Wall Street rises after Alcoa reports earnings

NEW YORK (Reuters) - Stocks rose on Wednesday, rebounding from two days of losses, as investors turned their focus to the first prominent results of the earnings season.


Stocks had retreated at the start of the week from the S&P 500's highest point in five years, hit last Friday, on worries about possible earnings weakness.


Shares of Alcoa Inc were down 0.5 percent to $9.08 after early gains, following the company's earnings release after the bell on Tuesday. The largest U.S. aluminum producer said it expects global demand for aluminum to grow in 2013.


Herbalife Ltd stock rose 4.2 percent to $39.95 in its most active day of trading in the company's history after hedge fund manager Dan Loeb took a large stake in the nutritional supplements seller. Prominent short-seller Bill Ackman had previously accused the company of being a "pyramid scheme," which Herbalife has denied.


Traders have been cautious as the current quarter shaped up like the previous one, with companies recently lowering expectations, said James Dailey, portfolio manager of Team Asset Strategy Fund in Harrisburg, Pennsylvania. Lower expectations leave room for companies to surprise investors even if their results are not particularly strong.


"The big question and focus is on revenue, and Alcoa had better-than-expected revenue," which calmed the market a little, Dailey said.


Overall, corporate profits were expected to beat the previous quarter's meager 0.1 percent rise. Both earnings and revenues in the fourth quarter are expected to have grown by 1.9 percent, according to Thomson Reuters data.


The Dow Jones industrial average <.dji> gained 61.66 points, or 0.46 percent, to 13,390.51. The Standard & Poor's 500 Index <.spx> rose 3.87 points, or 0.27 percent, to 1,461.02. The Nasdaq Composite Index <.ixic> gained 14.00 points, or 0.45 percent, to 3,105.81.


Facebook Inc shares rose above $30 for the first time since July 2012, trading up 5.3 percent at $30.59. Facebook, which has been tight-lipped about its plans after its botched IPO in May, invited the media to its headquarters next week.


Clearwire Corp shares jumped 7.2 percent to $3.13 after Dish Network bid $2.28 billion for the company, beating out a previous Sprint offer and setting the stage for a takeover battle for the wireless service provider that owns crucial mobile spectrum.


Apollo Group Inc slid after heavier early losses, a day after it reported lower student sign-ups for the third straight quarter and cut its operating profit outlook for 2013. Apollo's shares were last off 7.8 percent at $19.32.


Volume was below the 2012 average of 6.42 billion shares traded per day, as 6.10 billion were traded on the New York Stock Exchange, NYSE MKT and Nasdaq.


Advancing stocks outnumbered declining ones on the NYSE by 2,014 to 963, while on the Nasdaq advancers beat decliners 1,603 to 859.


(Reporting by Gabriel Debenedetti; additional reporting by Angela Moon; Editing by Nick Zieminski)



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Bonds, Clemens rejected; no one elected to BB Hall


NEW YORK (AP) — Steroid-tainted stars Barry Bonds, Roger Clemens and Sammy Sosa were denied entry to baseball's Hall of Fame, with voters failing to elect any candidates for only the second time in four decades.


In a vote that keeps the game's career home run leader and one of its greatest pitchers out of Cooperstown — at least for now — Bonds received just 36.2 percent of the vote and Clemens 37.6 in totals announced Wednesday by the Hall and the Baseball Writers' Association of America, both well short of the 75 percent necessary. Sosa, eighth on the career home run list, got 12.5 percent.


"Curt Schilling made a good point, everyone was guilty. Either you used PEDs, or you did nothing to stop their use," Hall of Famer Mike Schmidt said in an email to The Associated Press. "This generation got rich. Seems there was a price to pay."


Bonds, Clemens and Sosa were eligible for the first time and have up to 14 more years on the writers' ballot to gain baseball's highest honor.


"After what has been written and said over the last few years I'm not overly surprised," Clemens said in a statement he posted on Twitter.


Craig Biggio, 20th on the career list with 3,060 hits, topped the 37 candidates with 68.2 percent of the 569 ballots, 39 shy of election. Among other first-year eligibles, Mike Piazza received 57.8 percent and Schilling 38.8.


Jack Morris led holdovers with 67.7 percent. He will make his final ballot appearance next year, when fellow pitchers Greg Maddux and Tom Glavine along with slugger Frank Thomas are eligible for the first time.


Two-time NL MVP Dale Murphy received 18.6 percent in his 15th and final appearance.


"With 53 percent you can get to the White House, but you can't get to Cooperstown," BBWAA secretary-treasurer Jack O'Connell said. "It's the 75 percent that makes it difficult."


It was the eighth time the BBWAA failed to elect any players. There were four fewer votes than last year and five members submitted blank ballots.


"It's a tough period for evaluation, that's what this chalks up to," Hall President Jeff Idelson said. "Honestly, I think that any group you put this to would have the same issues. ... There's always going to be discussion and concern about players who didn't get in, but at the end of the day it's a process and again, a snapshot in time isn't one year, it's 15 with this exercise."


Bonds, baseball's only seven-time Most Valuable Player, hit 762 home runs, including a record 73 in 2001.


"It is unimaginable that the best player to ever play the game would not be a unanimous first-ballot selection," said Jeff Borris of the Beverly Hills Sports Council, Bonds' longtime agent.


Clemens, the only seven-time Cy Young Award winner, is third in career strikeouts and ninth in wins.


"To those who did take the time to look at the facts," Clemens said, "we very much appreciate it."


Since 1961, the only years the writers didn't elect a candidate were when Yogi Berra topped the 1971 vote by appearing on 67 percent of the ballots cast and when Phil Niekro headed the 1996 ballot at 68 percent. Both were chosen the following years when they achieved the 75 percent necessary for election.


The other BBWAA elections without a winner were in 1945, 1946, 1950, 1958 and 1960.


"Next year, I think you'll have a rather large class and this year, for whatever reasons, you had a couple of guys come really close," Commissioner Bud Selig said at the owners' meetings in Paradise Valley, Ariz. "This is not to be voted to make sure that somebody gets in every year. It's to be voted on to make sure that they're deserving. I respect the writers as well as the Hall itself. This idea that this somehow diminishes the Hall of baseball is just ridiculous in my opinion."


Players' union head Michael Weiner called the vote "unfortunate, if not sad."


"To ignore the historic accomplishments of Barry Bonds and Roger Clemens, for example, is hard to justify. Moreover, to penalize players exonerated in legal proceedings — and others never even implicated — is simply unfair. The Hall of Fame is supposed to be for the best players to have ever played the game. Several such players were denied access to the Hall today. Hopefully this will be rectified by future voting."


Three inductees were chosen last month by the 16-member panel considering individuals from the era before integration in 1947: Yankees owner Jacob Ruppert, umpire Hank O'Day and barehanded catcher Deacon White. They will be enshrined during a ceremony in Cooperstown on July 28, when the Hall also will honor Lou Gehrig and Rogers Hornsby among a dozen players who never received formal inductions because of restrictions during World War II.


Bonds has denied knowingly using performance-enhancing drugs and was convicted of one count of obstruction of justice for giving an evasive answer in 2003 to a grand jury investigating PEDs. Clemens was acquitted of perjury charges stemming from congressional testimony during which he denied using PEDs.


Sosa, who finished with 609 home runs, was among those who tested positive in MLB's 2003 anonymous survey, The New York Times reported in 2009. He told a congressional committee in 2005 that he never took illegal performance-enhancing drugs.


The BBWAA election rules say "voting shall be based upon the player's record, playing ability, integrity, sportsmanship, character, and contributions to the team(s) on which the player played."


An Associated Press survey of 112 eligible voters conducted in late November after the ballot was announced indicated Bonds, Clemens and Sosa would fall well short of 50 percent. The big three drew even less support than that as the debate raged over who was Hall worthy.


Voters are writers who have been members of the BBWAA for 10 consecutive years at any point.


BBWAA president Susan Slusser of the San Francisco Chronicle said she didn't vote for Bonds, Clemens or Sosa.


"The evidence for steroid use is too strong," she said.


As for Biggio, "I'm surprised he didn't get in."


MLB.com's Hal Bodley, the former baseball columnist for USA Today, said Biggio and others paid the price for other players using PEDs.


"They got caught in the undertow of the steroids thing," he said.


Bodley said this BBWAA vote was a "loud and clear" message on the steroids issue. He said he couldn't envision himself voting for stars linked to drugs.


"We've a forgiving society, I know that," he said. "But I have too great a passion for the sport."


Mark McGwire, 10th on the career home run list, received 16.9 percent on his seventh try, down from 19.5 last year. He received 23.7 percent in 2010 — a vote before he admitted using steroids and human growth hormone.


Rafael Palmeiro, among just four players with 500 homers and 3,000 hits along with Hank Aaron, Willie Mays and Eddie Murray, received 8.8 percent in his third try, down from 12.6 percent last year. Palmeiro received a 10-day suspension in 2005 for a positive test for performance-enhancing drugs, claiming it was due to a vitamin vial given to him by teammate Miguel Tejada.


While there are exhibits about the Steroids Era at the Hall, the plaque room will remain without Bonds and Clemens, who join career hits leader Pete Rose on the outside looking in. There were four write-in votes for Rose, who never appeared on the ballot because of his lifetime ban that followed an investigation of his gambling while manager of the Cincinnati Reds.


Morris increased slightly from his 66.7 percent last year, when Barry Larkin was elected. Morris could become the player with the highest-percentage of the vote who is not in the Hall, a mark currently held by Gil Hodges at 63 percent in 1983.


Several players who fell just short in the BBWAA balloting later were elected by either the Veterans Committee or Old-Timers' Committee: Nellie Fox (74.7 percent on the 1985 BBWAA ballot), Jim Bunning (74.2 percent in 1988), Orlando Cepeda (73.6 percent in 1994) and Frank Chance (72.5 percent in 1945).


The ace of three World Series winners, Morris had 254 victories and was the winningest pitcher of the 1980s. His 3.90 ERA, however, is higher than that of any Hall of Famer.


___


AP Sports Writers Mike Fitzpatrick, John Marshall and Ben Walker contributed to this report.


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Underwater Robots Hear 9 Endangered Whales






Two underwater robots outfitted with equipment to detect whale song heard the calls of nine critically endangered North Atlantic right whales in the Gulf of Maine last month, just east of New England.


The whales are thought to use the area to mate between November and January, according to a release from the Woods Hole Oceanographic Institution (WHOI) in Massachusetts, whose researchers led the project.






The finding was reported to the National Oceanographic and Atmospheric Administration‘s Fisheries Services, which is charged with protecting these animals under the Marine Mammal Protection Act. The agency put in place a “dynamic management area,” meaning mariners in the area were asked to slow their vessels to avoid striking the animals.


The robots also detected fin, sei and humpback whales in the area, the first time autonomous vehicles have recorded songs of multiple whale species. The animals were recorded about 60 miles (97 kilometers) south of Bar Harbor, Maine, according to the release. Besides listening for whale song, the robots also tested a number of variables to see why the area might be an appealing breeding ground, measuring water temperature and salinity, as well as samples of water to look for tiny animals called zookplankton upon which the whales feed.


Detecting whale song


The 6-foot-long (1.8 meters) underwater robots look like yellow torpedoes, and use a quiet motor to submerge themselves before surfacing every few hours to transmit data back to computers and researchers on land.


The information the robots provide is essential for understanding the whale’s behavior in this area, which is little studied since the animals usually pass through in the late fall and winter when temperatures are freezing and weather is unforgiving, the release noted.


Detection of the whale song allowed researchers aboard the research vessel, Endeavor, to locate the whales and take photographs of them. This allowed scientists to identify four previously known right whales. The robots represent a large improvement of the previous methods used to find whales: the human eye.


“We’ve been doing visual based surveys for a long time — either from a plane or a boat,” said Sofie Van Parijs, a collaborating researcher, in the statement. “They have a lot of value, but they are limited, especially at certain times of the year. These gliders provide a great complement to this system. Knowing where right whales are helps you manage interactions between an endangered species and the human activities that impact those species.”


North Atlantic right whales can weigh 140,000 pounds (63,500 kilograms) and grow up to 55 feet (16.7 m), according to NOAA. They are critically endangered, and only 300 to 400 of the animals remain, NOAA reports.


Reach Douglas Main at [email protected]. Follow him on Twitter @Douglas_Main. Follow OurAmazingPlanet on Twitter @OAPlanet. We’re also on Facebook and Google+.


Copyright 2013 OurAmazingPlanet, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Karzai's U.S. visit a time for tough talk




The last time Presidents Obama and Karzai met was in May in Kabul, when they signed a pact regarding U.S. troop withdrawal.




STORY HIGHLIGHTS


  • Afghan President Karzai meeting with President Obama in Washington this week

  • Felbab-Brown: Afghan politics are corrupt; army not ready for 2014 troop pullout

  • She says Taliban, insurgents, splintered army, corrupt officials are all jockeying for power

  • U.S. needs to commit to helping Afghan security, she says, and insist corruption be wiped out




Editor's note: Vanda Felbab-Brown is a senior fellow in foreign policy at the Brookings Institution. Her latest book is "Aspiration and Ambivalence: Strategies and Realities of Counterinsurgency and State-Building in Afghanistan."


(CNN) -- Afghan President Hamid Karzai is meeting this week with President Obama in Washington amid increasing ambivalence in the United States about what to do about the war in Afghanistan.


Americans are tired of the war. Too much blood and treasure has been spent. The White House is grappling with troop numbers for 2013 and with the nature and scope of any U.S. mission after 2014. With the persisting corruption and poor governance of the Afghan government and Karzai's fear that the United States is preparing to abandon him, the relationship between Kabul and Washington has steadily deteriorated.


As the United States radically reduces its mission in Afghanistan, it will leave behind a stalled and perilous security situation and a likely severe economic downturn. Many Afghans expect a collapse into civil war, and few see their political system as legitimate.


Karzai and Obama face thorny issues such as the stalled negotiations with the Taliban. Recently, Kabul has persuaded Pakistan to release some Taliban prisoners to jump-start the negotiations, relegating the United States to the back seat. Much to the displeasure of the International Security Assistance Force, the Afghan government also plans to release several hundred Taliban-linked prisoners, although any real momentum in the negotiations is yet to take place.


U.S. may remove all triips from Afghanistan after 2014



Vanda Felbab-Brown

Vanda Felbab-Brown



Washington needs to be careful that negotiations are structured in a way that enhances Afghanistan's stability and is not merely a fig leaf for U.S. and NATO troop departure. Countering terrorism will be an important U.S. interest after 2014. The Taliban may have soured on al Qaeda, but fully breaking with the terror group is not in the Taliban's best interest. If negotiations give the insurgents de facto control of parts of the country, the Taliban will at best play it both ways: with the jihadists and with the United States.


Negotiations of a status-of-forces agreement after 2014 will also be on the table between Karzai and Obama. Immunity of U.S. soldiers from Afghan prosecution and control over detainees previously have been major sticking points, and any Afghan release of Taliban-linked prisoners will complicate that discussion.










Karzai has seemed determined to secure commitments from Washington to deliver military enablers until Afghan support forces have built up. The Afghan National Security Forces have improved but cannot function without international enablers -- in areas such as air support, medevac, intelligence and logistical assets and maintenance -- for several years to come. But Washington has signaled that it is contemplating very small troop levels after 2014, as low as 3,000. CNN reports that withdrawing all troops might even be considered.


Everyone is hedging their bets in light of the transition uncertainties and the real possibility of a major security meltdown after 2014. Afghan army commanders are leaking intelligence and weapons to insurgents; Afghan families are sending one son to join the army, one to the Taliban and one to the local warlord's militia.


With Afghan president's visit, nations' post-2014 future takes shape


Patronage networks pervade the Afghan forces, and a crucial question is whether they can avoid splintering along ethnic and patronage lines after 2014. If security forces do fall apart, the chances of Taliban control of large portions of the country and a civil war are much greater. Obama can use the summit to announce concrete measures -- such as providing enablers -- to demonstrate U.S. commitment to heading off a security meltdown. The United States and international security forces also need to strongly focus on countering the rifts within the Afghan army.


Assisting the Afghan army after 2014 is important. But even with better security, it is doubtful that Afghanistan can be stable without improvements in its government.


Afghanistan's political system is preoccupied with the 2014 elections. Corruption, serious crime, land theft and other usurpation of resources, nepotism, a lack of rule of law and exclusionary patronage networks afflict governance. Afghans crave accountability and justice and resent the current mafia-like rule. Whether the 2014 elections will usher in better leaders or trigger violent conflict is another huge question mark.


Emphasizing good governance, not sacrificing it to short-term military expediencies by embracing thuggish government officials, is as important as leaving Afghanistan in a measured and unrushed way -- one that doesn't jeopardize the fledgling institutional and security capacity that the country has managed to build up.


U.S. likely to keep thousands of troops in Afghanistan after NATO forces leave


Karzai has been deaf and blind to the reality that reducing corruption, improving governance and allowing for a more pluralistic political system are essential for Afghanistan's stability. His visit provides an opportunity to deliver the message again -- and strongly.


Follow us on Twitter @CNNOpinion


Join us on Facebook/CNNOpinion


The opinions in this commentary are solely those of Vanda Felbab-Brown.






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Hall of Fame pitches a shutout: No players elected

Steroid-tainted stars Barry Bonds, Roger Clemens and Sammy Sosa have been denied entry to baseball's Hall of Fame with voters failing to elect any candidates for only the second time in four decades. (Jan. 9)









Sammy Sosa, Barry Bonds and Roger Clemens finally faced a jury Wednesday that would decide whether they are worthy of the Hall of Fame, and the verdict was a resounding no: For the first time since 1996, no players were selected for induction.


Sosa, the former Chicago Cubs slugger, received only 12.5 percent of the vote, which keeps him on the ballot for at least one more year. Players with fewer than five percent fall off the ballot. Clemens was named on 37.6 percent of ballots and Bonds on 36.2 percent.


A Sosa representative said her client's only comment was that "it was an honor to be nominated" and he would be doing no interviews Wednesday.








The inclusion of the Steroids Era players on this year’s ballot overshadowed those who were thought to have the best chance of being voted into baseball’s hallowed shrine in Cooperstown: former Chicago White Sox outfielder Tim Raines, the Houston Astros’ long-time duo of Craig Biggio and Jeff Bagwell and All-Star pitcher Jack Morris.


Biggio was the top vote-getter with 68.2 percent, followed by Morris at 67.7, Bagwell at 59.6, Mike Piazza at 57.8 and Raines at 52.2. Induction requires 75 percent of the vote.


Also in contention was former Cubs closer Lee Smith, who was on the ballot for the 11th time but received only 47.8 percent of the vote.


Hall of Fame president Jeff Idelson acknowledged the awkwardness of the result.

"Obviously, no one in Cooperstown was rooting for a shutout, but we have a great respect for the process," Idelson said.

This Hall of Fame eligible class had received more attention than most because of the inclusion of Bonds, who won seven MVP awards; Clemens, who won seven Cy Young awards; and Sosa, who won a National League MVP award after his famous 1998 home run duel with the Cardinals’ Mark McGwire.


In a statement, Players Association Executive Director Michael Weiner called the results of the balloting "unfortunate, if not sad."

"Those empowered to help the Baseball Hall of Fame and Museum document the history of the game failed to recognize the contributions of several Hall of Fame worthy players," Weiner's statement read. "To ignore the historic accomplishments of Barry Bonds and Roger Clemens, for example, is hard to justify. Moreover, to penalize players exonerated in legal proceedings -- and others never even implicated -- is simply unfair.

"The Hall of Fame is supposed to be for the best players to have ever played the game. Several such players  were denied access to the Hall today. Hopefully this will be rectified by future voting.”


McGwire, the only one of those who publicly has acknowledged using performance-enhancing drugs, has failed seven times in his Hall of Fame election bid. Former Cub Rafael Palmeiro, who tested positive for a drug, has failed three times and received only 8.8 percent of the votes Wednesday.

The so-called Steroids Era has caused division within the electorate, comprised of 10-year members of the Baseball Writers Association. They historically have been very stingy with their votes, especially considering it takes 75 percent to be included in the summer induction ceremonies.


Here were the vote totals:

Craig Biggio 388 (68.2%), Jack Morris 385 (67.7%), Jeff Bagwell 339 (59.6%), Mike Piazza 329 (57.8%), Tim Raines 297 (52.2%), Lee Smith 272 (47.8%), Curt Schilling 221 (38.8%), Roger Clemens 214 (37.6%), Barry Bonds 206 (36.2%), Edgar Martinez 204 (35.9%), Alan Trammell 191 (33.6%), Larry Walker 123 (21.6%), Fred McGriff 118 (20.7%), Dale Murphy 106 (18.6%), Mark McGwire 96 (16.9%), Don Mattingly 75 (13.2%), Sammy Sosa 71 (12.5%), Rafael Palmeiro 50 (8.8%), Bernie Williams 19 (3.3%), Kenny Lofton 18 (3.2%), Sandy Alomar Jr. 16 (2.8%), Julio Franco 6 (1.1%), David Wells 5 (0.9%), Steve Finley 4 (0.7%), Shawn Green 2 (0.4%), Aaron Sele 1 (0.2%), Jeff Cirillo 0, Royce Clayton 0, Jeff Conine 0, Roberto Hernandez 0, Ryan Klesko 0, Jose Mesa 0, Reggie Sanders 0, Mike Stanton 0, Todd Walker 0, Rondell White 0, Woody Williams 0.


 dvandyck@tribune.com

Twitter @davandyck





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Venezuela court endorses Chavez inauguration delay


CARACAS (Reuters) - Venezuela's top court endorsed the postponement of Hugo Chavez's inauguration this week and ruled on Wednesday that the cancer-stricken president and his deputy would continue in their roles, despite a cacophony of opposition complaints.


Critics had argued the 58-year-old's absence from his own swearing-in ceremony on January 10 meant a caretaker president must be appointed. Chavez has not been seen in public nor heard from in almost a month following surgery in Cuba.


"Right now we cannot say when, how or where the president will be sworn in," Supreme Court Chief Judge Luisa Morales told a news conference.


"As president re-elect there is no interruption of performance of duties ... The inauguration can be carried out at a later date before the Supreme Court."


The decision opens the door in theory for Chavez to remain in office for weeks or months more from a Cuban hospital bed - though there is no evidence he is even conscious.


It leaves the South American country in the hands of Vice President Nicolas Maduro, as de facto leader of the government.


The opposition say that is a brazen violation of the constitution, and that Maduro should leave office on Thursday when the current presidential term had been due to expire.


They say National Assembly boss Diosdado Cabello, another powerful Chavez ally, should take over the running of the country while new elections would be organized within 30 days.


Maduro would be the ruling Socialist Party's candidate.


Government leaders insist Chavez, 58, is fulfilling his duties as head of state, even though official medical bulletins say he suffered complications after the surgery, including a severe lung infection, and has had trouble breathing.


His resignation or death would transform politics in the OPEC nation, where he is revered by poor supporters thankful for his social largesse, but denounced by opponents as a dictator.


RALLY PLANNED FOR THURSDAY


Moody's Investors Service warned on Wednesday that Venezuela's sovereign credit rating, already at junk status, faces short-term risks over any political transition.


Prices of Venezuela's widely traded bonds have soared lately on Chavez's health woes, but dipped this week as investors' expectations of a quick government change apparently dimmed.


The president has undergone four operations, as well as weeks of chemotherapy and radiation treatment, since being diagnosed with an undisclosed type of cancer in his pelvic area in June 2011.


He looked to have staged a remarkable recovery from the illness last year, winning a new six-year term at a hard-fought election in October. But within weeks of his victory he had to return to Havana for more treatment.


The government has called for a huge rally outside the Miraflores presidential palace in Caracas on Thursday, and allied leaders including Uruguay's Jose Mujica and Bolivia's Evo Morales have said they will visit - despite Chavez's absence.


Argentine President Cristina Fernandez, a close friend, has announced plans to visit Chavez in Cuba on Friday.


The unprecedented silence by Chavez, who is well known for his hours-long rambling speeches, has convinced many Venezuelans that his 14 years in power may be coming to an end.


Unlike after his previous operations in Cuba, no photographs have been published of him recuperating, and social media in Venezuela is buzzing with rumors he is on life support.


Cabello, the pugnacious head of the National Assembly, has repeatedly ruled out taking over as caretaker president to order a new presidential election, saying Chavez remains in charge.


"Tomorrow we will all go to the Miraflores palace," he told a televised Socialist Party meeting on Wednesday. "The people will be invested as president. We are all Chavez!"


(Additional reporting by Marianna Parraga and Diego Ore; Editing by Andrew Cawthorne)



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Wall Street slips as earnings season gets under way

NEW YORK (Reuters) - Stocks fell on Tuesday, retreating from last week's rally on the "fiscal cliff" deal in Washington, as companies started to report results for the fourth quarter.


After a 4.3 percent jump in the two sessions around the close of the fiscal cliff negotiations, the S&P has declined a bit, with investors finding few catalysts to extend the rally that took the benchmark to five-year highs.


"We had a brief respite, courtesy of what happened on the fiscal cliff deal and the flip of the calendar with new money coming into the market," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.


Shares of AT&T Inc dropped 1.7 percent to $34.35, making it one of the biggest drags on the S&P 500, after the company said it sold more than 10 million smartphones in the quarter.


This figure beat the same quarter in 2011, but also means increased costs for the wireless service provider. Providers like AT&T pay hefty subsidies to handset makers so that they can offer discounts to customers who commit to two-year contracts.


Fourth-quarter profits are expected to beat the previous quarter's lackluster results, but analyst estimates are down sharply from October. Quarterly earnings are expected to grow by 2.7 percent, according to Thomson Reuters data. Dow component Alcoa, the largest U.S. aluminum producer, reported results after the closing bell.


The Dow Jones industrial average <.dji> dropped 55.44 points, or 0.41 percent, to 13,328.85. The Standard & Poor's 500 Index <.spx> fell 4.74 points, or 0.32 percent, to 1,457.15. The Nasdaq Composite Index <.ixic> lost 7.01 points, or 0.23 percent, to 3,091.81.


"The stark reality of uncertainty with regard to earnings, plus the negotiations on the debt ceiling, are there and that doesn't give investors a lot of reason to take bets on the long side," Hellwig said.


With AT&T's fall, the S&P telecom services index <.gspl> was the worst performer of the 10 major S&P sectors, down 2.7 percent.


Sears Holdings shares dropped 6.4 percent to $40.16 a day after the company said Chairman Edward Lampert would take over as CEO from Louis D'Ambrosio, who is stepping down due to a family member's health issue. The U.S. retailer also reported a 1.8 percent decline in quarter-to-date sales at stores open at least a year.


Markets went lower as some of the first reported earnings were weak.


"It doesn't seem to be bouncing back, it might stay here or sell off a little further," said Stephen Carl, head of U.S. equity trading at The Williams Capital Group in New York.


Shares of restaurant-chain operator Yum Brands Inc fell 4.2 percent to $65.04 a day after the KFC parent warned sales in China, its largest market, shrank more than expected in the fourth quarter.


GameStop was one of the worst performers on the S&P 500 as shares slumped 6.3 percent to $23.19 after the video game retailer reported low customer traffic for the holiday season and cut its guidance.


Shares of Monsanto Co gained 2.5 percent to $98.42 after reaching a more than four-year high at $99.99. The world's largest seed company raised its earnings outlook for fiscal year 2013 and posted strong first-quarter results.


Volume was below the 2012 average of 6.42 billion shares traded per day, as 6.19 billion were traded on the New York Stock Exchange, NYSE MKT and Nasdaq.


Declining stocks outnumbered advancing ones on the NYSE by 1,495 to 1,458, while on the Nasdaq decliners beat advancers 1,305 to 1,158.


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



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Saban quickly turns to challenges of 2013 season


FORT LAUDERDALE, Fla. (AP) — It's becoming a familiar January scene for Nick Saban.


The Alabama coach plastered a smile on his face for a series of posed photos next to the various trophies awarded to college football's national champions and then proceeded to talk about the challenges facing his team.


Maybe Saban let the Gatorade dry from the celebratory drenching before thinking about the 2013 season. Maybe.


"The team next year is 0-0," Saban, who is on a 61-7 run over the past five seasons, said Tuesday morning. "Even though I really appreciate what this team accomplished and am very, very proud of what they accomplished, we need to prepare for the challenges of the new season very quickly with the team we have coming back. "


It didn't take Saban long to refocus after Monday night's 42-14 demolition of Notre Dame that secured a second straight BCS title, the Crimson Tide's third in four seasons and the seventh straight for Southeastern Conference teams.


Shortly after the game, he was already talking about getting back to the office by Wednesday morning.


Alabama players, meanwhile, finally were able to voice the "D-word." Center Barrett Jones said he had a Sports Illustrated cover from a couple of years ago after his last college game.


"It says, 'Dynasty. Can anybody stop Alabama?' I'll never forget looking at that thing and wondering if we really could be a dynasty," said Jones, who mainly put it on the wall because he's featured. "I think three out of four, I'm no dynasty expert, but that seems like a dynasty to me. I guess I can say that now that I'm gone. Don't tell coach I said that."


The 2013 team will almost certainly be regarded among the preseason favorites to get back to the summit, even though three Tide stars — tailback Eddie Lacy, cornerback Dee Milliner and right tackle D.J. Fluker — could decide to skip their senior seasons and turn pro.


Saban also emphatically tried to end speculation that he might return to the NFL, where he spent two years with the Miami Dolphins before returning to the SEC.


It was a question that really made him bristle during the 30-plus minute news conference.


"How many times do you think I've been asked to put it to rest?" Saban said. "And I've put it to rest, and you continue to ask it. So I'm going to say it today, that — you know, I think somewhere along the line you've got to choose. You learn a lot from the experiences of what you've done in the past. I came to the Miami Dolphins, what, eight years ago for the best owner, the best person that I've ever had the opportunity to work for. And in the two years that I was here, I had a very, very difficult time thinking that I could impact the organization in the way that I wanted to or the way that I was able to in college, and it was very difficult for me."


He said that experience taught him that the college ranks "is where I belong, and I'm really happy and at peace with all that."


As for the players, All-America linebacker C.J. Mosley has already said he'll return. So has quarterback AJ McCarron, who had his second straight star turn in a BCS title game.


"We certainly have to build the team around him," Saban said, adding that a late-game spat with Jones showed the quarterback's competitive fire. "I've talked a lot about it's difficult to play quarterback when you don't have good players around you. I think we should have, God willing and everybody staying healthy, a pretty good receiver corps. We'll have to do some rebuilding in the offensive line. Regardless of what Eddie decides to do, we'll probably still have some pretty decent runners. But I think AJ can be a really good player, maybe the best quarterback in the country next year."


The biggest question mark is replacing three, maybe four, starters on an offensive line that paved the way.


Amari Cooper, who broke several of Julio Jones' Alabama freshman receiving marks, and fellow freshman running back T.J. Yeldon give McCarron and the Tide a couple of potent weapons, even if Lacy doesn't return.


"I am going to try to win three or four," said Cooper, who had 105 yards and two touchdowns in the title game. "This season was good, but I expected it to be even more. There is so much more that I can do."


Saban emphasized the difficulty of repeating and said he showed the players a video of NBA Hall of Famer Michael Jordan saying that the first title isn't the hardest — it's the ones after that.


That's because, Saban said, "you have to have the will to fight against yourself."


Now, the 'Bama coach has four titles, including one during his stop at LSU. Saban doesn't wear the championship rings but uses them for a different purpose.


"I just put them on the coffee table for the recruits to look at," he said, cracking up the room.


Saban has already lined up another highly rated recruiting class and has the next wave of young talents waiting in the wings.


After all, he talked about the sign mentor Bill Belichick hung in the football building during their NFL days together: "Do your job."


Saban jokingly acknowledged that while he prepares for everything, the one thing he has never been able to anticipate is the Gatorade bath. He drew heat for a scowl after the first one, following the title game win over Texas when he got dinged in the head. Monday night's dousing went better.


"It's cold, it's sticky, but I appreciated not getting hit in the head with the bucket," Saban said. "That was an improvement."


No program has had this kind of championship run since Tom Osborne's Nebraska teams won it all in 1994, 1995 and 1997.


Saban remembers that second team well. The Cornuskers stomped Michigan State 50-10 in Saban's first game as head coach.


"I'm thinking, we're never going to win a game," Saban said. "We'll never win a game here at Michigan State. I must have taken a bad job, wrong job, no players, something. I remember Coach Osborne when we shook hands after the game, he put his arm around me and whispered in my ear, 'You're not really as bad as you think.'"


So take heart, college football.


Read More..

It’s Official: 2012 Smashes Record for Warmest Year in US






With weather records last year out the wazoo, it’s perhaps no surprise that 2012 has been officially named the warmest year on record in the contiguous United States, the National Oceanic and Atmospheric Administration (NOAA) announced today (Jan. 8).


In November, when temperature trends showed October to be the fifth warmest across the globe since record keeping began in the 1880s, climate scientists voiced their bets: They said it was 90 percent likely that 2012 would become the warmest year on record for the lower 48, which excludes Alaska and Hawaii.






The average temperature for 2012 for these states was 55.3 degrees Fahrenheit (12.9 degrees Celsius), or 3.2 degrees F (1.8 degrees C) above the 20th-century average, and 1.0 degree F (0.56 degree C) above 1998, the previous warmest year.


Every contiguous U.S. state had an above-average annual temperature for 2012, with 19 states boasting a record warm year and an additional 26 states experiencing one of their 10 warmest in 2012, NOAA’s National Climate Data Center (NCDC) reported.


As for what’s behind the warming trends, “It’s a combination of longer-term trends and local effects or regional effects like the drought,” NCDC climatologist Jake Crouch told LiveScience in November.


Crouch echoed those remarks in a call with reporters today. He said it’s hard to say how much of the 2012 temperature increase can be pinned on climate change and how much can be attributed to local variability. Regardless, the data fits in with an overall warming pattern.


“The contiguous U.S. temperature is increasing,” Crouch said. “Going into the future we would expect warmer years.”


And along with rising temperatures, the United States can also expect more extreme events, said Deke Arndt, chief of the climate monitoring branch at NCDC. He told reporters that the NCDC expects to see a continued trend in big heat events and big rain events in the future.


Last year also was second only to 1998 in terms of extreme climate, as measured by U.S. Climate Extremes Index, which takes into account factors like high temperatures, dry spells and rainy periods. The historic ranking for 2012 was driven mostly by warm daytime maximum temperatures, warm nighttime maximum temperatures as well as the footprint of the drought that swept much of the country, NCDC officials said.


The widespread drought conditions of 2012 maxed out in July, with about 61 percent of the country experiencing such conditions; this dry footprint was roughly equivalent to that of the 1950s when 60 percent of the country showed drought conditions. Even so, the current drought hasn’t reached the intensity or duration of the 1950s and 1930s national-scale droughts, the NCDC reports.


NOAA named Hurricane Sandy its top weather event of 2012, ahead of the drought and the record-setting heat. Climate scientists typically caution that it’s tricky to link single events like big storms, which develop over days, to global warming, which evolves over decades. But destruction caused by Sandy was likely worse than it would have been 100 years ago. The storm, he said, “was operating on an ocean several inches higher than it was in the early 20th century. That surely impacted storm surges along the coast.”


Follow LiveScience on Twitter @livescience. We’re also on Facebook & Google+.


Copyright 2013 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Iran faces oil revenue problem









By John Defterios, CNN


January 8, 2013 -- Updated 1535 GMT (2335 HKT)







With elections in June, it remains unclear how energy policy will evolve after President Mahmoud Ahmadinejad's era




STORY HIGHLIGHTS


  • The IEA has suggested Iraq surpassed Iran in output for the first time in over 20 years

  • The Iranian people are faced with spiralling inflation and job layoffs within the state sector

  • Iranian oil revenues in the country plummeted 40 percent, while gas export revenues fell by 45%




Editor's note: John Defterios is CNN's Emerging Markets Editor and anchor of Global Exchange, CNN's prime time business show focused on the emerging and BRIC markets. You can watch it on CNN International at 1600 GMT, Sunday to Thursday.


Abu Dhabi (CNN) -- All indications are that sanctions against Iran are really starting to bite and this time it is coming from the oil ministry in Tehran, which for months has denied that oil production was suffering due to international pressure.


In an interview with the Iranian Student News Agency (ISNA), Gholam Reza Kateb a member of the national planning and budget committee in Parliament referenced a report from Iran's oil minister Rostam Qasemi. In that report, the minister suggested that oil revenues in the country plummeted 40 percent, while gas and gas products' export revenues fell by 45% compared to the same period last year.


Read more: Official: Iran, nuclear watchdog group deal close


This is a hot button issue in Iran, where the currency due to sanctions has dropped 80 percent from its peak in 2011. The Iranian people are faced with spiralling inflation and job layoffs within the state sector.


I spoke with a source in Iran's representative office to OPEC who declined to comment and referred all matters to the Oil Ministry. A spokesman at the state oil company Iran Petroleum would only say "in this political climate it is difficult to confirm these statements."


Read more: Iran steps up uranium enrichment, U.N. report says


Hours later, a spokesman from the Ministry told another Iranian news agency, Mehr, that the numbers quoted about revenue and production drops are not true, although he offered no specific numbers.


Until this report to the Iranian Parliament, Minister Qasemi has maintained that Iran's production was hovering around four million barrels a day, where it was two years ago.


Read more: Opinion: Time to defuse Iranian nuclear issue




Back at the OPEC Seminar in June 2012, the minister told me that sanctions would not have any influence on plans to expand production and investment, shrugging off questions that suggested otherwise. This despite analysis to the contrary from the Paris based International Energy Agency and Vienna based OPEC of which Iran is a member.




The IEA back in July suggested that Iraq surpassed Iran in production for the first time in over two decades and production in Iran dipped to 2.9 million barrels a day. OPEC in its October 2012 survey said it slipped to 2.72 million at the time Minister Qasemi said output remained at 4 million barrels.




Minister Qasemi was recently quoted at a conference in Tehran that Iran needs to invest $400 billion over the next five years to maintain production targets and to play catch up after years of under investment.


Iran is a land full of potential. According to the annual BP Statistical Review, Iran sits on nearly 10 percent of the world's proven reserves at 137 billion barrels. The South Pars field which it shares with Qatar is one of the largest natural gas fields in the world -- but Iran, due to sanctions, cannot expand development.


This is a highly charged period. With elections in mid-June, it remains unclear how energy policy will evolve after the era of President Mahmoud Ahmadinejad passes. It has been eight years of his tough line against Washington, Brussels and other governments that put forth sanctions against Iran. It is not clear if a new President will usher in a new nuclear development policy to ease the pressure on Iran's energy sector and the country's people.












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