Wall Street dips as "fiscal cliff" fears outweigh data

NEW YORK (Reuters) - U.S. stocks fell slightly on Thursday, pulling back from six straight days of gains despite a batch of positive economic releases as "fiscal cliff" negotiations in Washington weighed on sentiment.


Weekly claims for jobless benefits dropped near the lowest level since February 2008 and retail sales rose in November after an October decline, improving the picture for consumer spending.


Best Buy Co shares shot up more than 18 percent after a report that the company's founder is expected to offer to buy the consumer electronics retailer by the end of the week.


Trading was constrained by the drawn-out fiscal talks between Democrats and Republicans. Investors worry that tax hikes and spending cuts set to begin in 2013 if a deal is not reached in Washington will hurt growth. Republican House Speaker John Boehner accused President Barack Obama of "slow-walking" the economy off the fiscal cliff.


"There's a lot of confusion. Nobody knows what's going to happen with the cliff," said Tom Schrader, managing director of U.S. equity trading at Stifel Nicolaus Capital Markets in Baltimore.


Despite the overarching concerns, the S&P 500 has managed gains for six sessions, touching its highest level since October 22 on Wednesday.


"I don't know if there's a lot of anticipation that they're going to get anything done, but the market doesn't seem too worried about it," Schrader said.


The Dow Jones industrial average <.dji> was down 9.35 points, or 0.07 percent, at 13,236.10. The Standard & Poor's 500 Index <.spx> lost 0.88 point, or 0.06 percent, at 1,427.60. The Nasdaq Composite Index <.ixic> rose 3.60 points, or 0.12 percent, at 3,017.41.


A day after the Federal Reserve announced a new round of stimulus for the economy, markets focused on Chairman Ben Bernanke's reiteration that monetary policy would not be sufficient to offset going over the fiscal cliff.


European Union finance ministers reached agreement to make the European Central Bank the bloc's top banking supervisor, which could boost confidence in EU leaders' ability to confront the euro zone's sovereign debt crisis.


CVS Caremark Corp gained 3.0 percent to $48.97 after saying it expects higher earnings in 2013.


Best Buy's stock was trading up $2.09 at $14.27 at midday.


Jobless claims dropped 29,000 to a seasonally adjusted 343,000, indicating healing in the labor market.


(Editing by Kenneth Barry)



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Facebook revises privacy controls in effort to make them more accessible, comprehensible






SAN FRANCISCO – Facebook is trying to make its privacy controls easier to find and understand in an effort to turn the world’s largest social network into a more discreet place.


The fine-tuning announced Wednesday will include several revisions that will start rolling out to Facebook Inc.‘s more than 1 billion users in the next few weeks.






The biggest change will be a new “privacy shortcuts” section that will appear as a tiny lock on the right-hand side at the top of people’s news feeds. This feature offers a drop-down box where users will be able to get answers to common questions such as “Who can see my stuff?”


Other updates will include a tool that will enable individuals to review all the publicly available pictures identifying them on Facebook.


Social Media News Headlines – Yahoo! News


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Want Megan Fox's Killer Body? Harley Pasternak Shares Her Workout






Celebrity Blog










12/12/2012 at 12:25 PM EST







Megan Fox with Brian Austin Green while pregnant, and last week in L.A.


GSI; Jon Kopaloff/FilmMagic


Lately I've been getting a lot of questions about Megan Fox and how incredible she looks only weeks after giving birth to her son. Megan, and her husband Brian Austin Green, have been clients of mine for years and may just be the fittest couple in Hollywood.

This week, I sat down with PEOPLE to answer some of those questions and share secrets to Megan's fit pregnancy and killer post-baby body.

How did Megan stay healthy throughout her pregnancy?
We worked out throughout her entire pregnancy. She was a model of health through the whole process. She really educated herself big time and had a great relationship with her physician so she really understood the safe boundaries of how to exercise and eat well during pregnancy. As a result, she knew how active she could be and she was very consistent and didn't overdo it.

As she progressed from trimester to trimester, we'd modify things. As a result, she was so fit at the point of delivery that it actually went more easily and she was able to get medical clearance relatively quickly to come back and keep working out.

How long after giving birth did she start working out?
Definitely within a few weeks she was able to come back and workout. We didn't start at full speed – we eased into it.

How did she train post-baby?
We used the exact same exercises as we did pre-baby. We just focused more on the process and adjusted our program to suit her specific needs and limitations. The workouts we did are like all of my other Five Factor workouts. They are five phases: a minimum five minute cardio warm-up, a lower body sculpting exercise, an upper body toning exercise, then an abdominal sculpting exercise, and finally, a five minute cool down. We tried to have her do minimal impact. Post-baby there shouldn't be a lot of jumping up and down.

On the days when she doesn't want to leave her baby and come to the gym to see me, she does my video game Harley Pasternak's Hollywood Workout. I actually developed it for a lot of my new mom clients from Jessica Simpson to Hilary Duff, Megan and Milla Jovovich. It's a great, intense workout.

A Sample Workout

Warm-up: Five minutes on the bike or treadmill

Lower Body: Skater lunge
Cross your right leg behind your left leg as you bend your left knee into a half-squat position. Extend your left arm out to the side and swing your right arm across your hips. Hop a few feet directly to the right, switching the position of your legs and arms. Repeat on opposite side.

Upper Body: Supine (lying down) triceps extension
Lie face up on a bench with your arms raised straight above you, a weight in each hand; slowly lower them to the sides of your forehead and repeat.

Abdominal Sculpting: Superman
Lay on your stomach with your legs and arms fully extended. Slowly, contract your lower back and raise your legs and arms off the ground. Then lower them back down.

Cool-down: Five minutes on stationary bike.

We do 20 repetitions of each upper body, lower body, and abs and cycle through those three exercises non-stop, repeating that circuit four times. Each day of the week she would come in and we'd do different body parts at least three days a week.

Post-baby, which is more important, exercise or diet? 
What's more important in a car, the gas or the tires? You need both. Megan and Brian eat really well. They both cook and love using their blender. They love my smoothie recipes! Megan's favorite is the red smoothie, which is whatever berries are in season, Chai tea, a scoop of protein powder and little bit of almond milk.

Check back every Wednesday for more insider tips from celebrity trainer Harley Pasternak on Hollywood's hottest bodies – and learn how to get one yourself! Plus: follow Harley on Twitter at @harleypasternak

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Congress examines science behind HGH test for NFL


WASHINGTON (AP) — A congressional committee has opened a hearing to examine the science behind a human growth hormone test the NFL wants to start using on its players.


Nearly two full seasons have passed since the league and the players' union signed a labor deal that set the stage for HGH testing.


The NFL Players Association won't concede the validity of a test that's used by Olympic sports and Major League Baseball, and the sides haven't been able to agree on a scientist to help resolve that impasse.


Among the witnesses before the House Oversight and Government Reform Committee on Wednesday is Pro Football Hall of Fame member Dick Butkus. In his prepared statement, Butkus writes: "Now, let's get on with it. The HGH testing process is proven to be reliable."


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Wall Street adds slight gains after Fed

DEAR ABBY: I have been married for 14 years to a man who had two failed marriages. I never felt insecure in my married life until I read his answers to a Yahoo Answers poll that asked, "Do you dream about the one that got away?" and, "Have you found the love of your life?"My husband responded that he thinks about her very often, especially on her birthday and Valentine's Day. To the other question he replied he had found the love of his life, but the relationship had ended in divorce, which he admitted was his fault.I know he was talking about his first wife. I feel so sad and insecure. ...
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IHT Rendezvous: Why Everyone Is So Certain About Hillary 2016

NEW YORK — The Hillary-in-2016 buzz has hit overdrive, and the political speculation game has gone viral. By ten o’clock Monday, I’d watched a variety of commentators on three cable news programs speculate, guess, opine and bet on the real and imaginary future of Hillary Rodham Clinton.

“Everyone’s in fear of Hillary,” said one anchor, announcing a “Hillary Watch.”

“Wait, it’s too early,” one female guest advised Hillary. “Don’t believe the hype.”

“There’s no limit to her potential,” crowed a partisan.

“It’s a coronation,” said another, meeting no contradiction.

A few hours of this chatter, and everyone is echoing each other, every segment similar to the one an hour earlier, but we keep listening, just in case something new drops in.

Some try to guess what brave soul in the currently down-at-the-mouth Republican Party would dare to come up against a world heroine like Hillary. (The secretary of state, who is leaving her job in January, has forged an incontestable global position, especially among women, as my latest Female Factor column attests.)

So who would face off against Hillary?

There’s Jeb Bush, the former governor of Florida who is known as “the good Bush,” a more people savvy and centrist politician than his brother, the former president. There’s Marco Rubio, the great Republican Hispanic hope, who may break ground as the first Latino presidential candidate. But can he beat Hillary? Really?

As for Vice President Joseph Biden, a onetime presidential candidate, few believe he would want to challenge her in a primary (a recent PPP poll said she would receive 58 percent of the vote in the Iowa Democratic caucuses, traditionally the first in the nation, while Mr. Biden trails far behind).

The way many Democrats and pundits see it is this: She declares her candidacy, and the waters part. That’s how far out they’re going on a limb.

Rampant guesswork — “she’s going to go off the grid” — is totally permissible, and fun. Being on a bandwagon like the one that’s off and roaring for Hillary is de rigueur. Pity the Republican (or clueless Democrat) who dares to suggest that she may not run at all. Buzz killer!

It’s a pretty diverse crew, this political class. There are serious, bespectacled veterans and graying pols and a raft of lilting-voiced, sharp-tongued and clip-talking thirty-somethings whose eyes are on the shining prize, a cable political show of their own. There are familiar bylines from major newspapers and magazines, and Washington authors and Beltway insiders.

Political chatter is an industry all its own. It is Washington’s obsession but it also infects power-mad New York, where politics meets fame, fashion and money.

An addictive parlor game, it’s played in front of millions of political fanatics, like me, who can’t resist tuning in and feasting on the dish. Like sports, politics offers plenty of opportunities to blow hard, to bet on the wrong team and to lose miserably.

But you can’t help playing the game, even when your speculation, usually tinged with certitude, is often dead wrong.

All the talk today about the 2016 election — a veritable thousand lifetimes away in politics — is a little crazy. But for political junkies this is the stuff of life. Not to know the latest on such a riveting and important figure like Hillary Clinton can prove embarrassing, not to say unforgivable, in a place like Washington that breathes that air and drinks that water.

So I’ve got to go. “Andrea Mitchell Reports” is coming on.

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Anne Hathaway Wears Bondage-Inspired Dress, Boots to Les Mis Premiere







Style News Now





12/11/2012 at 11:00 AM ET











Anne Hathaway Les Mis Dress
Rob Kim/FilmMagic


The lady is a vamp!


Anne Hathaway showed up to the Les Misérables premiere in New York City Monday night wearing what we can only call quite a dress. The black taffeta creation — reportedly by Tom Ford — featured a form-fitting front, sky-high slit (hello, Angelina!) and a parachute-like cape on the back.


The real showstopper, however, were Hathaway’s bondage-inspired boots, custom-made of faux leather because of the actress’s veganism, The Cut reports. The chain-like creations reached all the way to her thighs and featured tight paneling along the calves.


This look calls to mind the creativity of some of her other recent ensembles — her winged Givenchy Haute Couture dress and festooned navy gown — but with the severely slicked hair and dark lip, elevates her look to a new level.


We give Hathaway kudos for taking this look all the way to the edge, and can honestly say we can’t wait to see what she wears next. Tell us: What do you think of Hathaway’s look: hot or hot mess? Vote in our poll and leave your thoughts in the comments below! 






PHOTOS: SEE STARS’ DARING DRESSES FROM EVERY ANGLE!





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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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Tech shares, optimism on "cliff" propel Wall Street higher

NEW YORK (Reuters) - Technology shares led a 1 percent rise in major stock indexes on Tuesday, pushing the S&P 500 to its best levels since mid-October and erasing all of the post-election selloff.


The Nasdaq was lifted by a 3 percent gain in Apple Inc's stock to $545.37. The company's shares had dropped last week as investors took profits before a possible tax rise next year. Coming into Tuesday's trading, Apple shares had lost 25 percent from an all-time intraday high hit in September.


Other large tech stocks also rallied. Texas Instruments gained 3.5 percent to $30.88 after bumping up its profit target late Monday. That helped other chipmakers rally, with the PHLX Semiconductor index <.sox> up 1.9 percent.


"I see a lot of buying in tech, and that's taking the whole market up with it," said Tom Donino, co-head of trading at First New York Securities in New York.


The Dow Jones industrial average <.dji> rose 126.66 points, or 0.96 percent, at 13,296.54. The Standard & Poor's 500 Index <.spx> was up 14.55 points, or 1.03 percent, at 1,433.10. The Nasdaq Composite Index <.ixic> gained 44.40 points, or 1.49 percent, at 3,031.37.


Traders voiced cautious optimism as the pace of negotiations over the "fiscal cliff" quickened. However, representatives from both parties cautioned that an agreement remains uncertain.


"I guess in our own dysfunctional way, there is progress," said Frank Davis, director of sales and trading at LEK Securities in New York.


"Since conversations are occurring, it clarifies at least they are taking some action. My personal gut is they'll jostle this into the holiday week and try to do a last minute push."


Lawmakers worked toward a deal to avoid a series of automatic tax hikes and spending cuts that would hurt U.S. economic growth next year.


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


But stocks have steadily marched higher on thin volume. The S&P 500 surpassed 1433.38 on Tuesday, retracing losses in the first seven sessions after President Barack Obama's re-election.


A positive report from Goldman Sachs Equity Research pushed up shares in some retailers. Luggage maker Tumi Holding Inc. was up 4.8 percent to $21.94 and Michael Kors Holding gained 4 percent to $51.76.


The U.S. Treasury is selling its remaining stake in insurer American International Group Inc . AIG's shares were up 4.1 percent at $34.74.


Unexpected improvement in data out of Europe set the positive tone early. In Germany, analyst and investor sentiment rose sharply in December, entering positive territory for the first time since May, a leading survey showed.


The Fed began a 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.


(Editing by Kenneth Barry)



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Chávez Put Party Unity Before Another Cancer Surgery





LA PAZ, Bolivia — President Hugo Chávez of Venezuela has flown repeatedly to Cuba this year for cancer treatments, but the flight that took him back to Caracas on Friday may have been the most meaningful of all.




Mr. Chávez postponed emergency cancer surgery to return home, meet with his inner circle and announce on television on Saturday, for the first time, that he had picked the man he wanted to lead his socialist revolution when he is gone — something he seemed to suggest might come sooner than his millions of followers would hope.


He flew to Cuba again on Monday to prepare for surgery, news agencies reported. 


Mr. Chávez could well recover and remain a potent force, but on Saturday night he seemed intent on smoothing over factions within his party and solidifying support for the man he chose to succeed him, Vice President Nicolás Maduro.


Mr. Chávez, 58, spoke the word “unity” several times during Saturday’s somber, symbolically weighted appearance. To his left sat Mr. Maduro, and behind both of them viewers could see a bust of Mr. Chávez’s hero, the South American independence leader Simón Bolívar (who never realized his dream of unifying a fractious continent).


Mr. Chávez, a charismatic and polarizing leader who has crafted his own brand of socialist revolution in this oil-rich country, has been vague about the nature of his illness since it was first disclosed in June last year. Since then, he has had at least two operations, chemotherapy and radiation treatment. Yet he said on Saturday that doctors had once again found malignant cells, necessitating a new operation.


The fact that he chose to go home to put his political house in order and clear up the long-unresolved line of succession — rather than write about it on Twitter or report it by calling in to a government television show, as he so often has done with lesser policy decisions during his many medical absences — suggests that his doctors have told him that the news is not good.


“This is a huge passing of the torch,” said Javier Corrales, a political science professor at Amherst College.


Even if Mr. Chávez makes a strong recovery after his surgery, Mr. Corrales said, “there’s no question we are in the transition stage, and that’s always incredibly uncertain.”


Mr. Chávez, who has been president for nearly 14 years, was re-elected in October to another six years. His new term is to begin on Jan. 10.


But if he dies or cannot continue to govern before then, the Constitution states that the vice president, Mr. Maduro, would become president and finish out the last days of the current term.


If Mr. Chávez is unable to begin his new term, or if he leaves office within the first four years, then new elections would be called, according to the Constitution.


In that case, Mr. Chávez said on Saturday that he wanted Mr. Maduro to be his party’s candidate, and he asked his supporters to elect him.


“I ask it from my heart,” he said.


New elections could open the way for a new run by Henrique Capriles Radonski, a young state governor who opposed Mr. Chávez in October. Mr. Capriles received 44 percent of the vote and 6.5 million votes, far more than any previous candidate against Mr. Chávez.


But Mr. Capriles is now running a difficult race for re-election as governor of Miranda, which includes part of Caracas, the captial, and one of the country’s most populous states. The election is on Sunday.


He is being challenged by a former vice president, Elías Jaua, and the government and Mr. Chávez’s socialist party have made it a priority to defeat Mr. Capriles, hoping that it will weaken him politically and remove him as a threat.


“If Capriles loses, there will be a battle in the opposition, a struggle for power, and the leaders will call for a change,” said Luis Vicente León, a pollster close to the opposition.


Some polls taken earlier this year showed that Mr. Capriles could beat Mr. Maduro if they ran against each other.


But Mr. León said conditions had changed with Mr. Chávez’s endorsement of Mr. Maduro. If Mr. Chávez were to die or become too ill to continue in office, it could give Mr. Maduro’s candidacy an emotional boost, he said.


But Mr. Maduro, 50, will have difficulties of his own in having to rein in factions within Mr. Chávez’s party. That could include the military and former military officers to whom Mr. Chávez has given a major role in his government.


For the time being, Venezuelans can look forward to more uncertainty.


The country has been obsessed with Mr. Chávez’s illness since it was first revealed. It has been the source of endless speculation and conspiracy theories. Some people even insist that he is not sick and has invented the illness to throw his opponents off guard. His fiercest opponents see his cancer as a sign of hope that his days as president are numbered; his supporters insist that he will recover, and they condemn such grim speculation as necrophilia.


But the last announcement of his need for another surgery, coupled with his call to rally behind Mr. Maduro, takes the nervous focus on Mr. Chávez’s cancer and what it means for the country’s future to a new level.


Several hundred supporters of Mr. Chávez congregated on Sunday in Bolívar Plaza in central Caracas in what was an uncharacteristically subdued gathering, by the standards of his followers. But also on display was their quasi-religious connection with the president — and the refusal among many to acknowledge his mortality.


“He is going to overcome this difficult time,” said Israel Pérez, 32, a law student. “He will be with us forever.”


Nonetheless, would he support Mr. Maduro as Mr. Chávez’s replacement?


“Venezuelans would support any proposal the president asks them to,” Mr. Pérez said.


Andrew Rosati contributed reporting from Caracas, Venezuela.



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