Showing posts with label World. Show all posts
Showing posts with label World. Show all posts

Wall Street ends flat as investors pull back

NEW YORK (Reuters) - Stocks ended mostly flat on Wednesday, taking another pause in the recent rally that has driven the S&P 500 to five-year highs, as transportation and technology shares lost ground.


Transportation stocks were among the worst performers. Shares of CH Robinson Worldwide fell 9.7 percent to $60.50 and the stock was the biggest percentage loser on the Nasdaq 100 after the freight transport company posted a lower-than-expected adjusted quarterly profit.


Without a strong catalyst, the market could struggle to continue its rally, analysts said. The benchmark S&P 500 index has advanced 6 percent this year, reaching its highest since December 2007, while the Dow Jones industrial average <.dji> has risen above 14,000 recently.


Bank of America-Merrill Lynch analysts see a near-term pullback likely, based on strong equity inflows at the start of the year, said Dan Suzuki, the bank's equity strategist in New York.


"The fact that we've gone since November without seeing one, from a timing perspective, it wouldn't be a surprise to see one now."


With fourth-quarter earnings nearing an end, the market will be losing one of its big supports, said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago. "That's one thing that's been holding the market up," he said.


Shares of Time Warner Inc jumped 4.1 percent to $52.01 after reporting higher fourth-quarter profit that beat Wall Street estimates, as growth in its cable networks offset declines in film, TV entertainment and publishing units.


The Dow Jones industrial average <.dji> was up 7.22 points, or 0.05 percent, at 13,986.52. The Standard & Poor's 500 Index <.spx> was up 0.83 points, or 0.05 percent, at 1,512.12. The Nasdaq Composite Index <.ixic> was down 3.10 points, or 0.10 percent, at 3,168.48.


Amazon.com shares, down 1.7 percent at $262.22, led the decline on the Nasdaq.


Also causing some strain on the market, investors have been speculating about leadership changes in Spain and Italy and watching for comments from European leaders, analysts said. European Central Bank policymakers are due to meet Thursday.


The Dow Jones Transportation average <.djt> was down 0.2 percent after hitting another record high on Tuesday. The average is up 10.7 percent for the year so far and has made a series of new highs since mid-January.


According to Thomson Reuters data, of 301 companies in the S&P 500 that have reported earnings, 68.1 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters. In terms of revenue, 65.8 percent of companies have topped forecasts.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 4.7 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


Walt Disney Co's stock was up 0.4 percent at $54.52, after the company beat estimates for quarterly adjusted earnings and gave an optimistic outlook for the next few quarters.


Volume was roughly 6.5 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Advancers outpaced decliners on the NYSE by roughly 17 to 12 and on the Nasdaq by about 13 to 11.


(Editing by Bernadette Baum, Kenneth Barry and Nick Zieminski)



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Wall Street bounces back after sell-off; results a boost

NEW YORK (Reuters) - Stocks climbed on Tuesday, recovering a day after the market's biggest sell-off since November, as stronger-than-expected earnings brightened the profit picture.


Dell Inc's stock rose after the world's No. 3 computer maker agreed to be taken private in a $24.4 billion deal, the largest leveraged buyout since the 2008-2009 financial crisis. The stock gained 1.1 percent to $13.42.


All 10 S&P sectors were higher, and the S&P 500 and Nasdaq gained more than 1 percent.


The market's bounce follows a sell-off on Monday that gave the S&P 500 its biggest percentage decline since mid-November. The benchmark remains up 6 percent since the start of the year and is less than 4 percent away from its all-time closing high of 1,565.15 from October 2007.


Analysts said fourth-quarter results have been among factors helping to boost stocks. On Tuesday, Archer Daniels Midland reported revenue and adjusted fourth-quarter earnings that beat expectations, boosted by strong global demand for oilseeds. Shares rose 3.3 percent to $29.38.


"There's not a huge upside surprise by any means, but we're definitely seeing slightly better-than-expected earnings overall," said Bryant Evans, portfolio manager at Cozad Asset Management, in Champaign, Illinois.


The Dow Jones industrial average <.dji> was up 99.22 points, or 0.71 percent, at 13,979.30. The Standard & Poor's 500 Index <.spx> was up 15.58 points, or 1.04 percent, at 1,511.29. The Nasdaq Composite Index <.ixic> was up 40.41 points, or 1.29 percent, at 3,171.58.


The market shot higher at the start of the year after U.S. lawmakers were able to come to a last-minute agreement to avoid a national "fiscal cliff," but questions on spending cuts remain.


President Barack Obama on Tuesday urged Congress to pass a small package of spending cuts and tax reforms. Though the plan was quickly rebuffed by Republican leaders, investors are looking for an agreement.


"I think there's some hopefulness out there that a reasonable compromise will be made," Evans said.


Also in earnings, Estée Lauder Cos Inc reported a higher quarterly profit and raised its full-year profit forecast. The stock rose 6 percent to $64.71.


With results in from more than half of the S&P 500 companies, 69 percent have beaten profit expectations, compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters. Sixty-six percent of companies have beaten on revenue.


Fourth-quarter earnings for S&P 500 companies are expected to rise 4.5 percent, according to the data, above the 1.9 percent forecast at the start of earnings season.


On the down side, McGraw-Hill shares slumped 10.7 percent to $44.92 after the U.S. Justice Department filed a civil lawsuit seeking $5 billion over mortgage bond ratings. Standard & Poor's, a McGraw Hill unit, was accused of inflating ratings and understating risk out of a desire to gain more business from investment banks.


On Monday, McGraw-Hill stock suffered its worst one-day decline since the 1987 market crash.


Volume was roughly 6.7 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Advancers outpaced decliners on the NYSE by nearly 11 to 4 and on the Nasdaq by about 3 to 1.


(Editing by Kenneth Barry and Nick Zieminski)



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S&P 500 posts worst day since November; McGraw-Hill shares sink

NEW YORK (Reuters) - Stocks slid on Monday, giving the S&P 500 its worst day since November, as renewed worries about the euro zone crisis caused the market to pull back from recent gains.


Shares of McGraw-Hill shed 13.8 percent to $50.30, their worst daily percentage decline since the October 1987 market crash, after news the U.S. Justice Department plans to sue Standard & Poor's, a unit of McGraw-Hill, over its mortgage bond ratings. It would be the first such federal action against a credit rating agency related to the recent financial crisis.


Chevron and Wal-Mart were among the biggest drags on the Dow after analyst downgrades, and all 10 S&P 500 sectors were lower. The losses follow Friday's market climb that left the S&P 500 at a five-year high and the Dow above 14,000.


"The market is extended and due for a pullback. I think people are looking for an excuse to make sales, and there (is) the concern coming from Europe," said Michael James, senior trader at Wedbush Morgan in Los Angeles.


Spanish and Italian bond yields rose, renewing worries about the euro zone's sovereign debt crisis. Spain's prime minister faced calls to resign over a corruption scandal, while a probe of alleged misconduct involving an Italian bank was expected to widen three weeks before a national election.


Adding to market pressure, data from the U.S. Commerce Department showed overall factory orders for December were below economists' expectations.


The Dow Jones industrial average <.dji> was down 129.71 points, or 0.93 percent, at 13,880.08. The Standard & Poor's 500 Index <.spx> was down 17.46 points, or 1.15 percent, at 1,495.71. The Nasdaq Composite Index <.ixic> was down 47.93 points, or 1.51 percent, at 3,131.17.


With 18.7 billion shares traded, it was the busiest day on record for McGraw-Hill shares. Shares of ratings agency Moody's Corp fell 10.7 percent at $49.45, their worst one-day drop since August 2011.


The benchmark S&P 500 rose on Friday, leaving it roughly 60 points away from its all-time intraday high of 1,576.09, while the Dow's march above 14,000 was the highest for the index since October 2007.


The S&P index remains up about 5 percent for the year, with nearly half of the gains coming after U.S. legislators temporarily sidestepped the "fiscal cliff" of automatic tax increases and spending cuts.


The CBOE Volatility index VIX <.vix>, Wall Street's so-called fear gauge, jumped 13.7 percent.


Chevron dipped 1.1 percent to $115.20 after UBS cut its rating to neutral, while Wal-Mart Stores Inc shed 1.2 percent to $69.63 after JP Morgan lowered its rating on the world's largest retailer and reduced its price target.


Shares of household products company Clorox rose 0.7 percent to $79.72 after quarterly profit beat analysts' estimates as a severe flu season boosted sales of disinfecting wipes.


According to Thomson Reuters data, of the 256 companies in the S&P 500 that have reported earnings through Monday morning, 68.4 percent have reported earnings above analyst expectations, compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters.


S&P 500 fourth-quarter earnings are expected to rise 4.4 percent, according to the data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent forecast on October 1.


In deal news, software maker Oracle Corp agreed to buy network equipment company Acme Packet Inc for $1.7 billion net of cash. Shares of Oracle were down 3 percent at $35.13 while Acme Packet shot up 23.7 percent to $29.59.


Shares of Herbalife Ltd ended up 1.3 percent at $35.54, recovering its losses ahead of the close. The New York Post reported the seller of weight loss products is facing a probe by the Federal Trade Commission.


Volume was roughly 6.3 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Decliners outpaced advancers on the NYSE by nearly 4 to 1 and on the Nasdaq also by about 4 to 1.


(Editing by Kenneth Barry and Nick Zieminski)



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Asian shares advance after U.S. jobs, ISM

TOKYO (Reuters) - Asian shares advanced on Monday, drawing momentum from U.S. data showing some promise of a credible recovery, supported by Federal Reserve's easing plans and solid manufacturing data from Europe and China.


The yen took a break from heavy selling against the U.S. dollar and the euro, but fell to its lowest since August 2008 against the Australian and New Zealand dollars early on Monday on confidence of bold monetary support from the Bank of Japan to overcome the country's stubborn deflation.


The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> rose 0.6 percent after posting a weekly gain of 0.7 percent.


"Asian shares are likely to take the cues from the rise in U.S. equities and prices of risk assets are generally expected to face upward pressures," said Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory.


The Dow Jones industrial average <.dji> rose to 14,000 for the first time since October 2007 and the Standard & Poor's 500 Index <.spx> hit its highest point since December of that year.


U.S. data showed on Friday payrolls rose by 157,000 last month, with upward revisions for November and December, while the Institute for Supply Management said its index of national factory activity rose to its highest since April.


China followed with positive news over the weekend, saying growth in its official purchasing managers' index (PMI) for the non-manufacturing sector ticked up in January for the fourth straight monthly rise, confirming the world's second-largest economy was showing a modest recovery.


Resources-reliant Australian shares <.axjo> steadied after jumping 0.9 percent to a 21-month high on Friday. Positive economic news from China, Australia's largest export destination, usually boosts Australian investor sentiment.


South Korean shares <.ks11> were up 0.3 percent while Hong Kong shares <.hsi> added 0.7 percent.


NIKKEI MAY BE PEAKING


Japan's benchmark Nikkei stock average <.n225> rose 0.5 percent after climbing to a fresh 33-month high earlier as the yen declined. The index logged its 12th straight week of increases last week, the longest run of weekly gains since 1959. <.t/>


Nikkei has been moving in tandem with the yen's two-month-long losing streak with investors eyeing the change in the BOJ's top personnel in April for clues on the degree of the bank's reflationary policy.


"The Nikkei may be nearing its peak for now as we may get a specific name of the most likely candidate for the next BOJ governor soon. That may provide an opportunity to close long dollar/yen positions, while a firming yen will then likely spur investors to book profits on Japanese stocks," said Tetsuro Ii, the chief executive of Commons Asset Management.


The dollar eased 0.1 percent to 92.72 yen after scaling its highest since May 2010 of 92.97 on Friday, while the euro fell 0.3 percent to 126.32 yen, still near its loftiest since April 2010 of 126.97 touched on Friday.


In early Monday trade, the yen plunged to its lowest since August 2008 against both the Australian dollar, at 96.78 yen, and against the New Zealand dollar at 78.74 yen.


The euro inched down 0.1 percent to $1.3624, off Friday's 14-1/2-month peak of $1.3711 hit after data showed euro zone factories had their best month in January in nearly a year.


On Friday, the dollar index measured against a basket of key currencies fell to a 4-1/2-month low of 78.918 <.dxy>. The index was up 0.2 percent on Monday.


As economic optimism rose and concerns about the euro zone's debt difficulties eased, investors took on more risk.


Research provider TrimTabs Investment Research said on Saturday investors poured a record $77.4 billion in new cash into stock mutual funds and exchange-traded funds in January, surpassing the previous monthly record of $53.7 billion in February 2000.


In the oil market, tension across the Middle East put Brent crude on track to its biggest weekly gain since mid-November, and U.S. crude rose for an eighth straight week, although it eased 0.2 percent to $97.56 a barrel on Monday.


With the rise in equities on recovering appetite for riskier assets, safe-haven appeal waned, pushing up yields of U.S. Treasury bonds. The U.S. 10-year Treasury yield hit a nine-month high of 2.052 percent in Asia on Monday.


A weekly gauge of sentiment in the Japanese government bond market deteriorated sharply, remaining in negative territory for a fifth straight week as rising global appetite for risk sapped demand for bonds, the latest Reuters poll showed on Monday.


(Editing by Eric Meijer)



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Energy industry develops nontoxic fracking fluids






PITTSBURGH (AP) — The oil and gas industry is trying to ease environmental concerns by developing nontoxic fluids for the drilling process known as fracking, but it’s not clear whether the new product will be widely embraced by drilling companies.


Houston-based energy giant Halliburton Inc. has developed a product called CleanStim, which uses only food-industry ingredients. Other companies have developed nontoxic fluids as well.






Halliburton is in the business to provide solutions to our customers,” said production manager Nicholas Gardiner. “Those solutions have to include ways to reduce the safety or environmental concerns that the public might have.”


Environmental groups say they welcome the development but still have questions.


The chemicals in fracking fluids aren’t the only environmental concern, said George Jugovic, president of PennFuture. He said there is also concern about the large volumes of naturally occurring but exceptionally salty wastewater and air pollution.


It’s premature to say whether it will ever be feasible to have fluids for fracking that are totally nontoxic, said Scott Anderson, a senior adviser for the Environmental Defense Fund.


“But we are encouraged to some extent by recent industry efforts to at least reduce the toxicity,” Anderson said.


Fracking, short for hydraulic fracturing, has made it possible to tap into energy reserves across the nation but also has raised concerns about pollution, since large volumes of water, along with sand and hazardous chemicals, are injected deep into the ground to free the oil and gas from rock.


Regulators contend that overall, water and air pollution problems are rare, but environmental groups and some scientists say there hasn’t been enough research on those issues. The industry and many federal and state officials say the practice is safe when done properly, but faulty wells and accidents have caused problems.


Halliburton says CleanStim will provide “an extra margin of safety to people, animals and the environment in the unlikely occurrence of an incident” at a drilling site.


Gardiner said Halliburton has developed a chemistry-scoring system for the fluids, with lower scores being better. CleanStim has a zero score, he said, and is “relatively more expensive” than many traditional fracking fluids.


Both Jugovic and Anderson noted that one of the most highly publicized concerns about toxic fracking fluids hasn’t really been an issue: the suggestion that they might migrate from thousands of feet underground, up to drinking water aquifers.


“Most people agree there are no confirmed cases so far” of fracking chemicals migrating up to drinking water, Anderson said. But he added that simple spills of fluid on the surface can cause problems.


“The most likely of exposure is not from the fracking itself. It is from spills before the fracking fluid is injected,” Anderson said.


There also may be technical and cost issues that limit the acceptance of products such as CleanStim. There is tremendous variation in the type of shale rock in different parts of the country. For example, drillers use different fluids even within the same state, and the specific mix can play a large role in determining how productive a well is.


Gardiner wouldn’t say how widely used CleanStim is. “The customers who do use it certainly like the material,” he added.


Terry Engelder, a geologist at Penn State University, said he visited a well in that state last year that used just water, sand and three additives in the fracking fluid.


But Engelder added that “green” and “toxic” can be “soft words without real meaning.” He noted that consumers, businesses and farms use vast quantities of chemicals that can contribute to pollution, from cleaners and soaps to fertilizers and pesticides. Yet all those compounds are routinely flushed down the drain, ending up in nearby rivers and streams.


“Eventually industry would like to end up with a mix of just water, sand, and food-grade additives,” Engelder said of fracking. “Companies are learning to deal with fewer and fewer additives.”


Energy News Headlines – Yahoo! News





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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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NASA Honors Fallen Astronauts in Solemn Ceremony






NASA honored the memories of the seven astronauts lost 10 years ago today (Feb. 1) in the space shuttle Columbia disaster, as well as the agency’s other explorers who lost their lives in the pursuit of space exploration.


The solemn ceremony, held at the Kennedy Space Center Visitors Complex in Cape Canaveral, Fla., gathered friends and family members together to remember the lives of the Columbia’s final astronaut crew as well as the seven astronauts lost in the Challenger shuttle disaster on Jan. 28, 1986 and three astronauts who perished in the Apollo 1 fire on Jan. 27, 1967.






“We got about the business of picking up the pieces, ensuring that their loss was not in vain,” said Robert Cabana, the directory of the Kennedy Space Center. “They were doing their very best to be successful, but we are human and oftentimes when lacking sufficient data we make poor decisions and that results in tragic events like Apollo, Challenger and Columbia. I believe we’ve learned from them. We’ve risen above them but we must never forget the lessons learned in the past.”


President Barack Obama, who did not attend the ceremony, also released a statement commemorating the sacrifice made by the Columbia astronauts and the crews of Challenger and Apollo 1.


“As we undertake the next generation of discovery, today we pause to remember those who paid the ultimate sacrifice on the journey of exploration,” Obama said. “Right now we are working to fulfill their highest aspirations by pursuing a path in space never seen before, one that will eventually put Americans on Mars.” [NASA Honors Fallen Astronauts (Photos)]


NASA chief Charles Bolden, a former space shuttle commander, echoed Obama’s sentiments.


“In the years after we returned the shuttles to flight, we completed an engineering marvel,” Bolden said. “The International Space Station now soars above us, an unparalleled and unique orbiting laboratory that is our foothold to the rest of the solar system. We are in a new era of exploration, where the work and sacrifice of those who have gone before will help us once again launch American astronauts from American soil and send them farther into deep space than we have ever gone.”


Bolden attended the Ilan Ramon International Space Conference in Herzliyya, Israel, and was not able to attend the ceremony today.


NASA’s astronaut heroes


During the NASA ceremony, speakers remembered the astronauts for their dedication to curiosity and human exploration while standing at a podium in front of the “Space Mirror” — a memorial wall listing the names of every NASA crew member lost during an accident in the space agency’s history.


“We remember the astronauts that took the daring step of accepting the challenge of spaceflight,” said Eileen Collins, a retired NASA astronaut who commanded the first shuttle flight after the Columbia tragedy. “For the Columbia crew, it was a fulfillment of their dreams to have an adventure, to live and work in an environment you can’t simulate on Earth.”


“It’s a type of freedom to look down on the planet, to be part of a mission,” Collins added. “The Columbia crew was taking baby steps, but big steps begin with baby steps. They were passionate about this mission.”


The fallen astronauts were also remembered for their personal achievements. Evelyn Husband-Thompson, the widow of Columbia commander Rick Husband, shared her memories of each of the astronauts on board the space shuttle as it broke apart upon re-entry over East Texas.


“This isn’t just historic, but also personal,” Husband-Thompson said. “We remember the Columbia crew as friends.”


The space agency’s ceremony was hopeful at as well. Collins highlighted the successes of the space shuttle program. [Columbia Shuttle Disaster Explained (Infographic)]


“Despites its tragedies, its successes are also part of history. The shuttle was an engineering wonder. The shuttle was a test program, but it achieved its ultimate goal: the International Space Station,” Collins said. “We have inspired over 30 years of school children to study math and science.”


NASA’s space tragedies


The Columbia shuttle disaster occurred during re-entry when the spacecraft broke part due to heat shield damage caused during the orbiter’s launch 16 days earlier on Jan. 16, 2003. A piece of external tank foam struck the orbiter’s heat shield during liftoff, punching a hole through the orbiter’s left wing leading edge.


Columbia’s crew, which was returning home after a successful science mission, included commander Rick Husband, pilot Willie McCool, mission specialists Kalpana Chawla, Laurel Clark and David Brown, payload commander Michael Anderson and payload specialist Ilan Ramon, Israel’s first astronaut.


A subsequent investigation attributed the loss of Columbia and its crew as much to complacency in NASA’s internal culture as to the foam debris strike. The tragedy led to new heat shield repair tools and techniques for subsequent shuttle missions, an ultimately spurred the retirement of the space shuttle program altogether. The last shuttle mission flew in 2011 and today all three of NASA’s remaining orbiters are in museums.


NASA’s first space mission tragedy, the Apollo 1 fire, occurred on Jan. 27, 1967 when afire broke out in the crew capsule during a ground test, killing astronauts Gus Grissom, Ed White and Roger Chaffee.


The first space shuttle disaster would occur 19 years and one day later, on Jan. 28, 1986, when the shuttle Challenger broke apart after liftoff after an O-ring failure in one of the orbiter’s twin solid rocket boosters caused the shuttle’s external tank to explode. Killed in the explosion were astronauts Francis “Dick” Scobee, Ronald McNair, Mike Smith, Ellison Onizuka, Judy Resnik, Greg Jarvis and Connecticut teacher Christa McAuliffe. It took three years for NASA to resume shuttle missions.


Today, NASA relies on Russia’s Soyuz spacecraft to fly Americans to and from low-Earth orbit. However, space agency officials hope to rely on new privately owned spacecraft to taxi astronauts to and from the International Space Station by 2015 or later.


Follow Miriam Kramer on Twitter @mirikramer or SPACE.com @Spacedotcom. We’re also on Facebook & Google+


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Space and Astronomy News Headlines – Yahoo! News





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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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Calorie Labels Inaccurate, Experts Say






People who meticulously check the calorie counts on nutrition labels and restaurant menus are in for some bad news: the tallies may be wrong, experts say.


Recent studies show that the amount of pounding, slicing, mashing and perhaps even chewing that goes into preparing and eating food affects the number of calories people get. For some foods, a proportion of the calories in them remains “locked up” during digestion, and isn’t used by the body. People also expend some of the energy from food just digesting it; and even the bacteria in people’s guts steal a fraction of food’s calories. None of these factors are accounted for in our current system for calculating calories, which dates back more than 100 years.






Scientists have always known that calorie counts are just estimates. And over the years, some scientists have called for changes to the system. Now, researchers are again shining a spotlight on the issue, saying an overhaul of the calorie count system is needed so consumers have a better idea of exactly how many calories they get from the food they eat.


“If we’re going to put the information out there on the food label, it would be nice that it’s accurate,” said David Baer, a research physiologist at the U.S. Department of Agriculture’s Human Nutrition Research Center in Beltsville, Md. In a study last year, Baer and colleagues showed that almonds have 20 percent fewer calories than previously estimated.  Now, the researchers are considering retesting other foods, including some types of whole grains and legumes.


For the most part, the inaccuracies are small, but some foods may have actual caloric values that differ from the estimated values by as much as 50 percent, experts say. [See 9 Snack Foods: Healthy or Not?]


Counting calories


One way to measure a food’s energy, or caloric content, is by burning it in a device called a bomb calorimeter. However, this method doesn’t take into account the fact that humans lose some calories through urine and feces and as heat. Over the years, researchers have tried to figure out ways to account for these losses.


In the late 1800s and early 1900s, a man named Wilbur Atwater conducted experiments in which he calculated the number of calories in various diets, and collected people’s feces to determine how many calories were wasted. Based on these experiments, Atwater concluded that proteins and carbohydrates have about 4 calories per gram, fats have 9 calories per gram, and alcohol has 7 calories per gram.


These values are still used today. Their existence means food manufacturers and restaurants can use a simple formula to calculate the calories in their foods.


However, these values are rough estimates. Certain foods, such as those high in fiber, are not digested as well, meaning the calories we get from them would be lower than those calculated using the formula. In the 1970s, researchers introduced modified Atwater values that were intended for specific foods, such as fruits, vegetables and beans.


More changes needed


While these changes are a good start, some experts say we should do more.


Research by Rachel Carmody, a postdoctoral fellow at Harvard University’s FAS Center for Systems Biology in Cambridge, Mass., and colleagues, shows that food processing — eating a carrot that’s pureed rather than whole, for example — changes the calories we get from it. 


Food processing takes some of the work out of digestion, Carmody said, meaning that generally, a processed food will have more calories than an unprocessed food.


Calories in processed foods are likely close to the values that the Atwater system estimates. For example, if you eat a mashed potato that’s been calculated by the Atwater system to contain 300 calories, you’re likely getting most of those calories, Carmody said. But if you eat a whole, unprocessed potato of the same size, you’ll take in around 200 calories, she said.


The difference is biggest for starchy foods, like potatoes, and is lowest for meats, Carmody said. (The calories from unprocessed versus processed meats only differ by 5 to 10 percent, she said.)


The Atwater system also fails to account for structural differences in food that make some calories inaccessible to our bodies. For example, the almond study, which also accounted for calories lost in feces, suggested that some of the fat in whole almonds is locked away in a structure our bodies can’t digest. While the Atwater system says a serving of whole almonds has about 170 calories, the almond study found it actually has about 130.


“Given that the Atwater system is treating essentially all foods the same, we aren’t getting a good perspective when it come times to make dietary choices,” Carmody said.


When we digest food, we also give off energy as heat. The amount of heat we radiate depends upon the exact components of the food. For proteins, it’s about 20 to 30 percent of the food’s calories — so if we eat 100 calories worth of protein, we get about 80 calories from it, Carmody said. For fats, it’s much less, about 0 to 3 percent, she said. (So if we eat 100 calories worth of fat, we’d get 97 of those calories.)


This month, Carmody and colleagues will give a presentation at the annual meeting of the American Association for the Advancement of Science in Boston that will discuss ways in which to improve the system for calculating calories.


Does it really matter for waistlines?


Some researchers say that, on the whole, the inaccuracies in calorie estimates don’t make a big difference. “For most uses, I think they’re good enough,” said Malden Nesheim, professor of nutrition emeritus at Cornell University, in Ithaca, N.Y., and co-author of the book “Why Calories Count” (University of California Press, 2012).


People tend to eat a variety of foods, not just almonds or starches. So overestimating or underestimating the calories in one particular food will likely not have a huge impact on a person’s daily calorie intake, Nesheim said.


And generally, the omissions in the Atwater system tend to result in overestimates, meaning they likely wouldn’t interfere with weight loss.


“It would only be a problem for people who want to gain weight,” said Mary Ellen Camire, a professor at the University of Maine’s Department of Food Science & Human Nutrition in Orono.


But other researchers say the goal of a revision would be to give people as much accurate information as possible to help them make informed choices about food, Carmody said. Such a process could result in broad changes, such as new numbers for the total calories people need in a day.


“By getting a better understating of the effective calories in food, we’ll get a better sense of human energy requirement,” Carmody said.


A change to the calorie system would not be easy, Carmody said. And because of differences between individuals, it would be impossible to create a system that would work for everyone.


But researchers may be able to fill in some of the system’s biggest gaps, such as the effects of food processing and heat loss, Carmody said.


“We can start to think of simple ways to improve [the system] that will be better for the average consumer,” Carmody said.


Pass it on: An overhaul of the system we use to calculate calories is needed so people can better gauge how many calories they get from food.


Follow Rachael Rettner on Twitter @RachaelRettner, or MyHealthNewsDaily @MyHealth_MHND. We’re also on Facebook & Google+.


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S&P 500 posts biggest monthly gain since October 2011

NEW YORK (Reuters) - Stocks edged lower on Thursday on caution ahead of Friday's all-important jobs report, but the S&P 500 still posted its best monthly gain since October 2011.


The benchmark S&P 500 advanced 5.1 percent in January as investors cheered a compromise that temporarily postponed the impact of the "fiscal cliff" and fourth-quarter earnings were better than expected.


The S&P 500 registered its largest monthly advance since a rise of more than 6 percent in October 2011 and the best January showing since a 6.1 percent jump in 1997. For the month, the Dow gained 5.8 percent and the Nasdaq rose 4.1 percent.


Investors expect a pullback in equities after the recent gains, though they have bought on dips over the past four weeks. The largest daily decline on the S&P 500 so far in 2013 was Wednesday's 0.39 percent drop after data showed the economy contracted in the fourth quarter of 2012.


On Friday, the government is due to release January's employment figures at 8:30 a.m. (1330 GMT). Economists polled by Reuters expect non-farm payrolls to show employers added 160,000 jobs compared with a rise of 155,000 in December. The unemployment rate is likely to hold steady at 7.8 percent.


A survey by payroll processing company ADP on Wednesday showed private sector employment rose higher than expected last month, but the government's measure of jobless benefits claims increased last week.


"It's the calm before the potential storm. The uncertainty about tomorrow's numbers comes from that fact that we had a decent ADP report but the weekly claims were not so great," said Randy Frederick, managing director of active trading and derivatives for Charles Schwab in Austin, Texas.


In a separate report, the Commerce Department said American incomes rose 2.6 percent last month, the biggest increase since December 2004.


"We could see an overly sensitive market to a bad number tomorrow, given that we've been up without a major correction, and that makes the market sensitive to the downside."


Friday will also bring reports on consumer confidence, U.S. manufacturing, construction spending and car sales.


Limiting losses on the Nasdaq composite index, Qualcomm gained 3.9 percent to $66.02 after the world's leading supplier of chips for cellphones beat analysts' expectations for quarterly profit and revenue and raised its targets for the year.


Facebook shares fell 0.8 percent to $30.98 after falling as low as $28.74 a day after the social network company said it doubled its mobile advertising revenue in the fourth quarter. However, growth trailed some of Wall Street's most aggressive estimates.


The Dow Jones industrial average <.dji> was down 49.84 points, or 0.36 percent, at 13,860.58. The Standard & Poor's 500 Index <.spx> was down 3.85 points, or 0.26 percent, at 1,498.11. The Nasdaq Composite Index <.ixic> was down 0.18 points, or 0.01 percent, at 3,142.13.


UPS shares lost 2.4 percent to $79.29 after reporting fourth-quarter earnings that were below analysts' estimates on Thursday and forecasting weaker-than-expected profit for 2013.


Constellation Brands shares tumbled 17.4 percent to $32.36 after the U.S. Justice Department moved to stop Anheuser-Busch InBev from buying the half of Mexican brewer Grupo Modelo that it does not already own. Constellation would have distributed Corona beer in the United States if the transaction had been approved.


Thomson Reuters data through Thursday morning shows that of the 231 companies in the S&P 500 that have reported earnings this season, 69.3 percent have exceeded expectations, a higher proportion than over the past four quarters and above the average since 1994.


Overall, S&P 500 fourth-quarter earnings rose 3.7 percent, according to Thomson Reuters data. That's above a 1.9 percent forecast at the start of the earnings season but well below a 9.9 percent profit growth forecast on October 1.


(Reporting By Angela Moon; Editing by Nick Zieminski and Kenneth Barry)



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Single Adults Have Greater Heart Attack Risk






Unmarried men and women have a higher risk of having and dying from a heart attack regardless of age, a new study finds.


The study looked at a large population of people over the age of 35 in Finland from 1993 to 2002. The data came from the FINAMI myocardial infarction register, and included all fatal and nonfatal cardiac events, or acute cardiac syndromes (ACS).






A total of 15,330 cardiac events were recorded during the 10-year study, of which slightly more than half resulted in death within 28 days. The number of cardiac events was about equal for men and women.


The incidence of cardiac events was approximately 58 to 66 percent higher among unmarried men than in married men, and 60 to 65 percent higher in unmarried women than in married women, the analysis showed.


Single men and women were also more likely to die within 28 days of suffering a cardiac event. Unmarried men had a 60 to 168 percent higher 28 day-mortality rate than married men; unmarried women had a 71 to 175 percent higher rate than married women.


Among 65- to 74-year-old men, for instance, the 28-day mortality rate for unmarried men was 1,792 per 100,000 people per year, compared with just 866 per 100,000 people per year for married men. Likewise, the 28-day mortality rate for women in the same age group was 493 per 100,000 people per year for unmarried women, compared with 247 per 100,000 people per year for married women.


The 28-day “case fatality rate” — the proportion of people diagnosed with a medical condition who die of that disease within a certain period of time — was 26 percent among 35- to 64-year-old married men, 42 percent among previously married men and 51 percent among never-married men. The same statistics for women were 20 percent, 32 percent and 43 percent, respectively. The case fatality rate for single 35- to 64-year-old men and women who lived alone was also higher than that for people living with at least one other person.


An array of factors might explain the finding that being unmarried is linked to greater heart attack risk, the researchers say. Married people may have better health habits, have more support and be better off financially than single people — all factors that help them maintain their health. Living with a partner also allows for quicker and more frequent medical intervention. Additionally, married patients may receive treatment sooner in a hospital, and be more likely to take prescribed preventative medications such as aspirin or beta-blockers.


On the other hand, the researchers haven’t ruled out the possibility that people with poor health (and thus greater susceptibility to heart problems) may be more likely to be unmarried or divorced.


Previous studies have shown that being unmarried or living alone increases the risk of heart-related death and cardiovascular disease, but many have focused on men, and data on women and older age groups are missing or inconsistent. Unhappy marriages, on the other hand, can put strain on the heart — especially for women.


The new study was published today (Jan. 31) in the European Journal of Preventive Cardiology.


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


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Wall Street ends lower after Fed statement

NEW YORK (Reuters) - Stocks fell on Wednesday after the Federal Reserve said in its latest statement that economic growth had stalled but indicated the pullback was likely temporary.


Stocks were flat for most of the session prior to the Fed statement at the end of a two-day policy meeting. The Fed repeated its pledge to keep purchasing securities until employment improves substantially.


The statement followed data that showed the economy, as measured by gross domestic product, unexpectedly contracted in the fourth quarter. Economists stressed that the 0.1 percent contraction, caused partly by a plunge in government spending and lower business inventories, is not an indicator of recession.


"The unemployment rate is likely to fall below 6.5 percent next year, so the Fed may be raising interest rates as soon as mid-2014. The fiscal drag from the tax increases will be offset this quarter by rebuilding post-Sandy, so real GDP growth should still come in at 2 percent," said Kurt Karl, chief economist at Swiss Re.


The S&P 500 held above 1,500, seen by technical analysts as an inflection point that will determine the overall direction in the near term. The index is on track to post its best month since October 2011 and its best January since 1997.


"This is a very modest pullback after a steep run," said Paul Zemsky, head of asset allocation at ING Investment Management in New York.


"It is too soon for the Fed to start talking about the end of (their bond buying program). The economy needs stimulus to sustain this recovery."


Chesapeake Energy rose 6 percent to $20.11 a day after it said Aubrey McClendon would step down as chief executive. The company has had a tumultuous year in which a series of Reuters investigations triggered civil and criminal probes of the second-largest U.S. natural gas producer.


After the bell, shares of Facebook Inc fell 5.9 percent to $29.40 following the company's earnings announcement. Facebook said its revenue in the fourth quarter grew 40 percent year-on-year to $1.585 billion.


Both Boeing Co and Amazon.com shares gained after earnings beat expectations, continuing a trend this quarter of high-profile names advancing after results.


Amazon rose 4.8 percent to $272.76 and Boeing rose 1.3 percent to $74.59.


The Dow Jones industrial average <.dji> was down 44.00 points, or 0.32 percent, at 13,910.42. The Standard & Poor's 500 Index <.spx> was down 5.88 points, or 0.39 percent, at 1,501.96. The Nasdaq Composite Index <.ixic> was down 11.35 points, or 0.36 percent, at 3,142.31.


Thomson Reuters data showed that of the 192 companies in the S&P 500 that have reported earnings this season, 68.8 percent have been above analyst expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


Research In Motion shares fell 12 percent to $13.78 after the company, which is changing its name to BlackBerry, unveiled a long-delayed line of smartphones in hopes of a comeback into a market it once dominated.


Giving the market extra support, private sector employment topped forecasts with the ADP National Employment report showing 192,000 jobs were added in January, higher than the 165,000 expectation.


(Reporting by Angela Moon; Editing by Kenneth Barry)



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Exxon Mobil reports 4Q results Friday






NEW YORK (AP) — Exxon Mobil Corp. reports fourth-quarter results on Friday, and analysts expect net income will fall from a year ago, when asset sales boosted earnings. They’re still looking for the oil giant to post quarterly earnings above $ 9 billion.


With Royal Dutch Shell reporting results on Thursday and Chevron Corp. joining Exxon on Friday, oil investors will get plenty of numbers to digest over the rest of the week.






WHAT TO WATCH FOR: Investors will be looking for insight into worldwide demand for oil and natural gas, and they’ll want to learn more about Exxon’s plans for production. The weak global economy has hurt energy demand, and Exxon’s oil and gas production fell 7.5 percent in the third quarter compared with a year earlier.


WHY IT MATTERS: Exxon Mobil is the nation’s biggest oil company and jockeys for the top spot in stock market value. The company prides itself on disciplined investment in new projects and fields — too cautious to maintain solid production growth, in the minds of some analysts.


When Exxon went bold into natural gas, buying XTO Energy, it didn’t pay immediate dividends. Strong production has helped keep natural gas prices low, hurting producers.


Barclays analyst Paul Y. Cheng, in explaining why he rates Exxon shares a neutral “Equal Weight,” said in a note Wednesday that other big integrated oil companies are more compelling values and he’s still “concerned that the XTO operation will remain a drag on the company’s performance.”


Exxon’s shares fell 5 percent during the fourth quarter. Through Wednesday, they were up 5 percent so far in 2013, closing at $ 90.67, near the top of their 52-week range of $ 77.13 in June to $ 93.67 in October.


WHAT’S EXPECTED: Analysts surveyed by FactSet expect Exxon will report about $ 9.1 billion in net income on revenue of $ 115.22 billion. They expect adjusted profit will work out to $ 1.99 per share.


YEAR-AGO QUARTER: Irving, Texas-based Exxon Mobil reported net income of $ 9.4 billion on revenue of $ 121.6 billion in the fourth quarter of 2011. Earnings per share were $ 1.97.


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Wall Street advances as defensive stocks extend rally

NEW YORK (Reuters) - Stocks advanced on Tuesday, led by defensive sectors, in a sign the cash piles recently moving into the market are being put to use by cautious investors to pick up more gains.


The S&P 500 is on track to post its best monthly performance since October 2011 and its best January since 1997 as investors poured $55 billion in new cash into stock mutual funds and exchange-traded funds in January, the biggest monthly inflow on record. [ID:nL1N0AX45Q] The Dow Jones industrial average has been flirting with 14,000, a level it hasn't seen since October 2007.


Shares of Amazon.com jumped nearly 7 percent in extended trade after the world's largest Internet retailer posted fourth-quarter revenue that jumped 22 percent to $21.27 billion. The stock closed down 5.7 percent at $260.35 in regular trading.


Among rising defensive shares, which are companies relatively immune to economic swings, were drugmaker Pfizer , up 3.2 percent to $27.70 after posting earnings and AT&T , 1.6 percent higher at $34.68.


"Cyclical were moving very nicely, now you see balance with some of the defensive. Many managers use that as an internal hedge in equity portfolios," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.


She said the market is cautious ahead of Wednesday's statement following the Federal Reserve's two-day meeting. In addition, defensive stocks would hold up better if Friday's payrolls report surprises on the downside.


The S&P hovered near 1,500, and market technicians say the benchmark is at an inflection point which will determine the overall direction in the near term.


"The public is pouring in now," said Carter Worth, chief market technician at Oppenheimer & Co in New York. "It reflects complacency and that typically leads to hubris, and hubris leads to trouble. Everyone's buying."


The top performing sectors on the S&P 500 were healthcare <.spxhc> and telecom services <.splrcl>, so-called defensive sectors, both up more than 1 percent.


The energy sector also advanced, on the back of strong earnings from Valero Energy Corp and a hedge fund move to break up Hess Corp to boost investor returns.


Valero shares jumped 12.8 percent to $43.77 and Hess gained 9 percent to $68.11.


The equity gains have largely come on a strong start to earnings season, though results were mixed on Tuesday with Pfizer rising but Ford Motor Co down after its report.


Both companies reported profits that topped expectations, but Ford also forecast a wider loss in its European segment. Ford dropped 4.6 percent to $13.14 as one of the biggest percentage losers on the S&P 500.


The Dow Jones industrial average <.dji> was up 72.49 points, or 0.52 percent, at 13,954.42. The Standard & Poor's 500 Index <.spx> was up 7.66 points, or 0.51 percent, at 1,507.84. The Nasdaq Composite Index <.ixic> was down 0.64 points, or 0.02 percent, at 3,153.66.


Thomson Reuters data showed that of the 174 companies in the S&P 500 that have reported earnings this season, 68.4 percent have been above analyst expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


Disappointing outlooks from Seagate Technology and BMC Software pressured their shares. Seagate lost 9.4 percent to $33.91 and BMC fell 6.3 percent to $41.71.


D.R. Horton Inc's quarterly profit more than doubled as it managed to sell more homes at higher prices, leading the No. 1 U.S. homebuilder to forecast a good spring selling season. The stock jumped 11.8 percent to $23.82.


U.S. home prices rose in November to rack up their best yearly gain since the housing crisis began, a further sign that the sector is on the mend, but consumer confidence fell to its lowest level in more than a year in the wake of higher taxes for many Americans.


(Reporting By Angela Moon; Editing by Nick Zieminski)



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Britain Blanketed by Snow in New Satellite Image






Unusually frigid and snowy conditions blanketed much of the island of Great Britain in snow earlier this month. The winter wonderland was spotted from above by NASA’s Terra satellite on Jan. 26.


The snow started falling mid-month when a storm system blowing in from over the North Atlantic combined with unusually chilly conditions ushered in by a pattern called the Scandinavian Block, according to Accuweather.com. This high-pressure pattern sits in place over Scandinavia and funnels cold air toward the United Kingdom from over the Baltic and western Russia, according to the U.K. Met Office.






As of the afternoon of Jan. 21, Redesdale Camp, Scotland, was the nation’s leader in snowfall, with 11 inches (29 centimeters), Accuweather reported. Earlier Accuweather reports said 8 inches (20 cm) had fallen in Sennybridge, Wales, and 6 inches (15 cm) in Dunkeswell, in the southwest of England. The snows closed many schools and forced flight cancellations and delays at London’s Heathrow Airport.


Snow is a relatively uncommon sight, particularly in the southern parts of Great Britain, as the flow of the Gulf Stream funnels warm waters toward the islands, influencing the atmosphere and making conditions there milder than might be expected for the island’s northerly latitudes.


Met Office records show that the U.K. sees about 33 snow days per year, based on 1971-2000 averages, though most of this falls on higher ground where temperatures are colder. And not all of that snow even settles on the ground, with the U.K. seeing only about 16.5 days a year of snow on the ground. Scotland, situated at higher latitudes, sees a higher average, with about 52 days of snow or sleet in a given year and 27.7 days of snow on the ground, the Met Office says. It lists the snowiest place in the U.K. is Banffshire, a county in the northeastern part of Scotland, which has a yearly average of 63.8 days of snow or sleet. (At the other extreme is Cornwall, which has an average of 10.2 days of snow or sleet.)


The snowiest winter of the 20th century for the U.K. was that of 1947, the Met Office says, when snow fell every day somewhere in the country between Jan. 22 and March 17.


Since the snows came earlier this month, temperatures have gotten milder and precipitation has fallen in the form of rain, at least in the southern parts of the island. Skies had largely cleared when the Moderate Resolution Imaging Spectroradiometer (MODIS) on the Terra satellite snapped its picture of Great Britain, the NASA Earth Observatory noted, though a few remained over the western part of the island.


Southern parts of the island are currently threatened by flooding from heavy rains, with some higher elevations possibly seeing strong wind gusts, the Guardian reports.


Follow OurAmazingPlaneton Twitter @OAPlanet. We’re also on Facebook and Google+.


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Asian shares up, cautious before Fed, U.S. data

TOKYO (Reuters) - Asian shares rose on Tuesday after solid U.S. data, but investors remained cautious ahead of more U.S. economic reports and a Federal Reserve policy decision later in the week that may offer clues to the Fed's stimulus plans.


The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was up 0.3 percent.


Australian shares <.axjo> rallied 0.8 percent to a fresh 21-month high led by shares in the financials sectors as the U.S. S&P 500 index closed above 1,500 for the first time since 2007. Australian markets were closed on Monday for a holiday.


South Korean shares <.ks11> opened up 0.3 percent after touching an 8-week low the day before.


The benchmark Standard & Poor's 500 Index <.spx> eased slightly on Monday after an eight-day winning run but held above 1,500, after closing above it on Friday for the first time in more than five years.


Risk appetite has been improving overall with U.S. earnings generally solid. A rise in a gauge of planned U.S. business spending in December added to a recent run of positive global economic data, and signs of easing financial stress in the euro zone. Euro zone blue chips touched fresh 18-month peaks on Monday.


More solid U.S. growth indicators would, however, fuel speculation the Fed may mull pulling back on aggressive easing stimulus. The Fed ends a two-day policy meeting on Wednesday. The first estimate of U.S. fourth-quarter gross domestic product will be released on Wednesday, followed by non-farm payrolls on Friday.


"Ahead of key events, markets are likely to stay in ranges. But with yields on U.S. Treasury and German government bonds inching higher, one might say investors may be shifting funds to riskier assets from safe-havens," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.


"That's part of the reason why the euro has stayed firm," he said. Saito said while a rise in U.S. yields underpins the dollar against the yen, they were likely to be capped with end-month selling from exporters and options lined up between 90.50 and 91.50 yen.


The benchmark U.S. 10-year note briefly pierced 2 percent on Monday for the first time since last April.


Japan's Nikkei stock average <.n225> opened down 0.7 percent after striking a fresh 32-month high above 11,000 on Monday. <.t/>


The dollar fell 0.3 percent to 90.53 yen after touching 91.32 on Monday, its highest level since June 2010, while the euro also eased 0.3 percent to 121.75 yen from Monday's high of 122.91, its highest point since April.


(Editing by Eric Meijer)



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Chevron paid $10 million in claims from Richmond refinery fire






(Reuters) – Chevron Corp has paid $ 10 million in claims stemming from the August 6 crude unit fire at its 245,000-barrels-per-day refinery in Richmond, California, the company said.


So far, 23,900 claims have been made due to the blaze that sent a smoke column over San Francisco Bay, according to a letter Chevron sent on Monday to the Contra Costa County Hazardous Materials Program, a local health department.






At least 15,000 people complaining of respiratory problems went to area hospitals in the hours and days after the fire broke out.


In addition to individuals, Chevron said it had paid compensation to area hospitals, city of Richmond agencies and the Contra Costa County Hazardous Materials Program. The compensation to the hospitals and government agencies is for costs incurred in responding to the fire.


The company disclosed the figures in updating the progress of an internal investigation into the fire.


The crude unit, which carries out the initial refining of crude oil coming into the refinery and provides feedstock for all other units, has remained shut since the blaze.


Chevron has said that because of the shut unit, motor fuel output at the refinery has been at least halved, with other production units operating on feedstock the company has bought.


Chevron is repairing the unit and expects to restore full production in the first quarter of this year, the company has said.


The U.S. Chemical Safety Board and the California Division of Occupational Safety and Health are also investigating the fire.


(Reporting by Erwin Seba in Houston; Editing by Dale Hudson)


Energy News Headlines – Yahoo! News





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Nikkei rises as yen extends loss to new lows

TOKYO (Reuters) - Japanese equities rose on Monday as the yen extended losses to fresh lows, further improving earnings prospects for exporters as Japan's corporate reporting season enters full swing this week.


Global investor sentiment improved on Friday due to brighter prospects for the European economy and its debt crisis as well as solid U.S. corporate earnings.


Japan's Nikkei stock average <.n225> traded 0.7 percent higher after jumping 2.9 percent on Friday to log an 11th straight week of gains, its longest such run since 1971. <.t/>


Against the yen, the dollar hit 91.26 early on Monday, its highest level since June 2010 while the euro touched 122.91, its highest point since April.


New Prime Minister Shinzo Abe has called for aggressive monetary easing and huge fiscal spending to beat deflation. The yen has fallen some 13 percent since mid-November when he began making those calls as part of his election campaign.


"The potent mix of Abenomics and strong risk appetite abroad is continuing to soften the yen, which means investors will still be buying stocks," said Masayuki Doshida, senior market analyst at Rakuten Securities.


South Korean shares <.ks11> fell 0.7 percent, after closing on Friday at an eight-week low, weighed by caution ahead of fourth-quarter earnings and a stronger won hitting exporters.


U.S. stocks extended a rally to an eighth day, their best run since late 2004, with the Dow Jones industrial average <.dji> and the benchmark Standard & Poor's 500 Index <.spx> both closing at their highest in more than five years on solid U.S. corporate earnings.


The improving global macroeconomic environment has curbed interest in safe haven assets such as gold.


Spot gold steadied around $1,658.54 an ounce on Monday, still below its 200-day moving average. As riskier equities rallied on Friday, bullion saw its biggest weekly drop this year on Friday.


U.S. crude inched up 0.1 percent to $95.94 a barrel.


Investors pumped $5.65 billion into stock funds worldwide in the latest week, with most of the sum flowing into emerging market stock funds, data from EPFR Global showed on Friday.


The euro hovered near an 11-month high of $1.3480 hit on Friday. The Australian dollar stumbled to an eight-month low against the euro early on Monday.


The European Central Bank said on Friday banks will repay 137.2 billion euros ($185 billion) in 3-year loans, more cash than expected, in a sign at least parts of the financial system are returning to health. The ECB lent banks a total of more than 1 trillion euros in twin 3-year, ultra-cheap lending operations in December 2011 and February 2012, easing funding concerns.


German Ifo business morale index improved for a third consecutive month in January to its highest in more than half a year, further evidence that Europe's largest economy is gathering speed again after contracting late last year.


European shares scaled fresh multi-month peaks on Friday, led by Frankfurt's DAX index <.gdaxi> scaling five-year highs.


Data on Sunday also showed profits earned by China's industrial companies rose 17.3 percent in December from a year earlier to 895.2 billion yuan ($143.9 billion).


Investors will focus this week on the Federal Reserve's Open Market Committee statement on Wednesday and U.S. nonfarm payrolls due on Friday.


(Additional reporting by Joyce Lee in Seoul and Sophie Knight in Tokyo; Editing by Edwina Gibbs)



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Pay Dirt! Antarctic Drilling Reaches Lake Surface






U.S. scientists successfully drilled into Lake Whillans, a subglacial expanse of water hidden deep beneath the Antarctic ice sheet, they reported on Sunday (Jan. 27).


About a month ago, a similar British attempt to reach subglacial Lake Ellsworth had failed. Drilling operations for the WISSARD project (Whillans Ice Stream Subglacial Access Research Drilling), which is funded by the U.S. National Science Foundation‘s Office of Polar Programs, started on Jan. 21.






Over the next couple of days, equipment will be lowered down the 2,625-foot (800-meter)-deep hole to carry out measurements and to obtain water samples for further study on board container-based scientific laboratories on the surface. As of Sunday (Jan. 27), the WISSARD team said they may have penetrated the lake surface.


“Sensors on the hot water drill show a water pressure change, indicating that the borehole has connected with the lake,” they write on the WISSARD blog. “Verification awaits visual images from a down-borehole camera this evening. We are excited about the latest developments at the lake!” [See Photos of Subglacial Lake Whillans Drilling Site]


The bottom of the world


On Dec. 9, I visited the WISSARD test site on the Ross Ice Shelf, just off the coast of the Antarctic continent and close to McMurdo Station, as a selected member of the NSF Antarctic media visit program. The test site resembled a small factory, with generators, water tanks, labs, workshops, data centers and, of course, the actual drilling platform – all mounted on giant skis. In the background were the tractors that would pull the whole installation to Lake Whillans, across hundreds of miles of solid ice.


“This is a first go,” said Ross Powell of the University of Northern Illinois, one of WISSARD’s 13 principal investigators. “Next year we hope to return to drill more holes.”


Frank Rack, a geologic oceanographer of the University of Nebraska who leads the WISSARD drill team, explained how a powerful jet of pressurized hot water is used to melt a hole in the ice.


“Our hot water drill is state-of-the-art,” Rack said. Part of the system, including two 225-kilowatt generators and the power distribution modules, had previously been used to drill the holes for the IceCube Neutrino Observatory at the South Pole. The technique is simple in principle, but prone to unexpected problems. “My biggest worry is that something might get stuck,” Powell said. With the successful completion of the actual drilling at Lake Whillans, this worry has now been laid to rest.


A big concern for the WISSARD team has been to prevent contamination of samples from the subglacial lake with microorganisms. After all, an important goal of the project is studying the lake’s ecosystem, if it exists at all. Even at 195 degrees Fahrenheit (90 degrees Celsius) — the temperature the pressurized water for drilling is heated to — water contains a lot of spore-forming bacteria. That’s why the drilling hose is fed through a collar of ultraviolet lamps: the energetic radiation kills 99.9 percent of all microorganisms.


In contrast, the Russian team that drilled into subglacial Lake Vostok last year used kerosene to lubricate the borehole – a technique significantly less clean than hot-water-drilling.


Microbiologist Jill Mikucki of the University of Tennessee is pretty sure there might be life under the ice: microorganisms that are able to thrive in the cold, dark, isolated subglacial lakes. She doesn’t expect to encounter larger organisms, because there’s so little energy available at 2,625 feet (800 m) below the icecap, but “microbes are everywhere,” Mikucki said. “There’s even potential to find new species.”


Subglacial microbes could accelerate weathering of rocks, Mikucki explained, releasing silicon and iron that finds its way into the ocean and serves as nutrients for other life forms. “I want to find out how they help to run the planet.” [Antarctica Album: Stunning Photos of IceBridge Mission]


Hidden plumbing


Meanwhile, geologists and glaciologists are eager to learn more about water transport and ice dynamics beneath the frozen Antarctic surface. Lake Whillans lies beneath a 66-foot (20-meter) wide ice stream that moves about a meter per day, as opposed to something like a meter per year for the surrounding icecap. Little is known about the possible relation between ice streams on the surface and subglacial river systems, which have only been discovered — and charted through radar — over the past couple of decades.


“Lake Whillans is just one of a few hundred interconnected lakes,” said Powell, “and radar observations have revealed that it fills and drains in a five-to-10-year cycle. We want to find out what causes these cycles. And knowing more about ice dynamics is important to better understand the effects global warming might have on the Antarctic continent. Thanks to WISSARD, we will be able for the first time to use real field data as input in our glacialogical models.”


Even the 66-foot (80-m)-deep test drill through the Ross Ice Shelf, completed in mid-December, was of interest to scientists. An earlier program called ANDRILL (for Antarctic Drilling project), also led by Rack, encountered some unusual life forms beneath the ice, including giant anemones and previously unknown organisms looking like floating spring rolls. “Pretty surprising,” Rack said. “I have a museum guy doing the taxonomy right now, and we are writing it up for Science magazine. At the WISSARD test site we could find similar — or very different — organisms. We’ll have to see.” Results from the test drilling have not yet been released. [Life on Ice: Gallery of Cold-Loving Creatures]


Planetary scientist Britney Schmidt of the University of Texas at Austin has deployed a small, tethered robotic submersible through the test borehole. Known as SCINI (Submersible Capable of under Ice Navigation and Imaging), it is outfitted with a lamp and a camera. “It looks for everything under the ice,” Schmidt told me at her temporary office at McMurdo Station. “There’s no reason that I could think of why we would not find interesting organisms.”


In the future, Schmidt hopes to use similar techniques to search for life in the subglacial ocean of Europa, one of the four large satellites of Jupiter. “I’m not 100 percent sure that there is life on Europa,” she said, “but if it’s not there, I’d like to learn why it isn’t there.” Again, the SCINI results from the test site are not yet published, but it’s clear that projects like WISSARD are already firing the imagination of planetary scientists and astrobiologists.


It will be a while before scientists succeed in drilling through the polar ice of Mars, or through the icy crust of Europa, but the success at Lake Whillans gives them a taste of things to come. Meanwhile, WISSARD will provide geochemists and microbiologists alike with a unique picture of an integrated subglacial ecosystem. “Other systems are much easier to study,” said Mikucki, “but from Antarctica we only have limited samples so far. Since 10 percent of the Earth’s land surface is covered with ice, we really need more data to understand our planet. Antarctica is an important piece of the puzzle.”


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