Wall Street cuts losses on Boehner "fiscal cliff" comment

NEW YORK (Reuters) - Stocks sharply pared losses on Wednesday after U.S. House Speaker John Boehner said he was optimistic that a deal on the "fiscal cliff" to avert large tax hikes and spending cuts could be reached.

After falling nearly 1 percent, the S&P 500 pared losses to trade near flat after Boehner said that Republicans were willing to put revenues on the table if Democrats agreed to spending cuts.

For weeks now, the market has been swinging back and forth on headlines out of Washington regarding the ongoing U.S. budget talks.

Later in the day, President Barack Obama will meet at the White House with chief executives from top corporations including Goldman Sachs , Deloitte LLP, and Caterpillar Inc , to discuss U.S. fiscal problems.

"While there's little that the president and vice president could do at today's meeting to improve moods in America's corner office, we still believe a legislative compromise will be reached before 'fiscal cliff' detonates," said Jack Ablin, chief investment officer at BMO Private Bank.

"In the meantime, we expect daunting headlines and emotional market volatility."

One possible result of the deficit reduction talks is a rise in the tax rate on dividends, prompting some firms to issue special dividends or move up plans for dividends.

The latest example is retailer Costco Wholesale Corp , which said it will pay a special $3 billion dividend to investors. The company posted monthly same-store sales that beat forecasts. The stock rose 4.7 percent to $101.07.

The Dow Jones industrial average <.dji> was up 3.38 points, or 0.03 percent, at 12,881.51. The Standard & Poor's 500 Index <.spx> was down 1.73 points, or 0.12 percent, at 1,397.21. The Nasdaq Composite Index <.ixic> was down 5.10 points, or 0.17 percent, at 2,962.69.

Earlier, the S&P 500 fell nearly 1 percent on data that showed U.S. single-family home sales fell in October, casting a shadow over what has been one of the brighter spots in the U.S. economy.

Knight Capital Group Inc shares jumped 10 percent to $3.27 on news that Getco LLC has sent a proposal for a merger between Getco and Knight Capital at a price of $3.50 per share, according to a regulatory filing.

On the downside, Apple Inc shares fell 1.3 percent to $576.80, weighing heavily on the overall market.

(Reporting By Angela Moon; Editing by Kenneth Barry)

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Japan Expands Its Regional Military Role

Ko Sasaki for The New York Times

Coast guard officials from a dozen Asian and African nations, at right, joined a training cruise around Tokyo Bay aboard a Japanese Coast Guard cutter.

TOKYO — After years of watching its international influence eroded by a slow-motion economic decline, the pacifist nation of Japan is trying to raise its profile in a new way, offering military aid for the first time in decades and displaying its own armed forces in an effort to build regional alliances and shore up other countries’ defenses to counter a rising China.

Already this year, Japan crossed a little-noted threshold by providing its first military aid abroad since the end of World War II, approving a $2 million package for its military engineers to train troops in Cambodia and East Timor in disaster relief and skills like road building. Japanese warships have not only conducted joint exercises with a growing number of military forces in the Pacific and Asia, but they have also begun making regular port visits to countries long fearful of a resurgence of Japan’s military.

And after stepping up civilian aid programs to train and equip the coast guards of other nations, Japanese defense officials and analysts say, Japan could soon reach another milestone: beginning sales in the region of military hardware like seaplanes, and perhaps eventually the stealthy diesel-powered submarines considered well suited to the shallow waters where China is making increasingly assertive territorial claims.

Taken together those steps, while modest, represent a significant shift for Japan, which had resisted repeated calls from the United States to become a true regional power for fear that doing so would move it too far from its postwar pacifism. The country’s quiet resolve to edge past that reluctance and become more of a player comes as the United States and China are staking their own claims to power in Asia, and as jitters over China’s ambitions appear to be softening bitterness toward Japan among some Southeast Asian countries trampled last century in its quest for colonial domination.

The driver for Japan’s shifting national security strategy is its tense dispute with China over uninhabited islands in the East China Sea that is feeding Japanese anxiety that the country’s relative decline — and the financial struggles of its traditional protector, the United States — are leaving Japan increasingly vulnerable.

“During the cold war, all Japan had to do was follow the U.S.,” said Keiro Kitagami, a special adviser on security issues to Prime Minister Yoshihiko Noda. “With China, it’s different. Japan has to take a stand on its own.”

Japan’s moves do not mean it might transform its military, which serves a purely defensive role, into an offensive force anytime soon. The public has resisted past efforts by some politicians to revamp Japan’s pacifist constitution, and the nation’s vast debt will limit how much military aid it can extend.

But it is also clear that attitudes in Japan are evolving as China continues its double-digit annual growth in military spending and asserts that it should be in charge of the islands that Japan claims, as well as vast swaths of the South China Sea that various Southeast Asian nations say are in their control.

Japanese leaders have met the Chinese challenge over the islands known as the Senkaku in Japan and the Diaoyu in China with an uncharacteristic willingness to push back, and polls show the public increasingly agrees. Both major political parties are also talking openly about instituting a more flexible reading of the constitution that would allow Japan to come to the defense of allies — shooting down any North Korean missile headed for the United States, for instance — blurring the line between an offensive and defensive force.

The country’s self-defense forces had already begun nosing over that line in Iraq and Afghanistan, where Japan backed the United States-led campaigns by deploying naval tankers to refuel warships in the Indian Ocean.

Japanese officials say their strategy is not to begin a race for influence with China, but to build up ties with other nations that share worries about their imposing neighbor. They acknowledge that even building the capacity of other nations’ coast guards is a way of strengthening those countries’ ability to stand up to any Chinese threat.

“We want to build our own coalition of the willing in Asia to prevent China from just running over us,” said Yoshihide Soeya, director of the Institute of East Asian Studies at Keio University in Tokyo.

Or, as the vice minister of defense, Akihisa Nagashima, said in an interview, “We cannot just allow Japan to go into quiet decline.”

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Nintendo says more than 400,000 Wii Us sold in US

NEW YORK (AP) — Nintendo has sold more than 400,000 of its new video game console, the Wii U, in its first week on sale in the U.S., the company said Monday.

The Wii U launched on Nov. 18 in the U.S. at a starting price of $ 300. Nintendo said the sales figure, based on internal estimates, is through Saturday, or seven days later.

The Wii U is the first major game console to launch in six years. It comes with a new touch-screen controller that promises to change how people play games by offering different people in the same room a different experience, depending on the controller used.

Six years ago, Nintendo Co. sold 475,000 of the original Wii in that console’s first seven days in stores, according to data from the NPD Group. The original Wii remains available, and Nintendo said it sold more than 300,000 of them last week, along with roughly 250,000 handheld Nintendo 3DS units and about 275,000 of the Nintendo DS.

At this early stage, demand isn’t the only factor dictating how many consoles are sold. Supply is, too. This means it’s likely that more people wanted to buy the Wii U in the first week than those who were able to. The original Wii was in short supply more than a year after it went on sale.

As of Monday afternoon, the website of Best Buy Co. was sold out of the Wii U. Video game retailer GameStop Corp. said there was at least a three day wait for a deluxe Wii U, which costs $ 350, has more memory and comes with a game called “Nintendo Land.” GameStop still had the basic, $ 300 version available.

Wedbush analyst Michael Pachter estimates that Nintendo will ship 1 million to 1.5 million Wii Us in the U.S. through the end of January.

Gaming News Headlines – Yahoo! News

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Meet Britney Spears's 'New Little Baby Girl': Hannah the Dog

People Pets

By Alison Schwartz

11/27/2012 at 12:20 PM EST

Courtesy of Britney Spears

New job, new dog?

Freshly minted The X Factor judge Britney Spears is showing off an adorable addition to her fan base: introducing ... Hannah!

"I want you all to meet my new little baby girl @hannahspears," Spears, 30, Tweeted Monday, alongside a sweet snapshot of the duo. "How cute is she?!?!"

And, yes, Britney's b––h already has a budding fan following of her own. The pint-sized pooch is taking to Twitter – perhaps with the help of mom – with some doggone pressing thoughts.

"Should I wear a bow?" reads a Tweet from Hannah's account. "Mom says I'm a princess & that I need a bow."

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CDC: HIV spread high in young gay males

NEW YORK (AP) — Health officials say 1 in 5 new HIV infections occur in a tiny segment of the population — young men who are gay or bisexual.

The government on Tuesday released new numbers that spotlight how the spread of the AIDS virus is heavily concentrated in young males who have sex with other males. Only about a quarter of new infections in the 13-to-24 age group are from injecting drugs or heterosexual sex.

The Centers for Disease Control and Prevention said blacks represented more than half of new infections in youths. The estimates are based on 2010 figures.

Overall, new U.S. HIV infections have held steady at around 50,000 annually. About 12,000 are in teens and young adults, and most youth with HIV haven't been tested.

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Online:

CDC report: http://www.cdc.gov/vitalsigns

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Wall Street down as "fiscal cliff" scares investors away

NEW YORK (Reuters) - U.S. stocks fell on Tuesday as worries over the impact of "fiscal cliff" on the economy overshadowed progress in easing Greece's debt burden and a slew of positive U.S. economic data.

A deal in Europe to release emergency aid to debt-laden Greece gave a brief, early lift to stocks, but the news was not enough to sustain the gains as investors confronted the looming "fiscal cliff" at home.

As Democrats and Republicans prepared to resume efforts to bridge their sharp differences over taming the federal debt this week in Washington, the market resumed its cautious mode.

"It's like there is nothing else but the fiscal cliff now. It is too big of an issue both economically and politically for investors to just brush off," said Jack DeGan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.

The market's worry is whether Congress and the White House can agree on ways to avoid some $600 billion in automatic spending cuts and tax increases that are due to kick early next year. Some fear dramatic fiscal restraint could send the economy into recession.

"It's hard for markets to move on fundamentals now. Even if they do, they quickly come back to being cautious. Investors may buy on small dips but they don't stay in that position for long," DeGan said.

Market reaction was muted to data that showed Americans' confidence in November hit the highest level in more than four years and home prices in September rose for an eighth straight month.

In addition, a gauge of planned U.S. business spending increased by the most in five months in October, data on durable goods orders showed.

The Dow Jones industrial average <.dji> was down 37.35 points, or 0.29 percent, at 12,930.02. The Standard & Poor's 500 Index <.spx> was down 2.75 points, or 0.20 percent, at 1,403.54. The Nasdaq Composite Index <.ixic> was down 4.21 points, or 0.14 percent, at 2,972.58.

As of Monday's close, the S&P 500 was holding above the 1,400, the level it reclaimed last week. But volume continued to be weak as traders awaited any progress to avert the fiscal restraint. Last week, the S&P 500 advanced nearly 4 percent.

Among individual stocks, Corning Inc shares rose 6.3 percent to $12.07 after the specialty glass maker said it expects full-year sales of its Gorilla glass, used in smartphones and tablets, to approach $1 billion.

McMoRan Exploration Co shares tumbled 22 percent to $7.55 after the oil and gas explorer said on Monday that it could not achieve a measurable flow test at its key Davy Jones No. 1 well in the Gulf of Mexico.

(Reporting By Angela Moon; Editing by Theodore d'Afflisio and Kenneth Barry)

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Rebels Claim They Seized Air Bases and a Dam in Syria

Reuters

The bodies of Syrian civilians in a street in the northern city of Aleppo on Sunday, after opposition activists said they were shot by government forces.

BEIRUT, Lebanon — Fresh from declaring that they had seized an important military airport and an air defense base just outside Damascus, Syrian rebels on Monday said they overran a hydroelectric dam in the north of the country, adding to a monthlong string of tactical successes — capturing bases, disrupting supply routes and seizing weaponry — that demonstrate their ability to erode the government’s dominance in the face of withering aerial attacks.

The battlefield advances coincided with fresh claims of bloody events on the ground, with rebels saying a government airstrike on Sunday killed several schoolchildren in a playground. Video from the playground, which activists said was taken in the village of Dayr al-Asafir close to the Marj al-Sultan air base, showed at least half a dozen children who were dead or wounded from what activists said was a cluster bomb. The asphalt was pockmarked and littered with bomb casings.

On the ground lay two children: a young girl, identified as Anoud Mohammed, in a purple sweatsuit, and a child who appeared to be a toddler in a red sweater, their eyes open and staring. Around them people were carrying the limp bodies of other children whose bare feet were smeared with blood, as a woman knelt beside Anoud and screamed at the sky. In a later video, Anoud lay dead in a hospital.

“What’s her fault, this child?” a man’s voice shouted. “What’s her fault, Bashar, this little girl?”

On Monday, the conflict was reported once again to have spilled beyond Syria’s border, drawing in Turkish antiaircraft gunners who were said by the insurgents to have opened fire on a government warplane that appeared to have entered Turkish airspace as it attacked rebel positions in the Syrian town of Atma, just across the 550-mile Turkish-Syrian border.

According to two antigovernment Syrian opposition groups — the Syrian Observatory for Human Rights and the Local Coordinating Committees — and a fighter on the ground, who gave his name only as Saado, the Turkish fire deterred an attack on an area that includes a rebel headquarters and a camp for internally displaced Syrians. But there was no confirmation of the episode from Turkey, and the Syrian state news agency did not refer to the rebels’ claims.

Government warplanes also attacked the Bab al-Hawa border crossing at the Turkish border, an area where rebels have enjoyed control for several months, according to an antigovernment activist in Turkey. Many internally displaced Syrians have taken refuge in the area and fled in terror from the fighting, said the activist, who gave his name as Abu Zaki. The strike showed the government’s ability to strike at will from the air even in rebel-held territory where it has no control on the ground.

Syria and Turkey have exchanged mortar fire on numerous occasions in recent months, and Turkey, a NATO member, has requested that the alliance provide it with Patriot antimissile batteries, a possible step toward creating a de facto no-fly zone in northern Syria to protect rebels from Syrian government air attacks. Turkey has come under criticism from Russia and others for the request.

On Monday, Turkey’s military insisted that the Patriot missiles would be used only to defend Turkish territory. “Deployment of air and missile defense systems is a measure solely against potential air and missile threats that might come from Syria,” said a statement posted on the Turkish Army’s Web site. “It is out of question for it to be used either for a ‘no fly zone’ or an offensive operation.”

A group of NATO experts was expected to start assessing Turkey’s 550-mile southern border with Syria to identify sites for possible bases, and determine staffing and other technical details. The foreign troops that would accompany the Patriot systems would be subject to a special agreement, the statement said.

On Monday, amateur video, which could not be verified, showed what was purported to be rebel soldiers ransacking boxes of captured weapons, including hand grenades and rocket-propelled grenades at the Tishreen Dam near the town of Menbej. “Here are your spoils, Bashar,” a voice can be heard saying, referring to President Bashar al-Assad. “Here are your weapons, Bashar. God is great,” a rebel exclaims as two men are filmed carrying off a trunk of munitions.

Rebel forces had been besieging the dam’s defenses on the Euphrates River for days.

Anne Barnard reported from Beirut, C.J. Chivers from the United States, and Alan Cowell from Paris. Reporting was contributed by Hwaida Saad, Hania Mourtada and Hala Droubi from Beirut

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How Will Larry Hagman's Death Affect Season 2 of Dallas?

TV Watch

TV News

11/26/2012 at 12:45 PM EST

Larry Hagman as J.R. Ewing

TNT

What will happen to J.R. Ewing?

Before his death on Friday from complications from throat cancer, Larry Hagman, who plays the devious oil tycoon, had filmed six of 15 episodes for season 2 of Dallas.

Now, the show's writers and producers will have to find a way to finish filming the season without the show's most iconic character.

According to EW.com, producers want to give J.R. "the proper sendoff that he deserves."

"Larry Hagman was a giant, a larger-than-life personality whose iconic performance as J.R. Ewing will endure as one of the most indelible in entertainment history," executive producers Cynthia Cidre and Michael M. Robin said in a statement on Friday.

In the show's first season, an aging – but still scheming – J.R. spent some time in a nursing home to be treated for depression.

TNT, which airs Dallas, said in a statement: "We will be forever thankful that a whole new generation of people got to know and appreciate Larry through his performance as J.R. Ewing."

Deadline.com reports that it's currently unclear how Hagman's death will affect the show but speculates there may be a hiatus in filming, so "the writers can rework the scripts for the remaining episodes" without him.

Like the 1980 cliffhanger on the original Dallas – which left viewers asking, "Who shot J.R.?" – a farewell episode will likely be must-watch TV for fans.

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Bounce houses a party hit but kids' injuries soar

CHICAGO (AP) — They may be a big hit at kids' birthday parties, but inflatable bounce houses can be dangerous, with the number of injuries soaring in recent years, a nationwide study found.

Kids often crowd into bounce houses, and jumping up and down can send other children flying into the air, too.

The numbers suggest 30 U.S. children a day are treated in emergency rooms for broken bones, sprains, cuts and concussions from bounce house accidents. Most involve children falling inside or out of the inflated playthings, and many children get hurt when they collide with other bouncing kids.

The number of children aged 17 and younger who got emergency-room treatment for bounce house injuries has climbed along with the popularity of bounce houses — from fewer than 1,000 in 1995 to nearly 11,000 in 2010. That's a 15-fold increase, and a doubling just since 2008.

"I was surprised by the number, especially by the rapid increase in the number of injuries," said lead author Dr. Gary Smith, director of the Center for Injury Research and Policy at Nationwide Children's Hospital in Columbus, Ohio.

Amusement parks and fairs have bounce houses, and the playthings can also be rented or purchased for home use.

Smith and colleagues analyzed national surveillance data on ER treatment for nonfatal injuries linked with bounce houses, maintained by the U.S. Consumer Product Safety Commission. Their study was published online Monday in the journal Pediatrics.

Only about 3 percent of children were hospitalized, mostly for broken bones.

More than one-third of the injuries were in children aged 5 and younger. The safety commission recommends against letting children younger than 6 use full-size trampolines, and Smith said barring kids that young from even smaller, home-use bounce houses would make sense.

"There is no evidence that the size or location of an inflatable bouncer affects the injury risk," he said.

Other recommendations, often listed in manufacturers' instruction pamphlets, include not overloading bounce houses with too many kids and not allowing young children to bounce with much older, heavier kids or adults, said Laura Woodburn, a spokeswoman for the National Association of Amusement Ride Safety Officials.

The study didn't include deaths, but some accidents are fatal. Separate data from the product safety commission show four bounce house deaths from 2003 to 2007, all involving children striking their heads on a hard surface.

Several nonfatal accidents occurred last year when bounce houses collapsed or were lifted by high winds.

A group that issues voluntary industry standards says bounce houses should be supervised by trained operators and recommends that bouncers be prohibited from doing flips and purposefully colliding with others, the study authors noted.

Bounce house injuries are similar to those linked with trampolines, and the American Academy of Pediatrics has recommended against using trampolines at home. Policymakers should consider whether bounce houses warrant similar precautions, the authors said.

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Online:

Pediatrics: http://www.pediatrics.org

Trade group: http://www.naarso.com

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Wall Street falls on caution after rally, retail drags

NEW YORK (Reuters) - Stocks eased on Monday as a mixed start to the holiday shopping season, caution over Greek aid talks and budget discussions in Washington gave investors reason to pause after Wall Street posted its best week in over five months.

While holiday shopping appeared to be off to a good start, analysts cautioned against reading too much into one weekend's numbers. Retailers need to sustain the initial burst through the November-December holiday season, which can account for a third of annual sales and 40 to 50 percent of profits for the year.

Shares in department store operator Macy's Inc , which offered consumers deep discounts on Black Friday, fell 3.6 percent to $40.22. The SPDR S&P retail exchange-traded fund fell 1.3 percent to $62.39.

"The underwhelming performance of retailers in general is hurting the market," said Michael James, a senior trader at Wedbush Morgan in Los Angeles. "Retail is certainly seeing a mixed bag."

Investors continued to chew over two of the greatest overhangs for markets. Euro zone finance ministers and the International Monetary Fund will seek to unfreeze the second bailout package for Greece on Monday. At the same time, U.S. lawmakers have made little progress in the past 10 days toward a compromise to avoid the harsh tax increases and government spending cuts schedule to start in January.

"Friday was a big day in the stock market," said Tim Ghriskey, chief investment officer at Solaris Group in Bedford Hills, New York. "So it's not surprising at all to see some profit-taking on that."

The Dow Jones industrial average <.dji> dropped 88.58 points, or 0.68 percent, to 12,921.10. The Standard & Poor's 500 Index <.spx> fell 8.40 points, or 0.60 percent, to 1,400.75. The Nasdaq Composite Index <.ixic> lost 5.84 points, or 0.20 percent, to 2,961.01.

Total spending for the Black Friday long weekend rose 12.8 percent from last year, to $59.1 billion, from last year, according to the National Retail Federation. That pace was down from the prior year's 16.4 percent increase.

Black Friday's online sales topped $1 billion for the first time ever as more consumers used the Internet do their early holiday shopping, comScore Inc said on Sunday.

Major indexes ended last week with gains of 3 to 4 percent, recovering some of their losses following an 8 percent correction since September. The Dow and S&P 500 both closed above key technical levels for the first time since November 6, which could provide additional support. The Dow ended above 13,000, while the S&P broke above 1,400.

In company news, shares of Knight Capital Group Inc jumped 10.4 percent to $2.75. A source familiar with the matter on Saturday said the company is in talks about possibly selling its market-making operation, its largest and most profitable business, but it is not known if a deal will happen. Knight's chief executive, in an internal memo, said the company currently is in talks with at least two firms on the possible sale of its largest business unit, but would only pursue a deal if it created value for its shareholders and clients.

Qatar has cashed in its remaining warrants in Britain's Barclays Plc , a move that should yield a $280 million profit. The warrants have not yet been converted, but conversion would dilute the holding of shares by other investors. U.S.-listed shares of Barclays fell 5.6 percent to $15.37.

Apple Inc has asked a federal court to add six more products to its patent infringement lawsuit against Samsung Electronics Co , including the Samsung Galaxy Note II, in the latest move in an ongoing legal war between the two companies. Apple shares were up 1.7 percent at $581.

(Additional reporting by Gabriel Debenedetti; Editing by Kenneth Barry and Leslie Adler)

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