week with President Barack Obama produced no progress, and he renewed his demand that the president provide a new offer to avert the series of tax increases and spending cuts that are likely to hurt economic demand in 2013.

Material shares <.gspm> were the strongest performers of the day, with that index up 0.8 percent. Freeport-McMoRan Copper & Gold Co gained 2.9 percent to $31.70 while Dow Chemical added 2.2 percent to $30.30.

Amarin Corp fell 18.9 percent to $9.69 after the biopharmaceutical company raised $100 million in financing to help it launch its heart drug, Vascepa, but disappointed investors, who had hoped for a sale or partnership.

CombiMatrix Corp shares more than quadrupled, soaring 336.6 percent to $8.60 after the company said two studies published in a medical journal favored technology it uses for prenatal diagnosis of genetic abnormalities over traditional technologies.

About 52 percent of shares listed on the New York Stock Exchange closed higher while slightly more than 50 percent of Nasdaq-listed stocks closed lower.

Volume was light, with about 5.47 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.48 billion shares.

(Editing by Jan Paschal)

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Protesters surge around Egypt's presidential palace

CAIRO (Reuters) - Tens of thousands of Egyptian protesters surged around the presidential palace on Friday and the opposition rejected President Mohamed Mursi's call for dialogue to end a crisis that has polarized the nation and sparked deadly clashes.

The Islamist leader's deputy said he could delay a December 15 referendum on a constitution that liberals opposed, although the concession only partly meets a list of opposition demands that include scrapping a decree that expanded Mursi's powers.

"The people want the downfall of the regime" and "Leave, leave," crowds chanted after bursting through barbed wire barricades and climbing on tanks guarding the palace of Egypt's first freely elected president.

Their slogans echoed those used in a popular revolt that toppled Mursi's predecessor Hosni Mubarak in February 2011.

Vice President Mahmoud Mekky said in a statement sent to local media that the president was prepared to postpone the referendum if that could be done without legal challenge.

The dialogue meeting was expected to go ahead on Saturday in the absence of most opposition factions. "Tomorrow everything will be on the table," a presidential source said of the talks.

The opposition has demanded that Mursi rescind a November 22 decree giving himself wide powers and delay the vote set for December 15 on a constitution drafted by an Islamist-led assembly which they say fails to meet the aspirations of all Egyptians.

The state news agency reported that the election committee had postponed the start of voting for Egyptians abroad until Wednesday, instead of Saturday as planned. It did not say whether this would affect the timing of voting in Egypt.

Ahmed Said, leader of the liberal Free Egyptians Party, told Reuters that delaying expatriate voting was made to seem like a concession but would not change the opposition's stance.

He said the core opposition demand was to freeze Mursi's decree and "to reconsider the formation and structure of the constituent assembly", not simply to postpone the referendum.

The opposition organized marches converging on the palace which elite Republican Guard units had ringed with tanks and barbed wire on Thursday after violence between supporters and opponents of Mursi killed seven people and wounded 350.

Islamists, who had obeyed a military order for demonstrators to leave the palace environs, held funerals on Friday at Cairo's al-Azhar mosque for six Mursi partisans who were among the dead. "With our blood and souls, we sacrifice to Islam," they chanted.

"ARM-TWISTING"

In a speech late on Thursday, Mursi had refused to retract his November 22 decree or cancel the referendum on the constitution, but offered talks on the way forward after the referendum.

The National Salvation Front, the main opposition coalition, said it would not join the dialogue. The Front's coordinator, Mohamed ElBaradei, a Nobel peace laureate, dismissed the offer as "arm-twisting and imposition of a fait accompli".

Murad Ali, spokesman of the Brotherhood's Freedom and Justice Party (FJP), said opposition reactions were sad: "What exit to this crisis do they have other than dialogue?" he asked.

Mursi's decree giving himself extra powers sparked the worst political crisis since he took office in June and set off renewed unrest that is dimming Egypt's hopes of stability and economic recovery after nearly two years of turmoil following the overthrow of Mubarak, a military-backed strongman.

The turmoil has exposed contrasting visions for Egypt, one held by Islamists, who were suppressed for decades by the army, and another by their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms.

Caught in the middle are many of Egypt's 83 million people who are desperate for an end to political turbulence threatening their precarious livelihoods in an economy under severe strain.

"We are so tired, by God," said Mohamed Ali, a laborer. "I did not vote for Mursi nor anyone else. I only care about bringing food to my family, but I haven't had work for a week."

ECONOMIC PAIN

A long political standoff will make it harder for Mursi's government to tackle the crushing budget deficit and stave off a balance of payments crisis. Austerity measures, especially cuts in costly fuel subsidies, seem inevitable to meet the terms of a $4.8-billion IMF loan that Egypt hopes to clinch this month.

U.S. President Barack Obama told Mursi on Thursday of his "deep concern" about casualties in this week's clashes and said "dialogue should occur without preconditions".

The upheaval in the most populous Arab nation worries the United States, which has given billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

The conflict between Islamists and opponents who each believe the other is twisting the democratic rules to thwart them has poisoned the political atmosphere in Egypt.

The Muslim Brotherhood's spokesman, Mahmoud Ghozlan, told Reuters that if the opposition shunned the dialogue "it shows that their intention is to remove Mursi from the presidency and not to cancel the decree or the constitution as they claim".

Ayman Mohamed, 29, a protester at the palace, said Mursi should scrap the draft constitution and heed popular demands.

"He is the president of the republic. He can't just work for the Muslim Brotherhood," Mohamed said of the eight-decade-old Islamist movement that propelled Mursi from obscurity to power.

(Additional reporting by Omar Fahmy; Writing by Edmund Blair and Alistair Lyon; Editing by Giles Elgood)

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iPad mini fails to draw crowds for China launch

Either Apple’s (AAPL) reservation-only system works better than anyone could have expected, or consumers in China have little interest in the company’s new iPad mini. Apple’s tiny tablet launched on schedule on Friday but according to IDG News Service, the turnout for Apple’s new slate was minimal. At Apple’s new flagship store in the well-trafficked Wangfujing district in Beijing, for example, turnout was “nearly nonexistent” according to the report, with no lines forming at all on Friday.

We’ve seen Apple rack up big numbers despite small launch-day turnouts in the past, but Apple’s reservation system does not appear to be responsible for the seemingly slow launch — according to IDG, many consumers who did turn up at Apple stores looking to purchase an iPad mini were unable to do so because they weren’t even aware that the reservation-only system existed.

Apple’s iPhone 5, which will presumably draw more of a crowd, launches in China next Friday.

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Gadgets News Headlines – Yahoo! News

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Check Out Sophia Bush's New Bangs!

Stylewatch
Style News Now

12/07/2012 at 12:30 PM ET

Splash News Online; Inset: FilmMagic

Sophia Bush wants to end the year with a bang — literally!

The actress showed off brand new fringe at the opening of a Joe’s Jeans store in Hollywood on Thursday night.

Instead of playing it safe with a wispy, feathery look, Bush went for a dramatic blunt style that falls just above her eyes —  similar to what Beyoncé has. (Maybe Bush was inspired by the pop superstar?)

Since Bush is yet another celeb to cut bangs in recent weeks, we have to wonder who will be next to try the trend. Tell us: Do you like Bush better with or without bangs? And what celeb do you think should get bangs next?

–Jennifer Cress

PHOTOS: SHOP EDITOR-APPROVED HAIR PRODUCTS!

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

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Johnson can be reached at https://twitter.com/GeneAPseattle

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Apple's gains lift tech in quiet day before jobs data

NEW YORK (Reuters) - Stocks closed modestly higher on Thursday, a day ahead of the key monthly jobs report, as a rebound in shares of Apple helped boost technology shares.

Traders were reluctant to bet heavily a day before the Friday release of the November employment report. Just 5.62 billion shares changed hands on U.S. exchanges, shy of the 6.48 billion daily average this year.

Investors are also keeping watch on the "fiscal cliff" negotiations in Washington to see if lawmakers can reach a deal to avoid a series of spending cuts and tax hikes beginning in January.

"Right now we're just drifting, waiting to learn about the cliff and jobs," said Donald Selkin, chief market strategist at National Securities in New York. "The only stabilizing factor is that Apple is higher again, which is lending some support to the broader market."

Apple climbed 1.6 percent to $547.24, reversing losses incurred at the open. The stock was coming off its biggest one-day drop in four years on Wednesday, which occurred on concerns about higher capital gains taxes in 2013 and the company's tablet computer market share.

The S&P technology index <.gspt> was the best performing of the S&P 500's 10 major sectors, gaining 0.8 percent. Semiconductor stocks rallied a day after Broadcom forecast fourth-quarter revenue at the high end of its target range. Broadcom's stock rose 3.2 percent to $33.36 while the PHLX semiconductor index <.sox> rose 1.1 percent.

The Dow Jones industrial average <.dji> rose 39.55 points, or 0.30 percent, to 13,074.04 at the close. The Standard & Poor's 500 Index <.spx> added 4.66 points, or 0.33 percent, to 1,413.94. The Nasdaq Composite Index <.ixic> gained 15.57 points, or 0.52 percent, to close at 2,989.27.

Monthly payroll numbers, which will be released by the Labor Department before the market opens on Friday, are expected to show a sharp slowdown in jobs growth, though that is largely due to the impact of Superstorm Sandy, which devastated the U.S. Northeast in late October and early November. The unemployment rate is seen holding steady at 7.9 percent.

Broader moves were limited, however, as traders focused on the "fiscal cliff" debate. About three weeks remain before higher tax rates would go into effect, which economists worry would dampen economic growth. Legislators are trying to come up with a deal to avoid some of the negative effects on the economy while still reducing the U.S. budget deficit.

While Republican leaders in the U.S. House of Representatives insist that raising tax rates on the rich is not negotiable, some GOP lawmakers now see it as inevitable to avoid the fiscal cliff.

Without action from Congress, tax cuts on capital gains and dividends will expire at the end of 2012. This has given investors a reason to sell certain stocks such as Apple that have done extremely well in recent years.

The CBOE Volatility Index <.vix>, known as the VIX, rose 0.7 percent, "a reflection of the anxiety people have about the jobs report and skepticism over the cliff," Selkin said.

An S&P index of consumer discretionary shares <.gspd> gained 0.6 percent, lifted by Starbucks Corp shares' advance of 5.7 percent to $53.70 after Baird upgraded the stock to "outperform."

H&R Block climbed 5.1 percent to $18.26 after the company reported a quarterly loss that was narrower than expected.

Sirius XM Radio shares rose 0.7 percent to $2.79 after its board approved a $2 billion stock repurchase and declared a special dividend that gave a big payout to its largest shareholder, Liberty Media . Shares of Liberty climbed 2.7 percent to $109.24.

Garmin shares jumped 5.7 percent to $41.99 after Standard & Poor's said it would add the navigation device maker to the S&P 500 index. Garmin will replace R.R. Donnelley & Sons after the close of trading on December 11.

Slightly more than 50 percent of the stocks traded on the New York Stock Exchange closed higher, while the number of advancing and declining stocks was about even on the Nasdaq.

(Editing by Jan Paschal)

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Military halts clashes as political crisis grips Egypt

CAIRO (Reuters) - Egypt's Islamist president, Mohamed Mursi, called on Thursday for a national dialogue after deadly clashes around his palace, where demonstrators responded by demanding the "downfall of the regime", using the chants that brought down Hosni Mubarak.

Mursi said in a televised speech that plans for a referendum on a new constitution on December 15 were on track, proposing a meeting on Saturday with political leaders, "revolutionary youth" and legal figures to discuss the way forward after that.

The Republican Guard intervened on Thursday to halt violence outside the palace, where seven people were killed overnight in clashes between supporters and opponents of Mursi.

Members of the main opposition coalition, the National Salvation Front, said they were assessing the offer of talks to end a crisis sparked by Mursi's November 22 decree awarding himself wide powers and protecting his decisions from judicial review.

The opposition has previously demanded that Mursi scrap his decree, postpone the referendum and redraft the constitution.

As well as drawing up a political roadmap, Mursi said the talks would aim to resolve the fate of the upper house of parliament after the Islamist-dominated lower house was dissolved in June, the election law and other issues.

"I call for a full, productive dialogue with all figures and heads of parties, revolutionary youth and senior legal figures to meet this Saturday," Mursi declared, adding that the meeting would be at his official palace.

Several thousand opposition protesters near the palace waved their shoes in derision after his speech and shouted "Killer, killer" and "We won't go, he will go" - another of the slogans used against Mubarak in last year's revolt.

The Cairo headquarters of the Muslim Brotherhood, the group that propelled Mursi to victory in a June election, was set ablaze. Other offices of its political party were attacked.

This week's violence reflects the widening rifts in the most populous Arab nation, where contrasting visions of Islamists and their liberal rivals have complicated a struggle to embed democracy after Mubarak's 30 years of one-man rule.

TENTATIVE CONCESSION

The United States, worried about the stability of an Arab partner which has a peace deal with Israel and which receives $1.3 billion a year in U.S. military aid, had urged dialogue.

Mursi said he did not insist on keeping his actions shielded from legal challenge, adding that his entire decree would lapse after the constitutional referendum, regardless of its result.

He said a new constituent assembly would be formed to redraft the constitution if Egyptians rejected the one written in the past six months by an assembly dominated by Islamists.

The Republican Guard, an elite unit whose duties include protecting the presidential palace, had ordered rival demonstrators to leave by mid-afternoon. Mursi supporters withdrew, but opposition protesters remained, kept away by a barbed wire barricade guarded by tanks.

By evening their numbers had swelled to several thousand.

The military played a big role in removing Mubarak during last year's popular revolt, taking over to manage a transitional period, but had stayed out of the latest crisis.

Thousands of supporters and opponents of Mursi had fought well into Thursday's early hours, using rocks, petrol bombs and guns. Officials said 350 were wounded in the violence. Six of the dead were Mursi supporters, the Muslim Brotherhood said.

Prosecutors investigating the unrest said Brotherhood members had detained 49 wounded protesters and were refusing to release them to the authorities, the state news agency said. The Brotherhood denied this, saying all "thugs" detained by its members had been handed over to police or the Republican Guard.

"MILITIA REGIME"

Before Mursi's speech, opposition groups had called for protests after Friday prayers aimed at "the downfall of the militia regime", a dig at what they see as the Brotherhood's organized street muscle.

A communique from a leftist group urged protesters to gather at mosques and squares across Egypt, and to stage marches in Cairo and its sister city Giza, converging on the presidential palace. "Egyptian blood is a red line," the communique said.

Hardline Islamist Salafis summoned their supporters to protest against what they consider biased coverage of the crisis by some private Egyptian satellite television channels.

Outside Cairo, supporters and opponents of Mursi clashed in his home town of Zagazig in the Nile Delta, state TV reported.

Egypt plunged into renewed turmoil after Mursi issued his November 22 decree and an Islamist-dominated assembly hastily approved a new constitution to go to next week's referendum.

Since then six of the president's advisers have resigned. Essam al-Amir, the director of state television, quit on Thursday, as did a Christian official working at the presidency.

The Brotherhood's supreme guide, Mohamed Badie, called for unity, saying divisions "only serve the nation's enemies".

Mursi's opponents accuse him of seeking to create a new "dictatorship". The president says his actions were necessary to prevent courts still full of judges appointed by Mubarak from derailing a constitution vital for Egypt's political transition.

U.N. Human Rights Commissioner Navi Pillay urged the Egyptian authorities to protect peaceful protesters and prosecute anyone inciting violence, including politicians.

The Islamists, who have won presidential and parliamentary elections since Mubarak was overthrown, are confident they can win the referendum and the parliamentary election to follow.

As well as relying on his Brotherhood power base, Mursi may also tap into a popular yearning for stability and economic revival after almost two years of political turmoil.

Egypt's pound hit an eight-year low on Thursday, after previously firming on hopes that a $4.8 billion IMF loan would stabilize the economy. The stock market fell 4.6 percent.

(Additional reporting by Tom Perry, Edmund Blair and Marwa Awad; Writing by Alistair Lyon)

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Facebook might buy Microsoft’s Atlas Ad platform to compete with Google

Is Facebook (FB) preparing to compete with Google (GOOG) in online advertising? According to AllThingsD and BusinessInsider’s sources Facebook might be taking steps to build its own advertising network for online websites. AllThingsD says that rather than build a new advertising network from scratch, Facebook could just buy Microsoft’s (MSFT) Atlas Solutions platform “that already delivers billions of ad impressions a day.”

BusinessInsider reports that Facebook will reportedly pay a lower price than the $ 6 billion that Microsoft paid for aQuantive in 2007 that included Atlas Solutions. It’s estimated that Atlas is worth more than $ 30 million — a small price to pay to compete with Google’s DoubleClick ad network.

So why is Facebook interested in advertising now? Well, it’s got over 1 billion active users with emails, phone numbers, and unprecedented amounts of “likes.” As BusinessInsider puts it, Facebook has so much data it could “tell marketers whether or not a Facebook user saw, on Facebook.com, an ad for a product before going to the store and buying it.”

Get more from BGR.com: Follow us on Twitter, Facebook

Social Media News Headlines – Yahoo! News

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Randy Travis Has 'Given Up Alcohol,' Will Hit Awards Show Stage

12/06/2012 at 04:30 PM EST

Randy Travis is easing back into the spotlight four months after he was arrested while nude and allegedly drunk and belligerent on a Texas highway.

The country star, 53, is performing Friday night at the American Giving Awards in Pasadena for a show airing Saturday night on NBC. This follows his November appearance on CMT Crossroads with the Avett Brothers.

"Randy is doing great. Life is good," says his lawyer Larry Friedman. "He's given up drinking alcohol. He's drinking eight glasses of water a day or more. He's on a strict exercise regimen. … He's in the best shape he's ever been in in his life."

The AGAs, hosted by Joel McHale, is a celebrity tribute to local heroes, with five charities sharing $2 million in grants. Glenn Close will receive the AGA Leadership Award.

"It's an honor being chosen as a performer for this year's American Giving Awards," Travis says in a statement. "The act of giving back to the community is priceless and something that I truly believe in."

While Travis's case is pending, he remains busy in the studio, according to his lawyer.

"He's got 31 new songs," says Friedman. "He did it at a recording studio in Texas. He used his own band. These are all old-time favorites by Hank Williams, Willie Nelson, Merle Haggard, these are the songs that he grew up with that he loved."

• Reporting by KEVEN O'DONNELL

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Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

___(equals)

Johnson can be reached at https://twitter.com/GeneAPseattle

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Dow, S&P end higher, but Apple sinks Nasdaq in wild day

NEW YORK (Reuters) - A volatile trading session ended with stocks mostly higher on Wednesday, even as Apple, the most valuable company in the United States, suffered its worst day of losses in almost four years.

In a strange occurrence, Apple accounted for the entirety of the Nasdaq 100's <.ndx> fall of 1.1 percent, while the Dow industrials - which do not include Apple as a component - enjoyed the best day since November 28.

With the drop, Apple shed nearly $35 billion in market capitalization, its biggest one-day market-cap loss ever. The company's market value, or market capitalization, now stands at $506.85 billion.

"Today's move is because of index weightings, with the Nasdaq down because of Apple's decline," said Rex Macey, chief investment officer of Wilmington Trust in Atlanta. "The S&P is up because Apple isn't as big a weight in that index, and the Dow is up even more because it isn't there at all."

The broad market seesawed, with the S&P 500 dropping into negative territory before it rebounded off the 1,400 level, seen as a key support point over the past two weeks. Investors cited comments from President Barack Obama suggesting a potential near-term resolution to the "fiscal cliff" wrangling in Washington as a catalyst for the rebound.

Shares of The Travelers Cos Inc rose 4.9 percent to $74. The stock ranked as the Dow's top percentage gainer after the insurance company said it intended to resume stock buybacks it had temporarily suspended while it assessed its exposure to Superstorm Sandy. The company also said a preliminary estimate of net losses from Sandy was about $650 million after tax.

The Dow Jones industrial average <.dji> rose 82.71 points, or 0.64 percent, to 13,034.49 at the close. The Standard & Poor's 500 Index <.spx> gained 2.23 points, or 0.16 percent, to 1,409.28. But the Nasdaq Composite Index <.ixic> fell 22.99 points, or 0.77 percent, to end at 2,973.70.

Apple, the largest U.S. company by market capitalization and a big weight in both the S&P 500 and the Nasdaq, fell 6.4 percent to $538.79. Apple is down more than 20 percent from an all-time high reached in late September, putting the stock into bear market territory.

Banking shares were led higher by a 6.3 percent jump in Citigroup to $36.46 after the company said it would cut 4 percent of its workforce. [ID:nL1E8N52IQ] The S&P financial sector index <.gspf> climbed 1.3 percent, and Bank of America hit a 52-week high of $10.55 before pulling back slightly. The stock, a Dow component, ended at $10.46, up 5.7 percent for the day.

Still, Apple struggled throughout the session. Market participants cited a host of reasons for the drop in the iPad maker's stock, including a consultant's report about the company losing share in the tablet market and reports that margin requirements had been raised by at least one clearing firm, as well as year-end tax selling ahead of a possible rise in capital-gains tax rates next year.

On the Washington front, Obama told the Business Roundtable, a group of chief executives, on Wednesday that a fiscal cliff deal was possible "in about a week" if Republicans acknowledged the need to raise taxes on the wealthiest Americans.

Equities have struggled to gain ground recently because of concerns over the fiscal cliff - a series of mandatory spending cuts and tax increases effective in early January that could push the U.S. economy into recession next year. Recently equities have moved on any whiffs of sentiment from Washington in headlines about negotiations.

"Obama's comments generated a lot of optimism, but to the extent the market believes them, that's how much we're setting ourselves up for a decline if that deadline passes with no progress," said Macey, who helps oversee about $20 billion in assets.

In an interview on CNBC after the market closed, U.S. Treasury Secretary Tim Geithner said that uncertainty over the fiscal cliff was standing in the way of stronger economic growth, and that there was no prospect for an agreement if tax rates didn't rise on the wealthiest taxpayers.

The stock of Freeport-McMoRan Copper & Gold Inc fell 16 percent to $32.17 and ranked as the S&P 500's biggest percentage decliner. The company said it was acquiring Plains Exploration & Production Co and McMoRan Exploration Co in two separate deals for $9 billion in cash and stock in a major expansion into energy.

McMoRan Exploration soared 87 percent to $15.82 and Plains surged 23.4 percent to $44.50.

After the closing bell, Standard & Poor's said it cut Greece's sovereign long-term foreign currency rating to "selective default" from its already low "C" rating. Last week, the country and its international lenders reached a deal to lower its debt burden through a debt buyback.

About half of the stocks traded on the New York Stock Exchange closed in positive territory, while about 54 percent of Nasdaq-listed shares ended lower.

Volume was higher than it has been in recent sessions, with about 7.01 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, above the daily average so far this year of about 6.48 billion shares.

(Editing by Jan Paschal)

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Clashes erupt in Egypt despite proposal to end crisis

CAIRO (Reuters) - Islamists fought protesters outside the Egyptian president's palace on Wednesday, while inside the building his deputy proposed a way to end a crisis over a draft constitution that has split the most populous Arab nation.

Stones and petrol bombs flew between opposition protesters and supporters of President Mohamed Mursi, and the Interior Ministry said 32 people had been arrested and three police vehicles destroyed.

Two Islamists were hit in the legs by what their friends said were bullets fired during clashes in streets around the compound in northern Cairo. One of them was bleeding heavily. And a leftist group said Islamists had cut off the ear of one of its members.

Medical sources said 33 people had been wounded, but despite reports of fatalities, the Health Ministry said there had been no deaths.

Riot police were deployed between the two sides in Cairo to try to stop confrontations that flared after dark despite an attempt by Vice President Mahmoud Mekky to ease the crisis.

Mekky said amendments to disputed articles in the draft constitution could be agreed with the opposition. A written agreement could then be submitted to the next parliament, to be elected after a referendum on the constitution on December 15.

"There must be consensus," he told a news conference, saying opposition demands had to be respected to reach a solution.

Prime Minister Hisham Kandil called for calm to "give the opportunity" for efforts underway to start a national dialogue.

Facing the gravest crisis of his six-month-old tenure, Mursi has shown no sign of buckling to the protests, confident that Islamists can win the referendum and a parliamentary election to follow.

Many Egyptians yearn for an end to political upheaval that began with the overthrow of Hosni Mubarak in February 2011 and which has hurt the economy as investors and tourists have fled.

Protests spread to other cities, and offices of the Brotherhood's political party in Ismailia and Suez were torched.

Egypt's opposition coalition blamed Mursi for the violence and said it was ready for dialogue if the Islamist leader scrapped a decree he issued on November 22 that gave him wide powers and shielded his decisions from judicial review.

DIALOGUE

"We hold President Mursi and his government completely responsible for the violence happening in Egypt today," opposition coordinator Mohamed ElBaradei told a news conference.

"We are ready for dialogue if the constitutional decree is cancelled ... and the referendum on this constitution is postponed," he said of the document written by an Islamist-led assembly that the opposition says ignores its concerns.

But liberals, leftists, Christians, ex-Mubarak followers and others opposed to Mursi have yet to generate a mass movement or a grassroots base to challenge the Brotherhood, which has come out on top in two elections since Mubarak's overthrow.

"Today what is happening in the Egyptian street, polarisation and division, is something that could and is actually drawing us to violence and could draw us to something worse," said ElBaradei, the former head of the U.N. nuclear watchdog.

Opposition leaders have previously urged Mursi to retract the November 22 decree, defer the referendum and agree to revise the constitution, but have not echoed calls from street protesters for his overthrow and the "downfall of the regime".

Mursi has said his decree was needed to prevent courts still full of judges appointed by ousted strongman Hosni Mubarak from derailing a constitution vital for Egypt's political transition.

Earlier on Wednesday Islamist supporters of Mursi tore down tents erected outside the presidential palace by leftist foes who had begun a sit-in there.

"They hit us and destroyed our tents. Are you happy, Mursi? Aren't we Egyptians too?" asked protester Haitham Ahmed.

Mohamed Mohy, a pro-Mursi demonstrator who was filming the scene, said: "We are here to support our president and his decisions and save our country from traitors and agents."

Mekky said street mobilisation by both sides posed a "real danger" to Egypt. "If we do not put a stop to this phenomenon right away ... where are we headed? We must calm down."

CALLS FOR RESTRAINT

U.S. Secretary of State Hillary Clinton weighed into Egypt's political debate, saying dialogue was urgently needed on the new constitution, which should "respect the rights of all citizens".

Clinton and Mursi worked together last month to broker a truce between Israel and Hamas Islamists in the Gaza Strip.

Washington is worried about rising Islamist power in Egypt, a staunch U.S. security partner under Mubarak, who preserved the U.S.-brokered peace treaty Cairo signed with Israel in 1979.

British Foreign Secretary William Hague called for restraint on all sides. He said Egypt's authorities had to make progress on the transition in an "inclusive manner" and urged dialogue.

The Muslim Brotherhood had summoned supporters to an open-ended demonstration at the presidential palace, a day after about 10,000 opposition protesters had encircled it for what organizers dubbed a "last warning" to Mursi.

State institutions, with the partial exception of the judiciary, have mostly fallen in behind Mursi.

The army, the muscle behind all previous Egyptian presidents in the republic's six-decade history, has gone back to barracks, having apparently lost its appetite to intervene in politics.

In August Mursi sacked Mubarak-era army commander and defense minister Mohamed Hussein Tantawi and removed the sweeping powers that the military council, which took over after Mubarak fell, had grabbed two months earlier.

Investors have seized on hopes that Egypt's turbulent transition, which has buffeted the economy for two years, may soon head for calmer waters, sending stocks 1.6 percent higher after a 3.5 percent rally on Tuesday.

Egypt has turned to the IMF for a $4.8 billion loan after the depletion of its foreign currency reserves. The government said on Wednesday the process was on track and its request would go to the IMF board as expected.

The board is due to review the facility on December 19.

Elijah Zarwan, a fellow with the European Council on Foreign Relations, said that if Egypt was to find a compromise solution to its crisis, it would not be through slogans and blows.

"It will be through quiet negotiation, not through dueling press conferences, street brawls, or civil strife," he said.

(Additional reporting by Tom Perry and Tamim Elyan; Writing by Alistair Lyon and Edmund Blair; Editing by Andrew Roche and Will Waterman)

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25 top-rated Facebook games from 2012

Games can be both a welcome and an annoying diversion on Facebook, the world’s most popular online social network. This year, Facebook crossed a big milestone — reaching 1 billion active users. Game companies such as “FarmVille” creator Zynga Inc. and Rovio Entertainment Ltd. of “Angry Birds” fame seek to tap into that vast base of users to gain more players for their games.

This week, Facebook Inc. issued a list of the 25 top-rated games that launched on Facebook in 2012. The company says the rankings are based on user ratings and engagement with the games. It’s the same methodology that Facebook uses to rank apps in its App Center.

Some of the games are played on Facebook’s website, while others are only on Apple Inc.‘s iOS or Google Inc.‘s Android devices using Facebook’s app.

Here’s the list:

1. “SongPop” (by FreshPlanet, on Facebook.com, iOS and Android)

2. “Dragon City” (by Social Point, on Facebook.com)

3. “Bike Race” (by Top Free Games, on iOS)

4. “Subway Surfers” (by Kiloo, on iOS and Android)

5. “Angry Birds Friends (by Rovio, on Facebook.com)

6. “FarmVille 2″ (by Zynga, on Facebook.com)

7. “Scramble with Friends” (by Zynga, on iOS)

8. “Clash of Clans” (by Supercell, on iOS)

9. “Marvel: Avengers Alliance” (by Playdom, on Facebook.com)

10. “Draw Something” (by Zynga, on iOS and Android)

11. “Hay Day” (by Supercell, on iOS)

12. “Baseball Heroes” (by Syntasia, on Facebook.com)

13. “ChefVille” (by Zynga, on Facebook.com)

14. “CSR Racing” (by NaturalMotion Games, on iOS)

15. “Candy Crush Saga” (by King.com, on Facebook.com and iOS)

16. “Matching With Friends” (by Zynga, on Facebook.com)

17. “Legend Online” (by Oasis Games, on Facebook.com)

18. “Jurassic Park Builder” (by Ludia, on Facebook.com)

19. “Dungeon Rampage” (by Rebel Entertainment, on Facebook.com)

20. “Pockie Ninja II Social” (by NGames Ltd., on Facebook.com)

21. “Jetpack Joyride” (by Halfbrick, on Facebook.com)

22. “Social Empires” (by Social Point, on Facebook.com and iOS)

23. “Bil ve Fethet” (by Peak Games, on Facebook.com)

24. “Ruby Blast Adventures” (by Zynga, on Facebook.com and iOS)

25. “Pyramid Solitaire Saga” (by King.com, on Facebook.com)

Social Media News Headlines – Yahoo! News

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Homeless Man Charged with Subway Killing

By Sarah Michaud

12/05/2012 at 04:30 PM EST

Suspect in N.Y.C. subway killing

A homeless man has been arrested and charged with murder for allegedly pushing a man in front of a New York subway train.

Naeem Davis, 30, implicated himself in the crime after being taken into custody and questioned by the New York Police Department on Tuesday, police spokesman Paul J. Browne tells the New York Times.

The suspect's name and the charge were made public Wednesday after witnesses who saw Davis shove Ki-Suck Han, 58, in front of the train Monday afternoon identified him in a lineup, according to police.

Han attempted to climb back up onto the platform as the train approached, a moment captured by freelance photographer R. Umar Abbasi.

The image covered the New York Post Tuesday, sparking debate over journalistic ethics and, writes the Times, raising "questions about how bystanders in the city can – and perhaps, should – behave in moments of crisis."

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Longer tamoxifen use cuts breast cancer deaths

Breast cancer patients taking the drug tamoxifen can cut their chances of having the disease come back or kill them if they stay on the pills for 10 years instead of five years as doctors recommend now, a major study finds.

The results could change treatment, especially for younger women. The findings are a surprise because earlier research suggested that taking the hormone-blocking drug for longer than five years didn't help and might even be harmful.

In the new study, researchers found that women who took tamoxifen for 10 years lowered their risk of a recurrence by 25 percent and of dying of breast cancer by 29 percent compared to those who took the pills for just five years.

In absolute terms, continuing on tamoxifen kept three additional women out of every 100 from dying of breast cancer within five to 14 years from when their disease was diagnosed. When added to the benefit from the first five years of use, a decade of tamoxifen can cut breast cancer mortality in half during the second decade after diagnosis, researchers estimate.

Some women balk at taking a preventive drug for so long, but for those at high risk of a recurrence, "this will be a convincer that they should continue," said Dr. Peter Ravdin, director of the breast cancer program at the UT Health Science Center in San Antonio.

He reviewed results of the study, which was being presented Wednesday at a breast cancer conference in San Antonio and published by the British medical journal Lancet.

"The result of this trial will have a major, immediate impact on premenopausal women," Ravdin said.

About 50,000 of the roughly 230,000 new cases of breast cancer in the United States each year occur in women before menopause. Most breast cancers are fueled by estrogen, and hormone blockers are known to cut the risk of recurrence in such cases.

Tamoxifen long was the top choice, but newer drugs called aromatase inhibitors — sold as Arimidex, Femara, Aromasin and in generic form — do the job with less risk of causing uterine cancer and other problems.

But the newer drugs don't work well before menopause. Even some women past menopause choose tamoxifen over the newer drugs, which cost more and have different side effects such as joint pain, bone loss and sexual problems.

The new study aimed to see whether over a very long time, longer treatment with tamoxifen could help.

Dr. Christina Davies of the University of Oxford in England and other researchers assigned 6,846 women who already had taken tamoxifen for five years to either stay on it or take dummy pills for another five years.

Researchers saw little difference in the groups five to nine years after diagnosis. But beyond that time, 15 percent of women who had stopped taking tamoxifen after five years had died of breast cancer versus 12 percent of those who took it for 10 years. Cancer had returned in 25 percent of women on the shorter treatment versus 21 percent of those treated longer.

Tamoxifen had some troubling side effects: Longer use nearly doubled the risk of endometrial cancer. But it rarely proved fatal, and there was no increased risk among premenopausal women in the study — the very group tamoxifen helps most.

"Overall the benefits of extended tamoxifen seemed to outweigh the risks substantially," Dr. Trevor Powles of the Cancer Centre London wrote in an editorial published with the study.

The study was sponsored by cancer research organizations in Britain and Europe, the United States Army, and AstraZeneca PLC, which makes Nolvadex, a brand of tamoxifen, which also is sold as a generic for 10 to 50 cents a day. Brand-name versions of the newer hormone blockers, aromatase inhibitors, are $300 or more per month, but generics are available for much less.

The results pose a quandary for breast cancer patients past menopause and those who become menopausal because of their treatment — the vast majority of cases. Previous studies found that starting on one of the newer hormone blockers led to fewer relapses than initial treatment with tamoxifen did.

Another study found that switching to one of the new drugs after five years of tamoxifen cut the risk of breast cancer recurrence nearly in half — more than what was seen in the new study of 10 years of tamoxifen.

"For postmenopausal women, the data still remain much stronger at this point for a switch to an aromatase inhibitor," said that study's leader, Dr. Paul Goss of Massachusetts General Hospital. He has been a paid speaker for a company that makes one of those drugs.

Women in his study have not been followed long enough to see whether switching cuts deaths from breast cancer, as 10 years of tamoxifen did. Results are expected in about a year.

The cancer conference is sponsored by the American Association for Cancer Research, Baylor College of Medicine and the UT Health Science Center.

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Wall Street dips as investors seek cliff progress

NEW YORK (Reuters) - Stocks finished slightly lower in a quiet session on Tuesday as the back-and-forth wrangling over the "fiscal cliff" gave investors little reason to act.

Trading volume was light as legislators continue to negotiate a deal to avoid a $600 billion package of tax hikes and federal spending cuts that would begin January 1 and could push the economy into recession.

Just 5.86 billion shares changed hands on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the year's daily average of 6.48 billion shares.

A key measure of investor anxiety has remained muted. The CBOE Volatility Index or VIX <.vix>, a gauge of market anxiety, was at 17.13, up 2.9 percent. It has not traded above 20 since July.

Optimism for progress was dented after remarks by President Barack Obama, who rejected a Republican proposal to resolve the crisis as "out of balance" and said any deal must include a rise in income tax rates on the wealthiest Americans.

"People don't know if what's going on is political posturing or real negotiations that represent progress," said Bernard Baumohl, managing director and chief global economist at the Economic Outlook Group in Princeton, New Jersey.

Expectations of higher taxes on dividends beginning in 2013 have pushed many companies to pay special dividends this year or advance their next payback to investors. Coach became the latest to move up the date of its next dividend payment, and the news lifted shares of the upscale leather-goods maker earlier in the session. By the close, though, Coach was down 1.2 percent at $57.52.

One of the S&P 500's top sectors for the day was health care <.gspa>, considered a defensive group.

The Dow Jones industrial average <.dji> fell 13.82 points, or 0.11 percent, to 12,951.78 at the close. The Standard & Poor's 500 Index <.spx> dipped 2.41 points, or 0.17 percent, to 1,407.05. The Nasdaq Composite Index <.ixic> shed 5.51 points, or 0.18 percent, to close at 2,996.69.

The market has been sensitive to rhetoric from Washington, as a failure to reach an agreement could send the U.S. economy back into recession. Still, many expect a resolution to be found, which could extend the S&P 500's rally of 12 percent so far this year.

Differences within the Republican Party came to the fore on Tuesday as one senator opposed to raising taxes lashed out at Republican House Speaker John Boehner for proposing to increase revenue by closing some tax loopholes.

Congressional Republicans recently proposed steep spending cuts to bring down the budget deficit, but gave no ground on Obama's call to raise tax rates on the rich. The proposal was quickly dismissed by the White House.

"We're on hold trying to figure it out, but investors are stressed since they have to make decisions soon about how to proceed with their investments if taxes are indeed going up. We could see a real pick-up in volume over the next week or so," Baumohl said.

Netflix Inc was the S&P 500's top percentage gainer, advancing 14 percent to $86.65 after Walt Disney Co agreed to give the company exclusive TV distribution rights to its movies, starting in 2016.

Darden Restaurants Inc shares plunged 9.6 percent to $47.40 as the S&P 500's worst performer after the company warned that its latest quarter would miss expectations after unsuccessful promotions led to a decline in sales at its Olive Garden, Red Lobster and LongHorn Steakhouse chains.

In contrast, Big Lots Inc surged 11.5 percent to $31.27 after the close-out retailer posted a smaller-than-expected loss and boosted its full-year adjusted earnings forecast.

MetroPCS Communications shares tumbled 7.5 percent to $9.96 after Sprint Nextel appeared unlikely to make a counter-offer for the wireless service provider.

Almost half of the stocks traded on the New York Stock Exchange closed lower, while 50 percent of Nasdaq-listed shares closed in negative territory.

After the closing bell, Pandora Media Inc

shares plunged 23 percent after the company reported its third-quarter results.

(Editing by Jan Paschal)

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