S&P 500 and Nasdaq inch higher, fiscal cliff a concern

NEW YORK (Reuters) – Stocks mostly ticked higher on Monday, but persistent concerns about the upcoming debate on the fiscal cliff limited gains even after last week’s steep sell-off.

Barclays cut its year-end target for the S&P 500 to 1,325, citing fiscal cliff issues.

The S&P 500 dropped 2.4 percent last week, the worst week for the benchmark index since June. It closed below its 200-day moving average for the first time in five months, and an extended run under that level could signal further losses ahead.

Trading volume is expected to be light, with the U.S. bond market and government offices closed on Monday for the Veterans Day holiday.

Last week’s weakness was partly propelled by concerns about whether there will be a timely solution to avoid the fiscal cliff, a combination of government spending cuts and tax increases set to go into effect early next year unless Congress acts to change the law before then. Though most consider it unlikely that no deal will be reached, analysts fear going over the cliff could push the economy back into recession

“Right now, all eyes are on Washington, and we’re just waiting,” said Matthew Keator, a partner in the Keator Group, a wealth management firm in Lenox, Massachusetts. “We’re hopeful something gets done, but we’ve been disappointed before. We need to see something done if we’re going to remain up for the year.”

The S&P 500 is still up 10 percent for 2012, though recent months have eroded those gains. The Nasdaq has fallen for five straight weeks.

The Dow Jones industrial average <.DJI> was down 3.69 points, or 0.03 percent, at 12,811.70. The Standard & Poor’s 500 Index <.SPX> was up 0.87 of a point, or 0.06 percent, at 1,380.72. The Nasdaq Composite Index <.IXIC> was up 4.53 points, or 0.16 percent, at 2,909.41.

Some major acquisition news gave investors some reasons for optimism on Monday. Precision Castparts Corp offered to buy Titanium Metals Corp for $ 2.9 billion, while Leucadia National Corp agreed to buy investment bank Jefferies Group for $ 3.6 billion.

Shares of Titanium surged 42.3 percent to $ 16.46 while Jefferies climbed 13.5 percent to $ 16.19. Precision rose 5.5 percent to $ 180.67. In contrast, Leucadia fell 4 percent to $ 20.93.

“After last week, there could be some bargain opportunities out there,” said Keator, who helps oversee $ 500 million in assets. “Especially since if there is a fiscal cliff deal, that could lead to a tremendous move on the upside.”

Overseas, a report over the weekend showed China’s export growth climbed to a five-month high, beating expectations and adding to recent data suggesting the country’s seven straight quarters of slowing economic growth have ended.

In addition, the Greek parliament on Sunday approved an austerity budget for next year, a necessary step to unblock a new tranche of credit from the European Union and International Monetary Fund before the government runs out of cash. Still, investors remain concerned about whether the EU and IMF will agree to send the next tranche.

Apple Inc rose 0.6 percent to $ 550.42 after the company announced a global patent settlement with HTC Corp <2498.TW>, as well as a 10-year licensing agreement. Apple‘s stock has been under pressure recently, dropping more than 20 percent from its 2012 high to enter bear market territory.

Homebuilder D.R. Horton Inc reported fourth-quarter earnings that beat expectations, helped by a jump in orders. D.R. Horton‘s shares gained 3.1 percent to $ 21.23.

According to Thomson Reuters data through Friday, of the 449 companies in the S&P 500 that have reported earnings, 63.3 percent have topped expectations. But only 38.2 percent of companies have topped revenue expectations – well below the 62 percent average since 2002.

(Editing by Jan Paschal)

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Dutch teenagers sentenced in “Facebook murder”

AMSTERDAM (Reuters) – Two Dutch teenagers were sentenced to two years in juvenile detention and three years of compulsory therapy on Monday for ordering the death of a girl after an argument on Facebook.

The case, known in the Netherlands as the “Facebook murder”, has caused widespread debate about the role of social media in violent crime.

The victim, identified only as 15-year old Winsie, was fatally stabbed in January at the request of the boy and girl, who were aged 17 and 16 respectively at the time.

Winsie had argued for weeks with the girl, and they had swapped insults on the social networking site.

“The defendants are guilty of a particularly serious criminal offence. The fact that a friendship between two young girls can turn into deep hate and ultimately into murder being incited is shocking and hard to comprehend,” a court in the city of Arnhem said in a statement.

The killer, who Dutch media named only as Jinhua and who was 14 when he committed the crime, was sentenced in September to one year in juvenile detention.

(Reporting Gilbert Kreijger; Editing by Anthony Deutsch and Pravin Char)

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Elmo puppeteer accused of underage relationship

NEW YORK (AP) — The puppeteer who performs as Elmo on “Sesame Street” is taking a leave of absence from the popular kids’ show in the wake of allegations that he had a relationship with a 16-year-old boy.

Sesame Workshop said puppeteer Kevin Clash denies the charges, which were first made in June by the alleged partner, who by then was 23.

“We took the allegation very seriously and took immediate action,” Sesame Workshop said in a statement issued Monday. “We met with the accuser twice and had repeated communications with him. We met with Kevin, who denied the accusation.”

The organization described the relationship as personal and “unrelated to the workplace.” Its investigation found the allegation of underage conduct to be unsubstantiated. But it said Clash exercised “poor judgment” and was disciplined for violating company policy regarding Internet usage. It offered no details.

“I had a relationship with (the accuser),” Clash told TMZ. “It was between two consenting adults and I am deeply saddened that he is trying to make it into something it was not.”

At his request, Clash has been granted a leave of absence in order to “protect his reputation,” Sesame Workshop said.

No further explanation was provided, nor was the duration of his leave specified.

“Elmo is bigger than any one person and will continue to be an integral part of ‘Sesame Street’ to engage, educate and inspire children around the world, as it has for 40 years,” Sesame Workshop said in its statement.

“Sesame Street” is currently in production, but other puppeteers are prepared to fill in for Clash during his absence, according to a person close to the show who spoke on condition of anonymity because that person was not authorized to publicly discuss details about the show’s production.

“Elmo will still be a part of the shows being produced,” that person said.

The 52-year-old Clash, the divorced father of a grown daughter, has been a puppeteer for “Sesame Street” since 1984. It was then that he was handed the fuzzy red puppet named Elmo and asked to come up with a voice for him. Clash transformed the character, which had been a marginal member of the Muppets troupe for a number of years, into a major star rivaling Big Bird as the face of “Sesame Street.”

In 2006, Clash published an autobiography, “My Life as a Furry Red Monster,” and was the subject of the 2011 documentary “Being Elmo: A Puppeteer’s Journey.”

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Assisted Dying Advocates Deflated

More than 1.5 million Massachusetts voters said “no” to a ballot measure last week that would have allowed doctor-assisted suicide for the terminally ill, clinching a 51 percent majority. Jim Carberry might have been one of them, had he not watched his cancer-stricken wife starve herself to death.

Margie Carberry had four surgeries and 44 doses of radiation for a rare spinal tumor before doctors said “there was nothing more they could do.”

“By that point, she was just existing,” said Jim Carberry of Natick, Mass., recalling the 16-year cancer battle that left his wife unable to walk, talk, eat and even breathe on her own. “She started seeing the palliative care team at Mass General, as well as a social worker and her minister. And she told them all on numerous occasions that after our youngest daughter’s graduation, she wanted to die.”

Margie made it to the graduation ceremony, a milestone she imagined when at the time of her diagnosis when her daughters were 2 and 5 years old. A week later, she decided to die by removing her feeding tube.

“She exercised the only option she had,” said Carberry of the agonizing process that spanned five weeks in the summer of 2011. “It was horrendous watching her waste away, having my children watch her waste away. I decided that if there was anything I could do to help another family avoid this, I would do it.”

Carberry became a voice for Death With Dignity, a national campaign to let doctors prescribe life-ending medication to terminally ill patients. Assisted dying laws have already been passed in Oregon and Washington. And on Nov. 6, the issue was on the Massachusetts ballot as “Question 2.” The measure was met with fierce opposition by religious, medical and disability rights groups.

“I honestly thought we would win,” said Carberry, who was devastated by the narrow defeat. “The fact that we lost by such a close margin, and the fact that the other side was funded by some outside groups who really didn’t have a dog in this fight, I won’t lie, I’m really angry.”

One of the groups, the Committee Against Assisted Suicide, argued Question 2 was “poorly written, confusing and flawed,” opening the door for depressed patients to take their lives before getting mental health counseling or seeking hospice care.

”We believe the voters came to see this as a flawed approach to end of life care, lacking in the most basic safeguards,” committee chairwoman Rosanne Bacon Meade said in a statement to the Associated Press. ”We hope this marks the beginning of a real conversation about ways to improve end-of-life care in Massachusetts, which, as the nation’s health care capital, is well positioned to take the lead on this issue.”

Assisted dying advocates argue data from Oregon, where the Death With Dignity Act was passed in 1994, refutes concerns about safeguards and plan to push for the ballot measure again in 2014.

“The foundation for support has been built, and we’ll keep working to make sure voters in Massachusetts and other states get the facts they need for an open and honest debate about Death with Dignity,” Peg Sandeen, executive director of the Death With Dignity National Center, said in a statement.

Carberry admits his position on Question 2 was undoubtedly influenced by his personal experience, which he did his best to share in advance of the vote.

“If someone could watch what my family went through all the way to the end and say, ‘That’s how I want my loved one to pass away,’ then there’s nothing I can do,” he said. “But anyone who has an iota of compassion in the heart, I can’t see them saying that.”

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Swiss seek progress on U.S. tax deal: economy minister

ZURICH (Reuters) – Switzerland hopes to restart talks with the U.S. over a long-simmering tax dispute following the re-election of president Obama, its economy minister was quoted as saying on Sunday.

Switzerland is trying to reach a deal to end investigations by U.S. tax authorities into 11 banks, including Credit Suisse and Julius Baer , suspected of helping clients dodge U.S. taxes with the help of offshore bank accounts.

It needs the tax deal so that it can normalize its banking relations with the United States and wants the investigations dropped in return for the payment of hefty fines by the Swiss banks and the transfer of names of thousands of U.S. clients.

“We are seeking clarification quickly,” Johann Schneider-Ammann told the Zentralschweiz am Sonntag newspaper. “The situation has been blocked recently. That must now change.”

The talks had stalled in the run-up to the U.S. election, and finance minister Eveline Widmer-Schlumpf has suggested the ball is firmly in the U.S. court.

The two countries are at odds over U.S. demands for Switzerland to hand over bank data from before 2009.

In a separate interview with the BaslerZeitung at the weekend, Credit Suisse Chairman Urs Rohner said the unresolved tax deal was a burden.

“We are doing everything that we can and may to resolve the problem. But in the end there is a need for a solution that all involved will have to agree to.”

(Reporting by Caroline Copley; Editing by Elaine Hardcastle)

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Ohio teen sentenced to life in Craigslist murders

AKRON, Ohio (Reuters) – Seventeen-year-old Brogan Rafferty was sentenced to life in prison without parole on Friday for his role in the killing of three men and the attempted murder of another, some of whom were lured by a Craigslist ad promising work on an Ohio farm.

Rafferty was 16 when he was arrested in November 2011, but was tried as an adult. He was convicted late last month in the murders of David Pauley, 51, of Norfolk, Virginia; Ralph Geiger, 56, of Akron, Ohio; and Timothy Kern, 47, of Massillon, Ohio.

Prosecutors called the teen an apt pupil to the alleged trigger-man, Richard Beasley, 53, who is also charged in the murders.

Rafferty testified that he was terrified of the man he had considered a father figure and spiritual advisor after he saw Beasley shoot Geiger in the head execution-style.

During the trial, jurors heard testimony that the teen helped dig the graves for three of the men and was found in possession of guns and knives stolen from them after Beasley shot them.

Beasley’s trial is scheduled in the same courtroom for January 7. He faces the death penalty if convicted. Both Rafferty and Beasley’s attorneys are under a gag order and are not permitted to talk to the media.

In other incidents involving Craigslist and other social media, people advertising goods for sale or responding to ads have been attacked and killed.

In 2009, a former medical student was accused of killing a masseuse he met through Craigslist. In February, two men in Tennessee were accused of killing a man and a woman for “unfriending” the daughter of one of the suspects on Facebook.

(Reporting by Kim Palmer; Editing by Mary Wisniewski and David Brunnstrom)

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Bond bounds back to top of box office in “Skyfall”

LOS ANGELES (Reuters) – The new James Bond movie “Skyfall” dominated movie box offices with $ 87.8 million in ticket sales in its U.S. and Canadian debut over the weekend for the biggest Bond opening ever, according to studio estimates released on Sunday.

“Skyfall,” starring Daniel Craig as the famous super-spy, finished ahead of last weekend’s winner, family film “Wreck-It Ralph.” The animated Walt Disney Co movie about a videogame character grabbed $ 33.1 million from Friday through Sunday.

In third place, the Denzel Washington drama “Flight” earned $ 15.1 million. The movie tells the story of an airline captain who saves his plane from crashing but is accused of drinking before the flight.

Sony Corp’s movie studio released “Skyfall.” “Flight” was distributed by Paramount Pictures, a unit of Viacom Inc.

(Reporting by Lisa Richwine; Editing by Will Dunham)

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Novartis drug helps patients with rare inflammatory diseases

ZURICH (Reuters) – Novartis‘ Ilaris helps reduce patients’ symptoms and the frequency of attacks in two rare inflammatory diseases, mid-stage studies showed, as the Swiss drugmaker looks to expand the use of the medicine.

Results of two separate studies on Sunday in patients with Familial Mediterranean Fever (FMF) and TRAPS – rare genetic diseases which can cause fever, rash and joint pain – both met their primary endpoints, Novartis said in a statement.

Both studies are being presented at the American College of Rheumatology (ACR) meeting in Washington D.C.

Ilaris or ACZ885, which blocks a protein called interleukin-1 beta that is thought to increase inflammation, is already sold for treating cryopyrin-associated periodic syndromes, a rare inflammatory disorder.

Novartis is also hoping to file the drug this year for regulatory approval in systemic juvenile idiopathic arthritis (SJIA), a debilitating disease that can affect a child’s growth.

Results of the phase II study showed the drug helped 100 percent of FMF patients reduce the frequency of attacks by at least 50 percent during three months of treatment.

Eight of the nine patients in the trial did not have an attack during the three months and blood markers of inflammation also normalized.

There are currently no approved treatments for FMF or TRAPS, rare genetically-inherited anti-inflammatory diseases, which can affect both children and adults.

Novartis is hoping to show the drug can be beneficial in treating rare inflammatory diseases after receiving a setback last year when U.S. health regulators rejected Ilaris for use in gout over concerns about side effects.

New data from a mid-stage study on the use of Ilaris in TRAPS showed that patients who came off therapy after being treated with the drug did not have a relapse for three months on average.

Earlier data from the study showed that 90 percent of patients experienced a significant improvement in symptoms after just one week of treatment with Ilaris. This rose to 95 percent after two weeks.

(Reporting by Caroline Copley; Editing by Elaine Hardcastle)

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Czech PM Necas: Soften austerity drive to help economy – paper

PRAGUE (Reuters) – The Czech government must change tack to help the economy out of a recession and “stop scaring” the public with further budget tightening, Prime Minister Petr Necas was quoted as saying on Saturday.

Pressure has been building on his centre-right cabinet to ease its austerity zeal after the economy slid into a recession and Necas’s Civic Democrats suffered a drubbing in regional and Senate election last month as voters punished them for spending cuts and sleaze scandals.

“We have to stop all the scaring of people and show them a light at the end of the tunnel,” daily Mlada Fronta Dnes quoted Necas as saying.

He said the government should back off from pursuing tough deficit targets while the economy remains weak.

This is the first time Necas has said the cabinet must alter its policy focused primarily on trimming debt, although he stopped short of admitting what many economists have said, that the government’s stubborn fiscal cuts significantly contributed to the three-quarters old economic recession.

Government spokesman Jakub Stadler said the remarks were Necas’s personal opinion which he will discuss with the rest of the government and it was not yet decided what the new deficit targets will be.

The Czech central bank cut its main policy rate to near zero to spur spending and central banker Pavel Rezabek took a rare swipe at the government in a Reuters interview last month, saying it should stop undermining the bank’s efforts to drag the economy out of recession.

Necas said poor demand was a “psychological matter”, meaning people and businesses constantly hearing of plans for budget cuts and economic crisis in the euro zone prefer to stash money in their bank accounts in anticipation of bad times ahead rather than spend and invest.

“Ministers should not longer scare people but they should give them hope… because the government’s consolidation effort has brought results,” the paper quoted him as saying.

He said what the economy needed now was a slowdown in the government’s fiscal consolidation efforts.

The government will now ease off on its plans to cut the public sector deficit, after it has managed to slash it significantly to 3.3 percent of gross domestic product (GDP) last year from 5.8 percent in 2009, he said.

While it had been planning to trim the gap further to 2.9 percent of GDP in 2013 from an expected 3.2 percent this year, and to 2.5 percent in 2014 and 1.6 percent in 2015, Necas told the paper the government should now make do with keeping the deficit below 3 percent in those years.

“When economic growth is at around 2 percent, it will again possible to return to lowering budget deficits,” the paper quoted him as saying.

Necas’s fragile coalition government warded off collapse last week, surviving a vote of confidence after quelling a rebellion among Necas’s Civic Democrats against another series of tax hikes that it pushed through the lower house.

Two years of concerted effort by the administration to reduce debt has helped Czechs cut bond yields, or costs the country pays for borrowing money, to record lows.

The yield on the ten-year paper was 1.908/810 on Friday below levels of many euro zone member states, including for example Belgium’s 2.342/268 on a corresponding bond.

But it has made Necas’s cabinet extremely unpopular and his Civic Democrats suffered a bitter defeat in both regional and Senate elections last month.

The austerity drive also took its toll on economic growth as a plunge in government and household consumption caused the economy to contract every quarter since the final three months of 2011, while others in the region, such as neighboring Poland and Austria, grew.

(Reporting by Jana Mlcochova; Editing by Toby Chopra)

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Twin explosions strike southern Syrian city

BEIRUT (AP) — Syria‘s state-run news agency says two large explosions have struck the southern city of Daraa, causing multiple casualties and heavy material damage.

SANA did not immediately give further information or say what the target of Saturday’s explosions was.

The Britain-based Syrian Observatory for Human Rights says the blasts went off near a branch of the country’s Military Intelligence in Daraa.

The Observatory, which relies on a network of activists on the ground, says the explosions were followed by clashes between regime forces and rebels fighting to topple President Bashar Assad.

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