Wall Street edges off five-year high, awaits earnings

NEW YORK (Reuters) - Stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.


Shares of financial companies dipped after a group of major U.S. banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures. The KBW bank index <.bkx>, a gauge of U.S. bank stocks, was down 0.3 percent.


Other sectors were hit as well, most notably energy and utilities. The S&P 500 energy sector index <.gspe> fell 0.8 percent and the utilities sector <.gspu> was off 1.1 percent.


The day's decline came a session after the S&P 500 finished at a five-year high, boosted by a budget deal and strong economic data. The S&P 500 rose 4.6 percent last week, the best weekly gain in more than a year.


"It's a little bit of taking some risk off the table ahead of profit season, you're not going to see anything all that great" on earnings, said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.


Earnings are expected to be only slightly better than the third-quarter's lackluster results, and analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings growth is expected to come in at 2.8 percent, according to Thomson Reuters data.


Aluminum company Alcoa Inc begins the reporting season by announcing its results after Tuesday's market close. Alcoa shares fell 1.7 percent at $9.10.


The Dow Jones industrial average <.dji> dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index <.spx> fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index <.ixic> lost 2.84 points, or 0.09 percent, to 3,098.81.


Ten mortgage servicers - including Bank of America , Citigroup , JPMorgan , and Wells Fargo - agreed on Monday to pay $8.5 billion to end a case-by-case review of foreclosures required by U.S. regulators.


In a separate case, Bank of America also announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans.


The bank also entered into agreements with Nationstar Mortgage Holdings and Walter Investment Management to sell about $306 billion of residential mortgage servicing rights.


Bank of America shares lost 0.2 percent at $12.09 while Nationstar Mortgage Holdings jumped 16.8 percent to $38.83.


Citigroup shares were up 0.09 percent to $42.47, and Wells Fargo shares fell 0.5 percent to $34.77.


"The financials probably have the wind behind them now with a lot of the regulations coming out ... the market has to absorb a lot of the gains, and for that reason there's a pullback from this level," said Warren West, principal at Greentree Brokerage Services in Philadelphia.


Shares of U.S. jet maker Boeing Co dropped 2 percent after a Boeing 787 Dreamliner aircraft with no passengers on board caught fire at Boston's Logan International Airport on Monday morning.


Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised is rating on the stock. Shares were up 3.6 percent at $268.46.


Video-streaming service Netflix Inc shares gained 3.4 percent to $99.20 after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.


Walt Disney Co stock fell 2.3 percent to $50.97. The company started an internal cost-cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.


Volume was lower than average, as 4.78 billion shares were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. This is well below the 2012 average of 6.42 billion per session.


Declining stocks outnumbered advancing ones on the NYSE by 1,629 to 1,363, while on the Nasdaq decliners beat advancers 1,438 to 1,066.


(Reporting By Gabriel Debenedetti; Editing by Kenneth Barry and Nick Zieminski)



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Love 'em or hate 'em, all eyes on Tide and Irish


MIAMI (AP) — Love 'em or hate 'em, it's hard to turn away from Notre Dame and Alabama.


They are storied programs that stir plenty of passions, college football's North and South versions of the New York Yankees.


Well, now they're facing each other for the biggest prize of all.


A national championship.


"Having those two traditions come together in a game like this certainly creates a lot of national interest," said Alabama coach Nick Saban, "which is probably really good for college football."


Indeed, this was shaping up as one of the most anticipated games in years, a throwback to the era when coaching giants named Bear and Ara ruled the sidelines, when it was a big deal for teams from different parts of the country to meet in a bowl, when everyone took sides based on where they happened to live.


"I'm pretty aware of our history. I've become more aware of theirs over the past few months," said Barrett Jones, the Crimson Tide's All-American center. "I know that they are a very storied program. We both are. I think that's part of what makes this matchup fun."


ESPN executives were hopeful of getting the highest ratings of the BCS era. Tickets were certainly at a premium, with a seat in one of the executive suites going for a staggering $60,000 on StubHub the day before the game, and even a less-than-prime spot in the corner of the upper deck requiring a payout of more than $900.


"This is, to me, the ultimate matchup in college football," said Brent Musberger, the lead announcer for ESPN.


For Alabama (12-1), this is a chance to be remembered as a full-fledged dynasty. The Tide will be trying to claim its third national championship in four years and become the first school to win back-to-back BCS titles, a remarkable achievement given the ever-increasing parity of the college game and having to replace five players from last year's title team who were picked in the first two rounds of the NFL draft.


"To be honest, I think this team has kind of exceeded expectations," Saban said Sunday. "If you look at all the players we lost last year, the leadership that we lost ... I'm really proud of what this team was able to accomplish."


That said, it's not a huge surprise to find Alabama playing for another title. That's not the case when it comes to Notre Dame.


Despite their impressive legacy, the Fighting Irish (12-0) weren't even ranked at the start of the season. But overtime wins against Stanford and Pittsburgh, combined with three other victories by a touchdown or less, gave Notre Dame a shot at its first national title since 1988.


After so many lost years, the golden dome has reclaimed its luster in coach Brian Kelly's third season.


This is the beginning, he said.


"Playing in this game is an incredible springboard into the next season," Kelly said. "They've already been here. You come back the next year, it's unacceptable for a standard to be any less than being back here again."


Both Notre Dame and Alabama have won eight Associated Press national titles, more than any other school. They are the bluest of the blue bloods, the programs that have long set the bar for everyone else even while enduring some droughts along the way.


Kelly molded Notre Dame using largely the same formula that has worked so well for Saban in Tuscaloosa: a bruising running game and a stout defense, led by Heisman Trophy finalist Manti Te'o.


"It's a little bit old fashioned in the sense that this is about the big fellows up front," Kelly said. "It's not about the crazy receiving numbers or passing yards or rushing yards. This is about the big fellas, and this game will unquestionably be decided up front."


While points figure to be at a premium given the quality of both defenses, Alabama appears to have a clear edge on offense. The Tide has the nation's highest-rated passer (AJ McCarron), two 1,000-yard rushers (Eddie Lacy and T.J. Yeldon), a dynamic freshman receiver (Amari Cooper), and three linemen who made the AP All-America team (first-teamers Jones and Chance Warmack, plus second-teamer D.J. Fluker).


"That's football at its finest," said Te'o, who heads a defense that has given up just two rushing touchdowns. "It's going to be a great challenge, and a challenge that we look forward to."


The Crimson Tide had gone 15 years without a national title when Saban arrived in 2007, the school's fifth coach in less than a decade (including one, Mike Price, who didn't even made it to his first game in Tuscaloosa). Finally, Alabama got it right.


In 2008, Saban landed one of the greatest recruiting classes in school history, a group that has already produced eight NFL draft picks and likely will send at least three more players to the pros. The following year, he guided Alabama to a perfect season, beating Texas in the title game at Pasadena.


Last season, the Tide fortuitously got a shot at another BCS crown despite losing to LSU during the regular season and failing to even win its division in the Southeastern Conference. In a rematch against the Tigers, Alabama romped to a 21-0 victory at the Superdome.


The all-SEC matchup gave the league an unprecedented six straight national champions, hastening the end of the BCS. It will last one more season before giving way to a four-team playoff in 2014, an arrangement that was undoubtedly pushed along by one conference hoarding all the titles under the current system.


"Let's be honest, people are probably getting tired of us," Jones said. "We don't really mind. We enjoy being the top dog and enjoy kind of having that target on our back, and we love our conference. Obviously, we'd rather not be a part of any other conference."


The schools have played only six times, and not since 1987, but the first of their meetings is still remembered as one of the landmark games in college football history. Bear Bryant had one of his best teams at the 1973 Sugar Bowl, but Ara Parseghian and the Fighting Irish claimed the national title by knocking off top-ranked Alabama 24-23.


If you're a longtime Notre Dame fan, you still remember Parseghian's gutty call to throw the ball out of the end zone for a game-clinching first down. If you were rooting for the Tide, you haven't forgotten a missed extra point that turned out to be the losing margin.


Of course, these Alabama players aren't concerned about what happened nearly four decades ago.


For the most part, all they know is winning.


"You want to be remembered for something," defensive lineman Damion Square said. "You live life to be remembered and do great things so that you can leave a legacy here when you're gone."


___


Follow Paul Newberry on Twitter at www.twitter.com/pnewberry1963


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Warm winter weather chills natural gas prices






NEW YORK (AP) — Winter officially began only a little more than two weeks ago, but already the mild weather is leading some analysts to scale back their predictions for natural gas prices, just when they might otherwise rise with the season.


Strong U.S. production has held down gas prices, prompting utilities to switch some generation from coal to gas.






Raymond James energy analyst J. Marshall Adkins said Monday that natural gas prices “still look like a train wreck through mid-year.”


Adkins lowered his forecast of average 2013 prices to $ 3.25 per thousand cubic feet of gas, down from an earlier forecast of $ 3.75. That would still be about 45 cents higher than last year, but not enough to be bullish on the stocks — the analyst has no “strong buy” recommendations among exploration and production companies.


“After a mixed 2012, don’t expect big energy stock gains in 2013,” he wrote in a note that also covered oil producers.


Jefferies & Co. cut its first-quarter gas-price call to $ 3.60 from $ 3.75 and raised its prediction for end-of-winter inventory levels.


Jefferies analyst Subash Chandra said the forecasts of more mild weather in January and more competition from hydroelectric power in the West were bearish signs for gas prices and inventories.


Natural gas futures were at $ 3.27 Monday afternoon in New York.


Gas prices could rise before the end of winter, as some weather forecasters see much colder weather later this month for a large swath of the U.S.


In afternoon trading, shares of Chesapeake Energy Corp. rose 20 cents to $ 17.60; Devon Energy Corp. rose 4 cents to $ 54.62; EOG Resources Inc. gained 14 cents to $ 125.94; Apache Corp. fell $ 2.65, or 3.2 percent, to $ 80.55; Anadarko Petroleum Corp. lost 35 cents to $ 77.92; and Exxon Mobil Corp., better known for oil but also a big gas producer, fell $ 1.33 to $ 87.63.


Energy News Headlines – Yahoo! News





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Many French aghast at Depardieu exit






STORY HIGHLIGHTS


  • Russian President Vladimir Putin has bestowed Russian citizenship on actor Gérard Depardieu

  • For Depardieu, a public war of words erupted, with many in France disgusted by his move

  • Depardieu more than anyone, represents the Gallic spirit, says Agnes Poirier

  • Majority of French people disapprove of his action but can't help loving him, she adds




Agnes Poirier is a French journalist and political analyst who contributes regularly to newspapers, magazines and TV in the UK, U.S., France, Italy. Follow her on Twitter.


Paris (CNN) -- Since the revelation on the front page of daily newspaper Libération, on December 11, with a particularly vicious editorial talking about France's national treasure as a "former genius actor," Gérard Depardieu's departure to Belgium, where he bought a property just a mile from the French border, has deeply divided and saddened France. Even more so since, as we have learnt this week, Russian President Vladimir Putin has bestowed the actor Russian citizenship.


Read more: Depardieu's puzzling love for Russia


Back in mid-December, the French media operated along political lines: the left-wing press such as Libération couldn't find strong enough words to describe Depardieu's "desertion" while right-wing publications such as Le Figaro, slightly uneasy at the news, preferred to focus on President François Hollande's punishing taxes which allegedly drove throngs of millionaires to seek tax asylum in more fiscally lenient countries such as Belgium or Britain. Le Figaro stopped short of passing moral judgement though. Others like satirical weekly Charlie hebdo, preferred irony. Its cover featured a cartoon of the rather rotund-looking Depardieu in front of a Belgian flag with the headline: "Can Belgium take the world's entire load of cholesterol?" Ouch.


Quickly though, it became quite clear that Depardieu was not treated in the same way as other famous French tax exiles. French actor Alain Delon is a Swiss resident as is crooner-rocker Johnny Halliday, and many other French stars and sportsmen ensure they reside for under six months in France in order to escape being taxed here on their income and capital. Their move has hardly ever been commented on. And they certainly never had to suffer the same infamy.


Read more: Actor Depardieu makes Russia trip after accepting citizenship



Agnes Poirier

Agnes Poirier



For Depardieu, a public war of words erupted. It started with the French Prime Minister Jean-Marc Ayrault, and many members of his government, showing their disdain, and talking of Depardieu's "pathetic move." In response the outraged actor penned an open letter to the French PM in which he threatened to give back his French passport.


The backlash was not over. Fellow thespian Phillipe Torreton fired the first salvo against Depardieu in an open letter published in Libération, insulting both Depardieu's protruding physique and lack of patriotism: "So you're leaving the ship France in the middle of a storm? What did you expect, Gérard? You thought we would approve? You expected a medal, an academy award from the economy ministry? (...)We'll get by without you." French actress Catherine Deneuve felt she had to step in to defend Depardieu. In another open letter published by Libération, she evoked the darkest hours of the French revolution. Before flying to Rome to celebrate the New Year, Depardieu gave an interview to Le Monde in which he seemed to be joking about having asked Putin for Russian citizenship. Except, it wasn't a joke.


Read more: French star Depardieu ditches France for Putin's Russia


In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit. He has been Cyrano, he has been Danton; he, better than most, on screen and off, stands for what it means to be French: passionate, sensitive, theatrical, and grandiose. Ambiguous too, and weak in front of temptations and pleasures.



In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit
Hugh Miles



For more than two weeks now, #Depardieu has been trending on French Twitter. Surveys have showed France's dilemma: half the French people understand him but there are as many who think that paying one's taxes is a national duty. In other words, a majority of French people disapprove of his action but can't help loving the man.


Read more: Paris promises flurry of economic reforms


Putin's move in granting the actor Russian citizenship has exacerbated things. And first of all, it is a blow to Hollande who, it was revealed, had a phone conversation with Depardieu on New Year's Day. The Elysées Palace refused to communicate on the men's exchange. A friend of the actor declared that Depardieu complained about being so reviled by the press and that he was leaving, no matter what.


If, in their hearts, the French don't quite believe Depardieu might one day settle in Moscow and abandon them, they feel deeply saddened by the whole saga. However, with France's former sex symbol Brigitte Bardot declaring that she too might ask Putin for Russian citizenship to protest against the fate of zoo elephants in Lyon, it looks as if the French may prefer to laugh the whole thing off. Proof of this: the last trend on French Twitter is #IWantRussianCitizenship.


Read more: Brigitte Bardot threatens to spurn France, embrace Russia if 2 elephants killed


The opinions expressed in this commentary are solely those of Agnes Poirier.






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No vote on Illinois House pension plan today









SPRINGFIELD—





The Illinois House adjourned for the day without voting on a major government worker pension overhaul, casting grave doubt on the reform plan's fate.


The bill passed out of a committee earlier today, but proponents are still trying to round up enough votes to get it out of the full House.





The clock is ticking down until a new legislature is sworn in Wednesday. The Senate is not in town, and it's unclear whether enough lame-duck senators would return to vote on a pension plan even if it passed the House.


The House will return at 11 a.m. Tuesday.


"Sponsors will continue to work to find the votes and move the bill forward," said Ryan Keith, a spokesman for Democratic Reps. Elaine Nekritz of Northbrook and Daniel Biss of Evanston.


Earlier today, the plan won approval from a House committee. Workers would chip in more from their paychecks and automatic cost-of-living increases would be reined in for retirees under the proposal. Retirees would not get automatic annual inflation bumps until age 67 and cost-of-living increases would be frozen for six years.


The legislation emerged as the most comprehensive pension overhaul for government workers to reach the House floor with bipartisan support since estimates of the nation's worst-funded retirement system hit $96.8 billion. The proposal moved to the full House on a 6-3 vote.


Rank-and-file state workers, university employees, legislators, and suburban and downstate public school teachers and retirees would be impacted.


Sponsoring Rep. Elaine Nekritz called for action because the state's pension finances are "in crisis." She said the proposal is not the "ideal solution" but represented a solid compromise that lawmakers can pass before a new legislature is sworn in Wednesday.


"The choice is clear. The time is now," Nekritz testified in the House hearing. Failing to act would mean less money for schools, health care, social services and other state operations, she said.


House Republican leader Tom Cross of Oswego hailed Nekritz and Rep. Dan Biss, D-Evanston, for jump-starting a "give-and-take process" that has resulted in a "very good product" that will lower the debt by $30 billion.


"This is not going to get better, the economy will not save it and it's got to be fixed," said Cross, who threw his support behind the bill after working two years for pension reform. "This is something that has to happen."


He warned that the state must act or its already-poor credit ratings will drop farther and it will cost Illinois more to borrow money. Businesses already are wary about staying or moving to Illinois because of the uncertainty over the state's financial albatross, and workers deserve to know the fate of their pension plans, he said.


Cross said the state pension systems are only 39 percent funded and "it's not getting any better" because the state is on the hook for nearly $7 billion a year in pension payments ---nearly a quarter of the state's overall operating budget.


Biss maintained it is the only bipartisan legislation that has come forth that "truly solves theproblem" and has a "rationale, sensible framework."


In stark disagreement, Michael Carrigan, president of the Illinois AFL-CIO and a leader in a coalition of unions fighting the changes, maintained the pension proposal would disenfranchise people who have made their payments over the years and "played by the rules." 


Proponents maintained the proposal would be constitutional, but opponents maintained it represented "an all-out assault on employees" and a violation of the state charter's ban on diminishing benefits once they are given.


Illinois Federation of Teachers President Dan Montgomery charged lawmakers would violate their oaths of office if they supported the "illegal plan" and urged them to follow the "better angels of your nature."


Henry Bayer, who heads the union representing the most state workers, contended the measure "shifts costs away from state and onto the backs" of public workers and retirees.


The plan represented a "Tea Party approach" of "cut, cut, cut," said Bayer, executive director of the American Federation of State, County and Municipal Employees Council 31.


Among the key features of the House plan is a freeze on cost-of-living increases for all workers and retirees for as long as six years. Once the cost-of-living bumps resume, they would apply only to the first $25,000 of pensions. The inflation adjustments also would not be awarded until a person hits 67, a major departure  public employees who have been allowed to retire much earlier in some cases and begin reaping the benefits of the annual increases immediately.


Under the proposal, employee contributions to pensions would increase 1 percentage point the first year and 1 percentage point the second year. A lid would be put on the size of the pensionable salary based on a Social Security wage base or their current salary, whichever is higher.


The goal is to put in place a 30-year plan that would fully fund the Illinois pension systems


Even if the House plan passes, the Senate would have to come back to the Capitol Tuesday or early Wednesday to vote on it. It's unclear how many senators would return for such a vote and whether Senate President John Cullerton, D-Chicago, would help pass it. Cullerton prefers his own plan that he says would pass constitutional muster.





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Five accused in India rape case charged in court


NEW DELHI (Reuters) - Five men accused of raping and murdering an Indian student were read the charges in a near-empty courtroom on Monday after the judge cleared out lawyers for bickering over whether the men deserved a defense.


The 23-year-old physiotherapy student died two weeks after being gang-raped and beaten on a moving bus in New Delhi, then thrown bleeding onto the street. Protests followed, along with a fierce public debate over police failure to stem rampant violence against women.


With popular anger simmering against the five men and a teenager accused in the case, most lawyers in the district where the trial will be held refuse to represent them.


Before the men arrived for a pre-trial hearing on Monday, heckling broke out in a chamber packed with jostling lawyers, journalists and members of the public after two of the lawyers, Manohar Lal Sharma and V. K. Anand, offered to defend the men.


"We are living in a modern society," declared Lal Sharma, defending his decision. "We all are educated. Every accused, including those in brutal offences like this, has the legal right ... to defend themselves."


One woman lawyer prodded V. K. Anand in the chest, saying: "I'll see how you can represent the accused."


Unable to restore order, presiding magistrate Namrita Aggarwal ordered everyone to leave except the prosecution, and set police to guard the entrance.


She said the trial would now be held behind closed doors because of the sensitivity of the case.


FACES COVERED


Reuters video images showed the men stepping out of a blue police van that brought them from Tihar jail and walking, their faces covered, through a metal detector into the South Delhi court building.


The court was across the street from the cinema where the victim watched a film before she was attacked on her way home.


Aggarwal gave the men copies of the charges, which include murder, rape and abduction, a prosecutor in the case told Reuters.


Police have conducted extensive interrogations and say they have recorded confessions, even though the men have no lawyers.


If the men, most of them from a slum neighborhood, cannot arrange a defense, the court will offer them legal aid before the trial begins.


Two of them, Vinay Sharma and Pawan Gupta, have offered to give evidence against the others - Mukesh Kumar, Ram Singh and Akshay Thakura - possibly in return for a lighter sentence.


Mohan, describing what he called a heinous crime, said: "The five accused persons deserve not less than the death penalty."


The case has sharpened long-standing anger against the government and police for a perceived failure to protect women.


A male friend who was assaulted with the woman on December 16 said on Friday that passers-by left her unclothed and bleeding in the street for almost an hour and that, when police arrived, they spent a long time arguing about where to take them.


The woman lived for two weeks after her attack, dying in a Singapore hospital where she had been taken for treatment.


FAST-TRACK COURT


Aggarwal said the next hearing would be on January 10. The case is due to move later to another, fast-track court set up since the woman was attacked to help reduce a backlog of sex crime cases in Delhi.


Legal experts say the lack of representation for the five men may give grounds for appeal if they are found guilty. Convictions in similar cases have often been overturned years later.


Some legal experts have also warned that previous attempts to fast-track justice in India in some cases led to imperfect convictions that were later challenged.


The sixth member of the group alleged to have lured the student and a male friend into the private bus is under 18 and will be tried in a separate juvenile court.


The government is aiming to lower the age at which teenagers can be tried as adults, acknowledging public anger that the boy will face a maximum three-year sentence.


The victim was identified by a British newspaper at the weekend but Reuters has opted not to name her.


Indian law generally prohibits the identification of victims of sex crimes. The law is intended to protect victims' privacy and keep them out of the glare of media in a country where the social stigma associated with rape can be devastating.


The dead woman's father repeated on Monday that he wanted her identified and said he would be happy to release a photograph of her.


"We don't want to hide her identity. There is no reason for that. The only condition is it should not be misused," he told Reuters.


He said he was confident the trial would be quick and reiterated a call that the perpetrators be hanged.


(Writing by Frank Jack Daniel; Editing by Robert Birsel and Tom Pfeiffer)



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"Cliff" concerns give way to earnings focus

NEW YORK (Reuters) - Investors' "fiscal cliff" worries are likely to give way to more fundamental concerns, like earnings, as fourth-quarter reports get under way next week.


Financial results, which begin after the market closes on Tuesday with aluminum company Alcoa , are expected to be only slightly better than the third-quarter's lackluster results. As a warning sign, analyst current estimates are down sharply from what they were in October.


That could set stocks up for more volatility following a week of sharp gains that put the Standard & Poor's 500 index <.spx> on Friday at the highest close since December 31, 2007. The index also registered its biggest weekly percentage gain in more than a year.


Based on a Reuters analysis, Europe ranks among the chief concerns cited by companies that warned on fourth-quarter results. Uncertainty about the region and its weak economic outlook were cited by more than half of the 25 largest S&P 500 companies that issued warnings.


In the most recent earnings conference calls, macroeconomic worries were cited by 10 companies while the U.S. "fiscal cliff" was cited by at least nine as reasons for their earnings warnings.


"The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome," said Kurt Winters, senior portfolio manager for Whitebox Mutual Funds in Minneapolis.


Negative-to-positive guidance by S&P 500 companies for the fourth quarter was 3.6 to 1, the second worst since the third quarter of 2001, according to Thomson Reuters data.


U.S. lawmakers narrowly averted the "fiscal cliff" by coming to a last-minute agreement on a bill to avoid steep tax hikes this weeks -- driving the rally in stocks -- but the battle over further spending cuts is expected to resume in two months.


Investors also have seen a revival of worries about Europe's sovereign debt problems, with Moody's in November downgrading France's credit rating and debt crises looming for Spain and other countries.


"You have a recession in Europe as a base case. Europe is still the biggest trading partner with a lot of U.S. companies, and it's still a big chunk of global capital spending," said Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York.


Among companies citing worries about Europe was eBay , whose chief financial officer, Bob Swan, spoke of "macro pressures from Europe" in the company's October earnings conference call.


REVENUE WORRIES


One of the biggest worries voiced about earnings has been whether companies will be able to continue to boost profit growth despite relatively weak revenue growth.


S&P 500 revenue fell 0.8 percent in the third quarter for the first decline since the third quarter of 2009, Thomson Reuters data showed. Earnings growth for the quarter was a paltry 0.1 percent after briefly dipping into negative territory.


On top of that, just 40 percent of S&P 500 companies beat revenue expectations in the third quarter, while 64.2 percent beat earnings estimates, the Thomson Reuters data showed.


For the fourth quarter, estimates are slightly better but are well off estimates for the quarter from just a few months earlier. S&P 500 earnings are expected to have risen 2.8 percent while revenue is expected to have gone up 1.9 percent.


Back in October, earnings growth for the fourth quarter was forecast up 9.9 percent.


In spite of the cautious outlooks, some analysts still see a good chance for earnings beats this reporting period.


"The thinking is you need top line growth for earnings to continue to expand, and we've seen the market defy that," said Mike Jackson, founder of Denver-based investment firm T3 Equity Labs.


Based on his analysis, energy, industrials and consumer discretionary are the S&P sectors most likely to beat earnings expectations in the upcoming season, while consumer staples, materials and utilities are the least likely to beat, Jackson said.


Sounding a positive note on Friday, drugmaker Eli Lilly and Co said it expects profit in 2013 to increase by more than Wall Street had been forecasting, primarily due to cost controls and improved productivity.


(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)



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Redskins lead Seattle 14-0 after 1st quarter


LANDOVER, Md. (AP) — Robert Griffin III threw two 4-yard touchdown passes in his first career playoff game to give the Washington Redskins a 14-0 lead over the Seattle Seahawks after the first quarter of their NFC wild-card game.


Griffin capped the Redskins' only two drives of the quarter against the NFL's top-rated defense with short tosses to running back Evan Royster and tight end Logan Paulsen. The Seahawks finished first in scoring defense, allowing 15.3 points per game


Griffin was 6 of 9 for 68 yards and ran three times for 12 yards. On the second drive, the rookie fell awkwardly while backpedaling on a pass and came up limping. He sprained his right knee in Week 14 and has sported a brace over the last three games.


Rookie Alfred Morris, the league's second-leading rusher, had 49 yards — 34 of them on four carries during Washington's opening drive that resulted in the TD pass to Royster.


Paulsen's touchdown catch finished of an 11-play, 54-yard drive in 5:58.


Seattle was moving the ball in the first quarter, but a promising drive ended when the Redskins' Stephen Bowen and London Fletcher combined to sack rookie quarterback Russell Wilson on third-and-2. It was one of two sacks for the Redskins in the quarter.


The playoff meeting between the two teams was the third, but first outside Seattle. The Seahawks won 20-10 in January 2006, and 35-14 in January 2008. Those were the last two postseason games played by the Redskins, who entered the playoffs riding an NFC-best seven-game winning streak.


Seattle has won five straight, outscoring opponents 193-60, but finished the season with a 3-5 road record and has lost eight straight road playoff games. Their only road playoff win came in its first postseason road game, Dec. 31, 1983 at Miami. The streak is the second longest in the NFL behind Detroit.


Washington, NFC East champions and No. 4 seed in the conference, became the first team since the Jaguars in 1996 to reach playoffs after starting 3-6. The Redskins went worst-to-first after finishing last in division for four straight years.


This was the second playoff game in NFL history with two starting rookie quarterbacks. Last year in the first-ever rookie QB meeting, T.J. Yates led the Texans to 31-10 victory over Andy Dalton and the Bengals.


Wilson tied Peyton Manning's 1998 NFL rookie record with 26 touchdown passes. Griffin set the league mark for yards rushing by a rookie quarterback (815) and had the best single-season rookie passer rating in NFL history (102.4), followed by Wilson (100).


Seahawks starting CB Brandon Browner and Redskins CB Cedric Griffin returned from four-game suspension for failing a drug test.


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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Weather disrupts Shell efforts to free Alaska oil rig






ANCHORAGE, Alaska (Reuters) – The U.S. Coast Guard and Shell were making fresh preparations on Sunday to tow a grounded Alaska oil rig, saying crews would keep trying to connect a tow line after rough weather prevented their efforts all Saturday.


According to a news release from the unified grounding response team, the aim, once the conditions are right, is to tow the rig to a sheltered bay nearby so experts can make a better assessment of its sea worthiness.






Officials have declined to speculate on the exact timing of the removal of the Kulluk from the rocky coast of tiny Sitkalidak Island, though a senior Shell executive said last week he believed it was a matter of days.


The fortunes of the grounded drillship, which started a well in the Beaufort Sea late last year, face particular scrutiny because it was a key part of Royal Dutch Shell‘s controversial and error-prone 2012 Arctic drilling program.


Sean Churchfield, Shell’s Alaska ventures manager, said salvage teams have found no signs of breaches to any of the Kulluk’s fuel tanks and only one area where seawater leaked onboard. A tow plan has been approved by government regulators.


“According to naval architects, the vessel is sound and fit to tow,” Churchfield said at a news conference late on Saturday.


All that is left, said Coast Guard Captain Paul Mehler, is to await the right combination of tides and weather, as well as equipment that still needs to be delivered.


“We want to get this off as soon as we can. And we’re looking at the best tides, the best opportunities,” Mehler said. “As I stand here today, we don’t have it all.”


The Kulluk went aground in a Gulf of Alaska storm on December 31 after the ship towing it lost power and its tow connection in the Kodiak archipelago – far from where it began a well in September and October. The rig was headed for maintenance near Seattle.


The removal plan is to pull the Kulluk about 30 miles to Kiliuda Bay, a site previously designated as a refuge for disabled vessels. Whether it continues on for its maintenance work will be determined after the assessment, Churchfield said.


The rig has about 155,000 gallons of diesel fuel and other petroleum products aboard, none of which has spilled, state environmental regulators said.


The Aiviq, the vessel that lost power and its tow connection to the Kulluk a week ago, is the ship designated to tow it to safe refuge. An investigation into its failures is not yet complete, Churchfield said.


Alaska environmentalist Rick Steiner questioned Shell’s reliance on the Aiviq, and believed all the problems with the Kulluk and its other contracted drillship, the Noble Corp-owned Discoverer, would preclude any drilling this year. “The 2013 season is on the rocks in Kodiak with the Kulluk,” he said.


Shell officials in Alaska have so far declined to comment on the upcoming Arctic drilling season.


Prior to the Kulluk accident, Shell’s main problem in Alaska was the Discoverer, which was assigned to Chukchi Sea work.


The Discoverer failed to meet federal air standards, which prompted Shell in June to ask the Environmental Protection Agency for a permit with looser limits for air pollution. In September, the ship dragged its anchor in the Aleutian port of Dutch Harbor and nearly grounded on the beach there.


After completing a truncated 2012 drill season in the Chukchi, the Discoverer was temporarily detained by the Coast Guard in the port of Seward, Alaska. The Coast Guard cited numerous safety and environmental-systems deficiencies, which Shell and Noble vowed to fix before the summer season began.


(Reporting by Yereth Rosen; Editing by Braden Reddall and Tim Dobbyn)


Weather News Headlines – Yahoo! News





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Storm over Depardieu's 'pathetic' move






STORY HIGHLIGHTS


  • Russian President Vladimir Putin has bestowed Russian citizenship on actor Gérard Depardieu

  • For Depardieu, a public war of words erupted, with many in France disgusted by his move

  • Depardieu more than anyone, represents the Gallic spirit, says Agnes Poirier

  • Majority of French people disapprove of his action but can't help loving him, she adds




Agnes Poirier is a French journalist and political analyst who contributes regularly to newspapers, magazines and TV in the UK, U.S., France, Italy. Follow her on Twitter.


Paris (CNN) -- Since the revelation on the front page of daily newspaper Libération, on December 11, with a particularly vicious editorial talking about France's national treasure as a "former genius actor," Gérard Depardieu's departure to Belgium, where he bought a property just a mile from the French border, has deeply divided and saddened France. Even more so since, as we have learnt this week, Russian President Vladimir Putin has bestowed the actor Russian citizenship.


Back in mid-December, the French media operated along political lines: the left-wing press such as Libération couldn't find strong enough words to describe Depardieu's "desertion" while right-wing publications such as Le Figaro, slightly uneasy at the news, preferred to focus on President François Hollande's punishing taxes which allegedly drove throngs of millionaires to seek tax asylum in more fiscally lenient countries such as Belgium or Britain. Le Figaro stopped short of passing moral judgement though. Others like satirical weekly Charlie hebdo, preferred irony. Its cover featured a cartoon of the rather rotund-looking Depardieu in front of a Belgian flag with the headline: "Can Belgium take the world's entire load of cholesterol?" Ouch.


Quickly though, it became quite clear that Depardieu was not treated in the same way as other famous French tax exiles. French actor Alain Delon is a Swiss resident as is crooner-rocker Johnny Halliday, and many other French stars and sportsmen ensure they reside for under six months in France in order to escape being taxed here on their income and capital. Their move has hardly ever been commented on. And they certainly never had to suffer the same infamy.



Agnes Poirier

Agnes Poirier



For Depardieu, a public war of words erupted. It started with the French Prime Minister Jean-Marc Ayrault, and many members of his government, showing their disdain, and talking of Depardieu's "pathetic move." In response the outraged actor penned an open letter to the French PM in which he threatened to give back his French passport.


The backlash was not over. Fellow thespian Phillipe Torreton fired the first salvo against Depardieu in an open letter published in Libération, insulting both Depardieu's protruding physique and lack of patriotism: "So you're leaving the ship France in the middle of a storm? What did you expect, Gérard? You thought we would approve? You expected a medal, an academy award from the economy ministry? (...)We'll get by without you." French actress Catherine Deneuve felt she had to step in to defend Depardieu. In another open letter published by Libération, she evoked the darkest hours of the French revolution. Before flying to Rome to celebrate the New Year, Depardieu gave an interview to Le Monde in which he seemed to be joking about having asked Putin for Russian citizenship. Except, it wasn't a joke.


In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit. He has been Cyrano, he has been Danton; he, better than most, on screen and off, stands for what it means to be French: passionate, sensitive, theatrical, and grandiose. Ambiguous too, and weak in front of temptations and pleasures.



In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit
Hugh Miles



For more than two weeks now, #Depardieu has been trending on French Twitter. Surveys have showed France's dilemma: half the French people understand him but there are as many who think that paying one's taxes is a national duty. In other words, a majority of French people disapprove of his action but can't help loving the man.


Putin's move in granting the actor Russian citizenship has exacerbated things. And first of all, it is a blow to Hollande who, it was revealed, had a phone conversation with Depardieu on New Year's Day. The Elysées Palace refused to communicate on the men's exchange. A friend of the actor declared that Depardieu complained about being so reviled by the press and that he was leaving, no matter what.


If, in their hearts, the French don't quite believe Depardieu might one day settle in Moscow and abandon them, they feel deeply saddened by the whole saga. However, with France's former sex symbol Brigitte Bardot declaring that she too might ask Putin for Russian citizenship to protest against the fate of zoo elephants in Lyon, it looks as if the French may prefer to laugh the whole thing off. Proof of this: the last trend on French Twitter is #IWantRussianCitizenship.


The opinions expressed in this commentary are solely those of Agnes Poirier.






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