Wall Street ends almost flat as Bernanke warns on "cliff"

NEW YORK (Reuters) - Stocks ended nearly flat on Wednesday, giving up most of the day's gains after Fed Chairman Ben Bernanke reiterated that monetary policy won't be enough to offset damage from the "fiscal cliff."

His comments followed the Federal Reserve's announcement of a new stimulus plan, which briefly pushed the S&P 500 to a seven-week high.

The plan, the latest attempt to boost the country's struggling economy, will replace a more modest program set to expire with a fresh round of Treasury purchases that will increase its balance sheet. The program is known as "quantitative easing" or QE.

In comments after the announcement, Bernanke said he hopes that markets won't have to tank to get a fiscal cliff deal.

"Initially the addition of QE was certainly favorable. I think, though, in the press conference, what came out is that there still seems to be a level of uncertainty with regard to the exit strategy (and) the efficacy of the current policy," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

Bernanke "reiterated the fact that monetary policy has its hands tied as far as addressing the seriousness of going over the fiscal cliff," Hellwig added.

The S&P financial sector index <.gspf>, which had been up more than 1 percent after the Fed's announcement, ended up just 0.5 percent.

Wal-Mart Stores Inc's stock was the biggest drag on the Dow, falling 2.8 percent to $68.94 following the Indian government's announcement of an inquiry into the company's lobbying practices.

The Dow Jones industrial average <.dji> slipped 2.99 points, or 0.02 percent, to 13,245.45 at the close. The Standard & Poor's 500 Index <.spx> inched up just 0.64 of a point, or 0.04 percent, to 1,428.48. But the Nasdaq Composite Index <.ixic> shed 8.49 points, or 0.28 percent, to end at 3,013.81.

Though the S&P 500 ended up just slightly, it was the sixth day of gains for the index - its longest winning streak since August.

The central bank committed to monthly purchases of $45 billion in Treasuries on top of the $40 billion per month in mortgage-backed bonds it started buying in September. It also said it will keep its near-zero interest-rate program in place until the U.S. unemployment rate falls to 6.5 percent from its current 7.7 percent.

"The actions by the Fed were more aggressive than investors anticipated," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

"The asset-purchasing program is probably larger and more comprehensive than some might have thought."

Negotiations over plans to avoid the fiscal cliff intensified in Washington, but U.S. House of Representatives Speaker John Boehner said on Wednesday that "serious differences" remain with President Barack Obama in their talks. If no agreement is reached, steep tax hikes and budget cuts will fall into place early next year.

Shares of Aetna , the third-largest U.S. health insurer, gained 3.2 percent to $45.91, a day after the company gave a higher forecast for profit and revenue growth in 2013.

Volume was roughly 6.58 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of 6.52 billion.

Decliners slightly outnumbered advancers on the NYSE by about 16 to 15, and on the Nasdaq, by about 3 to 2.

(Reporting by Caroline Valetkevitch; Additional reporting by Leah Schnurr Editing by Jan Paschal)

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Ravi Shankar, Sitarist Who Introduced Indian Music to the West, Dies at 92

Associated Press

The Beatles' George Harrison with Ravi Shankar in 1967.

Ravi Shankar, the Indian sitarist and composer whose collaborations with Western classical musicians as well as the Beatles and other rock stars helped foster a worldwide appreciation of India’s traditional music, died on Tuesday in San Diego. He was 92.

Mr. Shankar died in a hospital near his home, his family said in a statement, adding that he had suffered from upper respiratory and heart ailments in the last year and underwent heart-valve replacement surgery last Thursday.

Mr. Shankar, a soft-spoken, eloquent man whose virtuosity transcended musical languages, was trained in both Eastern and Western musical traditions. Although Western audiences were often mystified by the odd sounds and shapes of the instruments when he began touring in Europe and the United States in the early 1950s, Mr. Shankar and his ensemble gradually built a large following for Indian music.

Mr. Shankar collaborated with the violinist Yehudi Menuhin and the flutist Jean-Pierre Rampal, and was a mentor to the jazz saxophonist and composer John Coltrane. But Western interest in his instrument, the sitar, exploded in 1965 when George Harrison of the Beatles encountered one on the set of “Help!,” the Beatles’ second film.

Harrison was intrigued by the instrument, with its small rounded body, long neck and resonating gourd at the top, and its complexity: it has 6 melody strings and 25 sympathetic strings, which are not played but which resonate freely as the other strings are plucked. He soon learned its rudiments and used it that year on a Beatles recording, “Norwegian Wood.”

The Rolling Stones, the Animals, the Byrds and other rock groups quickly followed suit, although few went as far as Harrison, who recorded several songs on Beatles albums with Indian musicians rather than with his band mates. By the summer of 1967 the sitar was in vogue in the rock world.

At first Mr. Shankar reveled in the attention his connection with popular culture brought him, and he performed for huge audiences at the Monterey International Pop Festival in 1967 and at Woodstock in 1969. He also performed, with the tabla virtuoso Alla Rakha and the sarod player Ali Akbar Khan, at an all-star concert at Madison Square Garden in 1971 that Harrison organized to help Mr. Shankar raise money for the victims of political upheaval in Bangladesh.

Last week Mr. Shankar was told that he would receive a lifetime achievement Grammy Award in February, said Neil Portnow, the head of the National Academy of Recording Arts & Sciences.

In addition to his frequent tours as a sitarist, Mr. Shankar, the father of the singer Norah Jones and the sitar virtuoso Anoushka Shankar, was a prolific composer of film music (including the score for Richard Attenborough’s “Gandhi” in 1982), ballets, electronic works and concertos for sitar and Western orchestras.

In 1988 his seven-movement “Swar Milan” was performed at the Palace of Culture in Moscow by an ensemble of 140 musicians, including the Russian Folk Ensemble, members of the Moscow Philharmonic and the Ministry of Culture Chorus, as well as Mr. Shankar’s own group of Indian musicians. And in 1990 he collaborated with the Minimalist composer Philip Glass — who had worked as his assistant on the film score for “Chappaqua” in the late 1960s — on “Passages,” a recording of works he and Mr. Glass composed for each other.

“I have always had an instinct for doing new things,” Mr. Shankar said in 1985. “Call it good or bad, I love to experiment.”

But he came to regard his participation in rock festivals as a mistake, saying he deplored the use of his music, which has its roots in an ancient spiritual tradition, as a backdrop for drug taking.

“On one hand,” he said in a 1985 interview, “I was lucky to have been there at a time when society was changing. And although much of the hippie movement seemed superficial, there was also a lot of sincerity in it, and a tremendous amount of energy. What disturbed me, though, was the use of drugs and the mixing of drugs with our music. And I was hurt by the idea that our classical music was treated as a fad — something that is very common in Western countries.

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AP PHOTOS: Top 10 Search Trends of 2012

NEW YORK (AP) — From the tragic to the downright silly, millions of people searched the Web in 2012 to find out about a royal princess, the latest iPad, a record-breaking skydiver and the death of a pop star.

Google released its 12th annual “zeitgeist” report on Wednesday. The company calls it “an in-depth look at the spirit of the times as seen through the billions of searches on Google over the past year.”

Here’s an Associated Press photo gallery of the top ten trending searches of 2012.

Gadgets News Headlines – Yahoo! News

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Eva Herzigová Expecting Third Child

Mom & Babies
Celebrity Baby Blog

12/12/2012 at 05:00 PM ET

Dave M. Benett/Getty

This model mama is expanding her brood!

Eva Herzigová is five months pregnant with her third child, her agency Storm Models confirms to the Telegraph.

She and husband Gregorio Marsiaj will welcome the baby in the spring.

The new addition will join big brothers Philipe, 21 months, and George, 5.

One of the original supermodels — best-known for her Wonderbra ads — Herzigova, 39, continues to be a name in the industry.

She walked the runway just two weeks ago and is the new face of Dior Capture skincare.

– Sarah Michaud

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APNewsBreak: DA investigating Texas cancer agency

AUSTIN, Texas (AP) — The Texas prosecutor responsible for investigating public corruption among state officials said Tuesday that he has opened an investigation into the state's troubled $3 billion cancer-fighting agency.

Gregg Cox, director of the Travis County district attorney's public integrity unit, told The Associated Press that an investigation has begun into the Cancer Prevention and Research Institute of Texas. The agency also is under investigation by the Texas attorney general's office after an $11 million grant to a private company did not receive the proper review.

Cox said his unit, which prosecutes crimes related to the operation of state government, is beginning its investigation not knowing "what, if any, crime occurred" at CPRIT.

His announcement came on the same day that CPRIT said its executive director had submitted his resignation letter and amid escalating scrutiny over the management of the nation's second-biggest pot of cancer research dollars.

CPRIT has not been able to focus on fighting the disease due to "wasted efforts expended in low value activities" during the past tumultuous eight months, Executive Director Bill Gimson wrote in a resignation letter dated Monday. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

Gimson has led the state agency since it launched in 2009. But he fell under mounting criticism over the recent disclosure that an $11 million award to a private company was never reviewed. It was the second time this year that a lucrative taxpayer-funded grant instigated backlash and raised questions about oversight.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote.

The Texas attorney general's office has said it is looking into CPRIT's $11 million grant to Dallas-based Peloton Therapeutics. An internal audit performed by the agency revealed that Peloton's proposal was approved for funding in 2010 without being reviewed by an outside panel.

Gimson said last week that Peloton's funding was the result of an honest mistake that happened when the agency was still young and in the process of installing checks and balances. Agency emails surrounding the Peloton grant are no longer available, Gimson said, and state investigators said they will work to find them.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far. The agency's former chief science officer, Nobel laureate Alfred Gilman, resigned earlier this year over a separate $20 million award that Gilman claimed received a thin review. That led some of the nation's top scientists to accuse the agency of charting a politically-driven path.

___

Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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Big tech boosts S&P 500 to best close since election

NEW YORK (Reuters) - Stocks rose on Tuesday, led by gains in technology companies, helping the S&P 500 end at its highest level since Election Day.

A 2.2 percent gain to $541.39 in Apple's stock lifted the Nasdaq, as the largest U.S. company by market value rebounded from a week in which investors took profits before a possible tax rise next year. Prior to Tuesday's trading, Apple shares had lost 25 percent from an all-time intraday high hit in September.

Stocks pared some gains by late afternoon as more news on the "fiscal cliff" negotiations emerged. U.S. Senate Majority Leader Harry Reid said it will be difficult to reach agreement resolving the cliff tax hikes and spending cuts before Christmas.

"There's been a real explosion in anxiety over this thing. Because markets have become the way they are, you've got people just stepping back," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.

"There's a tremendous absence of liquidity in the market," he said.

The S&P 500 had lost 5.3 percent in the seven sessions following Election Day as investors refocused on the threat posed to the economy by the fiscal cliff, a series of automatic spending cuts and tax increases. Markets have mostly recovered those losses, but volume has been thin, suggesting investors are not betting aggressively due to the uncertainty.

The Dow Jones industrial average <.dji> was up 78.56 points, or 0.60 percent, at 13,248.44. The Standard & Poor's 500 Index <.spx> was up 9.29 points, or 0.65 percent, at 1,427.84. The Nasdaq Composite Index <.ixic> was up 35.34 points, or 1.18 percent, at 3,022.30.

Volume was roughly 6.43 billion shares traded on the NYSE, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of roughly 6.5 billion.

Other major tech stocks also rose. Texas Instruments gained 4 percent to $31.01 after bumping up its profit target late Monday. That helped other chipmakers rally, with the PHLX Semiconductor index <.sox> up 1.9 percent. Microsoft rose 1.4 percent to $27.32.

The lack of demonstrable progress in the fiscal cliff negotiations has kept investors from making aggressive bets in recent weeks.

Republican House Speaker John Boehner called on President Barack Obama to propose a counter-offer on Tuesday.

Retailers like luggage maker Tumi Holding Inc and Michael Kors Holding gained on Tuesday after a positive report from Goldman Sachs Equity Research. Tumi was up 4.7 percent to $21.92 and Michael Kors gained 2.4 percent, reaching $50.92.

By contrast, discount retailers Dollar General and Family Dollar declined. Dollar General, whose shares fell 7.8 percent to $42.94, said it sees margins under pressure in 2013. [ID:nL1E8NB0QB] Family Dollar shares dropped 8.4 percent to $64.68.

SPX Corp shares fell 9.1 percent to $62.07 and the stock was the biggest percentage decliner on the New York Stock Exchange after sources said the company is in exclusive talks to buy rival Gardner Denver , in a merger that could create an industrial machinery conglomerate with a market value over $7 billion.

The U.S. Treasury is selling its remaining stake in insurer American International Group Inc . AIG's shares were up 5.7 percent at $35.26.

The Fed began a two-day policy-setting meeting on Tuesday. The central bank is expected to announce a new round of Treasury bond purchases when the meeting ends on Wednesday to replace its "Operation Twist" stimulus, which expires at the end of the year.

Advancers outnumbered decliners on the NYSE by about 2 to 1, and on the Nasdaq by nearly 9 to 4.

(Additional reporting by Gabriel Debenedetti; Editing by Kenneth Barry and Nick Zieminski)

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Kazakh Border Guard Sentenced in 15 Killings

MOSCOW — A military court in a remote city in eastern Kazakhstan sentenced a 20-year-old border guard to life in prison on Tuesday over the killings of 15 people, in a case that has drawn widespread skepticism of the authorities in the former Soviet state.

In May, 14 soldiers and a gamekeeper were killed in Arkankergen, in a mountain range on the Chinese border, and the soldiers’ outpost was burned. A few days later, the surviving young guard, Vladislav Chelakh, was found hiding nearby. Investigators said he confessed; prosecutors said he had been hazed.

However, the young man eventually said that investigators had threatened to torture him if he did not confess, and that smugglers had carried out the killings.

At first, the case reverberated through the Kazakh border guard service, forcing the resignation of its director and heaping attention on hazing and desertions at the far-flung outposts along Kazakhstan’s borders.

But while some Kazakhs called for harsh justice against Mr. Chelakh, many others doubted not only the authenticity of the confession but also other evidence provided by investigators and the security services.

An anchor for a national television station resigned rather than announce that investigators had found Mr. Chelakh and that he had confessed, saying that was “nonsense” and refusing to “lie on the air” about the case.

Proceedings in the case, which began last month, have progressed unevenly. Defense lawyers accused the Kazakh authorities of covering up the discovery of additional bodies near the outpost, but they then failed to provide evidence. At one point, Mr. Chelakh ripped a piece of plastic off a bench in the courtroom and tried to slit his wrists with it.

On Tuesday, as the trial concluded, Mr. Chelakh had to be physically restrained by two bailiffs. He tried to bite one of them, called them “beasts,” refused to make a closing statement and asked to be taken from the courtroom.

Mr. Chelakh’s mother said that she would press for an appeal.

“They should not believe that we have lost hope,” she said, according to the news service RIA Novosti. “I know that my son is innocent.”

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Obama election tweet most repeated but Olympics tops on Twitter

(Reuters) – An election victory tweet from President Barack Obama — “Four more years” with a picture of him hugging his wife — was the most retweeted ever, but the U.S. election was topped by the Olympics as the most tweeted event this year.

Obama’s tweet was retweeted (repeated) more than 810,000 times, Twitter said as it published a list of the most tweeted events in 2012. (http://2012.twitter.com/)

“Within hours, that Tweet simultaneously became the most retweeted of 2012, and the most retweeted ever. In fact, retweets of that simple message came from people in more than 200 countries around the world,” Twitter spokeswoman Rachael Horwitz said.

Twitter users were busiest during the final vote count for the presidential elections, sending 327,452 tweets per minute on election night on their way to a tally of 31 million election tweets for the day.

The 2012 Olympic Games in London had the most overall tweets of any event, with 150 million sent over the 16 days.

Usain Bolt’s golden win in the 200 meters topped 80,000 tweets per minute but he did not achieve the highest Olympic peak on Twitter. That was seen during the closing ceremony when 115,000 tweets per minute were sent as 1990s British pop band the Spice Girls performed.

Syria, where a bloody civil war still plays out, was the most talked about country in 2012 but sports and pop culture dominated the tally of tweets.

Behind Obama was pop star Justin Bieber. His tweet, “RIP Avalanna. i love you” sent when a six-year-old fan died from a rare form of brain cancer, was retweeted more than 220,000 times.

Third most repeated in 2012 was a profanity-laced tweet from Green Bay Packers NFL player TJ Lang, when he blasted a controversial call by a substitute referee officiating during a referee dispute. That was retweeted 98,000 times.

This was the third year running that the microblogging site published its top Twitter trends, offering a barometer to assess the biggest events in social media.

Superstorm Sandy, which slammed the densely populated U.S. East Coast in late October, killing more than 100 people, flooding wide areas and knocking out power for millions, attracted more than 20 million tweets between October 27 and November 1.

European football made the list of top tweets when Spain’s Juan Mata scored as his side downed Italy 4-0 in the Euro 2012 final — sparking 267,200 tweets a minute.

News of pop star Whitney Houston‘s death in February generated more than 10 million tweets, peaking at 73,662 per minute.

Romantic comedy “Think Like a Man” was the most tweeted movie this year, topping “The Hunger Games”, “The Avengers” and “The Dark Knight Rises.”

Rapper Rick Ross who notched his fourth No. 1 album on the Billboard 200 chart this year, was the most talked about music artist.

(Editing by Rodney Joyce)

Internet News Headlines – Yahoo! News

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Megan Fox 'Screamed for an Epidural' During Delivery

Mom & Babies
Celebrity Baby Blog

12/11/2012 at 05:00 PM ET

John Shearer/Invision/AP

When it came to welcoming her first child, Megan Fox was prepared for the delivery to be a labor of love.

But, one contraction later, and the actress’s dreams of being drug-free went out the window.

“It hurts so bad. It was so intense,” Fox, 26, told Access Hollywood during a press junket for her new movie, This is 40.

“And I thought I was gonna be really tough and make it, I was going to labor to eight centimeters … but the first contraction I got was horrific!”

And with the pain level shooting sky-high from the start, Fox wasn’t shy about voicing her demands for medication to husband Brian Austin Green.

“I was screaming for an epidural when [Brian] was driving me to the hospital because my water broke on its own and I was immediately — it was level orange pain alert,” she recalls.

But, despite the unbearable pain, the first-time mom wanted to feel (and look!) her best for her baby boy’s big arrival.

“I had wet hair so I was trying to blow dry my hair before I went to the hospital because I didn’t want to go to the hospital with wet hair,” she explains with a laugh.

Fortunately, all the pain — and primping! — paid off in a big way when the couple welcomed now 10-week-old Noah Shannon.

“It’s exhausting, but it’s amazing and you can’t — until you have kids — imagine how much you could possibly love a human being,” she shares of her “super cute” son.

“It’s really intense and really overwhelming and amazing.”

– Anya Leon

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Surprise: New insurance fee in health overhaul law

WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.

"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.

Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.

The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.

Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.

Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.

The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.

But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.

"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.

Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.

America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.

But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.

"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.

The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.

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