Wall Street falls on cliff woes after six days of S&P gains

NEW YORK (Reuters) - Stocks slid after the S&P's six days of gains on Thursday as uncertainty about Washington's "fiscal cliff" negotiations offset encouraging data on retail sales and jobless claims.

Energy and information technology sectors were the S&P 500's weakest performers, with the S&P energy index <.gspe> down 0.9 percent.

Drawn-out fiscal negotiations between Democrats and Republicans have constrained trading. There is concern that tax hikes and spending cuts, set to begin in 2013 if a deal is not reached in Washington, will hurt growth. The stock market overall, though, has taken it in stride.

Republican House Speaker John Boehner on Thursday accused President Barack Obama of "slow walking" the economy off the fiscal cliff.

"There is no conviction here and Boehner's comments - as harsh as they were - were realistic," said Jason Weisberg, managing director at Seaport Securities Corp., in New York.

"The fiscal cliff is already built in. That being said, people don't like to be told the apocalypse is coming over and over and over again. The real players in this market have already closed their books."

The S&P 500 had ended higher for six straight sessions through Wednesday's close, when it touched its highest level since October 22.

Apple's stock , down 2 percent at $527.69, was among the biggest drags on the Nasdaq in Thursday's session, while International Business Machines , down 0.6 percent at $192.95, was the biggest weight on the Dow.

The Dow Jones industrial average <.dji> slid 92.50 points, or 0.70 percent, to 13,152.95. The Standard & Poor's 500 Index <.spx> dropped 11.09 points, or 0.78 percent, to 1,417.39. The Nasdaq Composite Index <.ixic> fell 25.47 points, or 0.85 percent, to 2,988.34.

The latest data sent some positive signals on the economy, with weekly claims for jobless benefits dropping to nearly the lowest level since February 2008 and retail sales rising in November after an October decline, improving the picture for consumer spending.

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

In the energy sector, shares of Nabors Industries Ltd dropped 4.6 percent to $13.86 after Jefferies cut the drilling company's stock to "underperform" from "hold," and shares of U.S. refining company Phillips 66 lost 2.5 percent to $51.74.

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

Best Buy Co shares shot up 15.3 percent to $14.04 after a report that the company's founder is expected to offer to buy the consumer electronics retailer by the end of the week. The shares hit an intraday high at $14.48 - up 18.8 percent.

CVS Caremark Corp shares gained 2 percent to $48.49 after saying it expects higher earnings in 2013.

(Reporting by Gabriel Debenedetti and Caroline Valetkevitch; Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Jan Paschal)

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Failings Found in Trial of Ukrainian Ex-Premier

MOSCOW — In a report commissioned by the government of Ukraine, a team of American lawyers has concluded that important legal rights of the jailed former prime minister, Yulia V. Tymoshenko, were violated during her trial last year on charges of abusing her official power, and that she was wrongly imprisoned even before her conviction and sentencing.

The lawyers, led by President Obama’s former White House counsel, Gregory B. Craig, concluded that Ms. Tymoshenko was denied legal counsel at “critical stages” of her trial and that at other times her lawyers were wrongly barred from calling relevant witnesses.

Those two findings suggest that she could have some success in a pending appeal before the European Court of Human Rights.

But over all, the lawyers, from the firm of Skadden, Arps, Slate, Meagher & Flom, seemed to side heavily with the government of President Viktor F. Yanukovich, which commissioned their report. They concluded that Ms. Tymoshenko’s conviction was supported by the evidence presented at trial, and they found no evidence in the trial record to support to her main contention: that her prosecution was a politically motivated effort by Mr. Yanukovich, her archrival, to sideline her and cripple Ukraine’s main opposition party.

“The trial court based its finding of Tymoshenko’s guilt on factual determinations that had evidentiary support in the trial record,” the lawyers wrote. “Based on review of the record,” they added, “we do not believe that Tymoshenko has provided specific evidence of political motivation that would be sufficient to overturn her conviction under American standards.”

In an interview on Wednesday, Mr. Craig, one of the most connected lawyers in the Washington establishment, said his team was not able to judge the local politics that brought Ms. Tymoshenko to trial on charges of abusing her authority in agreeing to a natural gas deal with Russia when she was prime minister. He acknowledged that Secretary of State Hillary Rodham Clinton was among many Western leaders who have criticized the prosecution as crass political reprisal.

“We leave to others the question of whether this prosecution was politically motivated,” he said. “Our assignment was to look at the evidence in the record and determine whether the trial was fair.”

The report is dated September 2012, but it was held back by the Ukrainian government. It will be publicly released Thursday.

Once a strong candidate for the European Union, Ukraine has become increasingly isolated under Mr. Yanukovich’s leadership. The trial led to a sharp deterioration in relations between Ukraine and the West, and there were subsequent efforts to prosecute Ms. Tymoshenko on charges of tax evasion and embezzlement.

Ms. Tymoshenko, who has chronic back problems, was sentenced to seven years and is being held in a prison hospital in eastern Ukraine. International monitors sharply criticized parliamentary elections that were held in Ukraine in October, citing the jailing of opposition leaders as a main concern.

The Skadden lawyers sharply criticized the judge’s handling of Ms. Tymoshenko’s trial.

“Tymoshenko’s ability to present a defense in her trial appears to have been compromised to a degree that is troubling under Western standards of due process and the rule of law,” they wrote in describing how defense witnesses were barred.

Still, Ms. Tymoshenko’s supporters rejected the report as biased. Her main defense lawyer, Sergei Vlasenko, who met with the Skadden team, also accused the Yanukovich government of lying about how much it paid for the analysis. (Mr. Craig would not say what his firm was paid.)

“They are not independent lawyers,” Mr. Vlasenko said in a telephone interview from Kiev. “There were clear violations of Ukrainian and international standards.” As for the findings that supported Ms. Tymoshenko’s conviction, he said, “They received the clients’ demand: Please find something good for us.”

David M. Herszenhorn reported from Moscow, and David E. Sanger from Washington.

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Most Googled in 2012: Whitney, PSY, Sandy

LOS ANGELES (AP) — The world’s attention wavered between the tragic and the silly in 2012, and along the way, millions of people searched the Web to find out about a royal princess, the latest iPad, and a record-breaking skydiver.

Whitney Houston was the “top trending” search of the year, according to Google Inc.’s year-end “zeitgeist” report. Google‘s 12th annual roundup is “an in-depth look at the spirit of the times as seen through the billions of searches on Google over the past year,” the company said in a blog post Wednesday.

People around the globe searched en masse for news about Houston‘s accidental drowning in a bathtub just before she was to perform at a pre-Grammy Awards party in February.

Google defines topics as “trending” when they garner a high amount of traffic over a sustained period of time.

Korean rapper PSY’s “Gangnam Style” music video trotted into second spot, a testament to his self-deprecating giddy-up dance move. The video is approaching a billion views on YouTube.

Superstorm Sandy, the damaging storm that knocked out power and flooded parts of the East Coast in the midst of a U.S. presidential campaign, was third.

The next biggest trending searches globally were a pair of threes: the iPad 3 tablet from Apple Inc. and Diablo 3, a popular video game.

Rounding out the Top 10 were Kate Middleton, who made news with scandalous photos and a royal pregnancy; the 2012 Olympics in London; Amanda Todd, a Canadian teen who was found dead of an apparent suicide in October after being bullied online; Michael Clarke Duncan, the “Green Mile” actor who died of a heart attack in September at age 54; and “BBB12,” the 12th edition of “Big Brother Brasil,” a reality show featuring scantily clad men and women living together.

Some trending people, according to Google, were:

— Felix Baumgartner, an Austrian skydiver who became the first to break the sound barrier without a vehicle with a 24-mile plummet from Earth’s stratosphere;

— Jeremy Lin, the undrafted NBA star who exploded off the New York Knicks bench and sparked a wave of “Linsanity”;

— Morgan Freeman, the actor whose untimely death turned out not to be true.

The Internet also continued its rise as a popular tool for spreading addictive ideas and phrases known as “memes.” Remember LOL? If you don’t know what it means by now, someone may “Laugh Out Loud” at you.

This year, Facebook said its top memes included “TBH (To Be Honest),” ”YOLO (You Only Live Once),” ”SMH (Shake My Head).” Thanks to an endlessly fascinating U.S. presidential campaign, “Big Bird” made the list after Republican candidate Mitt Romney said he might consider cutting some funds for public broadcasting.

Yahoo said its own top-searched memes for the year included “Kony 2012,” a reference to the short film and campaign against Ugandan militia leader Joseph Kony; “stingray photobomb” for an unusual vacation snapshot that went viral; and “binders full of women,” another nod to Romney for his awkward description of his search for women cabinet members as Massachusetts’ governor.

And people were happy to pass on popular Twitter posts by retweeting them. According to Twitter, the year’s most popular retweets were President Barack Obama‘s “Four more years,” and Justin Bieber’s farewell to six-year-old fan Avalanna Routh, who died of a rare form of brain cancer: “RIP Avalanna. i love you”.

Gadgets News Headlines – Yahoo! News

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Prince William Attends The Hobbit Premiere Without Kate

By Simon Perry

12/12/2012 at 03:40 PM EST

With wife Kate resting as she copes with her pregnancy illness, Prince William stepped out solo on Wednesday evening for the premiere of The Hobbit in London.

The dashing young royal told guests at the special screening of the tale from Middle Earth that Kate would have "loved" to have attended the event. But the expectant mom has had to cancel a number of appearances while she battles severe morning sickness caused by hyperemesis gravidarum.

Tuxedoed William, 30, was the guest of honor at the royal premiere at the Odeon in London's Leicester Square, where he met filmmakers and some of the movie's stars, including Sir Ian McKellen and Cate Blanchett.

The cinema's general manager Tessa Street met William in the welcome line and asked about Kate. "I passed on my best wishes to Kate and he said, 'She would have loved to have been here if she could,' " Street told reporters.

The evening raised money for the Cinema and Television Benevolent Fund, and one of the fund's trustees Debbie Chalet also met the prince. "I said to William 'Thank you for taking the time to come and be here tonight,' because I'm sure he wants to be at home making sure Kate's okay."

Blanchett, who stars as Galadriel in The Hobbit, braved the chilly temperatures in a backless white Givenchy gown. Asked on the carpet how she was doing, she said, "I'm cold, but very excited."

Inside, just before the movie started, McKellen, who plays Gandalf in the movie, led the audience in sending best wishes to Kate.

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Congress examines science behind HGH test for NFL

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

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

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

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

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Dow briefly negative; S&P 500 pares gain

Perhaps the most exciting thing about Peter Jackson's landmark, blockbuster Lord of the Rings films was that they made fans, through a combination of stunning landscapes and intricate special effects and soaring music and dramatic spectacle, feel as though we were seeing an almost impossible elevation of the potential size and scope of movies. Here was a rich, dense, sprawling series of films that thundered like myths, that were breathtaking in their realization of some pretty huge ambitions. ...

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Web host Go Daddy appoints former Yahoo executive as CEO

(Reuters) – Go Daddy, one of the world’s biggest Internet hosting firms, appointed Yahoo Inc‘s former Chief Product Officer Blake Irving as chief executive.

He will take over from interim CEO Scott Wagner on January 7. Irving left Yahoo, where he headed a centralized products group that straddled several client types, on April 27.

“Blake Irving’s deep technology experience and his history of developing new cutting-edge products and leading large global teams make him a … compelling choice to drive Go Daddy to the next level of its … growth,” said Bob Parsons, Go Daddy’s executive chairman and founder.

Irving also served in various positions at Microsoft Corp from 1992 to 2007.

Go Daddy, which describes itself as the top provider of domain names, filed to go public in 2006 but withdrew its IPO due to poor market conditions.

(Reporting by Neha Alawadhi in Bangalore; Editing by Joyjeet Das, Maju Samuel)

Internet News Headlines – Yahoo! News

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Man Builds Full-Scale Replica of Noah's Ark

People Pets

By Stephen M. Silverman

12/11/2012 at 02:15 PM EST

Johan Huibers and his ark

Peter Dejong/AP

He may have trouble finding two animals of every kind, but Johan Huibers of the Netherlands isn't one to be dissuaded.

After 20 years, the professional builder completed his goal of building a full-scale, fully-operational version of Noah's Ark, using Genesis, books 6-9, in The Bible as his guide.

Huibers converted cubits to modern measurements to pull off the feat, reports the Associated Press, leading to an impressive wooden vessel that is 427 feet long, 95 feet wide and 75 feet high.

But just to be clear, the Dutchman, a Christian, is not expecting a flood of Biblical proportions anytime soon.

"I had a call from American television," he told AP with a laugh. "This has nothing to do with the end of the Mayan calendar."

Instead, citing what The Bible predicts might be in store for Earth, Huibers says, "I want to make people question that so that they go looking for answers." He also hopes people will ultimately find salvation through God and eternal life.

And while the ark is not currently occupied with multitudes of four-legged creatures – though there are reportedly some plastic and stuffed replicas of larger species onboard for atmosphere – there is a small petting zoo with ponies, dogs, sheep, rabbits and exotic birds aboard the ship, which is moored just south of Rotterdam, as well as a restaurant and movie theater that can seat 50.

See more photos inside the ark on CNN.com.

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APNewsBreak: DA investigating Texas cancer agency

AUSTIN, Texas (AP) — The Texas prosecutor responsible for investigating public corruption among state officials said Tuesday that he has opened an investigation into the state's troubled $3 billion cancer-fighting agency.

Gregg Cox, director of the Travis County district attorney's public integrity unit, told The Associated Press that an investigation has begun into the Cancer Prevention and Research Institute of Texas. The agency also is under investigation by the Texas attorney general's office after an $11 million grant to a private company did not receive the proper review.

Cox said his unit, which prosecutes crimes related to the operation of state government, is beginning its investigation not knowing "what, if any, crime occurred" at CPRIT.

His announcement came on the same day that CPRIT said its executive director had submitted his resignation letter and amid escalating scrutiny over the management of the nation's second-biggest pot of cancer research dollars.

CPRIT has not been able to focus on fighting the disease due to "wasted efforts expended in low value activities" during the past tumultuous eight months, Executive Director Bill Gimson wrote in a resignation letter dated Monday. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

Gimson has led the state agency since it launched in 2009. But he fell under mounting criticism over the recent disclosure that an $11 million award to a private company was never reviewed. It was the second time this year that a lucrative taxpayer-funded grant instigated backlash and raised questions about oversight.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote.

The Texas attorney general's office has said it is looking into CPRIT's $11 million grant to Dallas-based Peloton Therapeutics. An internal audit performed by the agency revealed that Peloton's proposal was approved for funding in 2010 without being reviewed by an outside panel.

Gimson said last week that Peloton's funding was the result of an honest mistake that happened when the agency was still young and in the process of installing checks and balances. Agency emails surrounding the Peloton grant are no longer available, Gimson said, and state investigators said they will work to find them.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far. The agency's former chief science officer, Nobel laureate Alfred Gilman, resigned earlier this year over a separate $20 million award that Gilman claimed received a thin review. That led some of the nation's top scientists to accuse the agency of charting a politically-driven path.

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Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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Tech titans, "cliff" hopes push indexes up

NEW YORK (Reuters) - Rising shares in technology companies helped push major stock indexes up around 1 percent on Tuesday, as the S&P 500 reached its best levels since mid-October, recouping its post-election selloff.

A 3.1 percent gain in Apple Inc's stock lifted the Nasdaq, as the largest U.S. company by market value rebounded from a week in which investors took profits before a possible tax rise next year. Prior to Tuesday's trading, Apple shares had lost 25 percent from an all-time intraday high hit in September.

Other major tech stocks also rose. Texas Instruments gained 3.8 percent to $30.97 after bumping up its profit target late Monday. That helped other chipmakers rally, with the PHLX Semiconductor index <.sox> up 2 percent. Microsoft rose 1.8 percent to $27.44.

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

The Dow Jones industrial average <.dji> gained 112.57 points, or 0.85 percent, at 13,282.45. The Standard & Poor's 500 Index <.spx> was up 13.23 points, or 0.93 percent, at 1,431.78. The Nasdaq Composite Index <.ixic> rose 40.95 points, or 1.37 percent, at 3,027.91.

Retailers like luggage maker Tumi Holding Inc and Michael Kors Holding gained on Tuesday after a positive report from Goldman Sachs Equity Research. Tumi was up 4.1 percent to $21.80, and Michael Kors gained 2.6 percent, reaching $51.08.

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

Republican House Speaker John Boehner called on President Barack Obama to propose a counter-offer on Tuesday.

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

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

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

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

Still, stocks have steadily marched higher on thin volume. The S&P 500 hovered around 1433.38 on Tuesday, retracing losses incurred in the first seven sessions after Obama's re-election. Gains were broad, with more than two shares rising for every one falling on the New York Stock Exchange and winners outpacing losers on the Nasdaq Stock Exchange by nearly three-to-one.

The U.S. Treasury is selling its remaining stake in insurer American International Group Inc . AIG's shares were up 4.7 percent at $34.94.

The Fed began a two-day policy-setting meeting on Tuesday. The central bank is expected to announce a new round of Treasury bond purchases when the meeting ends on Wednesday to replace its "Operation Twist" stimulus which expires at the end of the year.

(Editing by Kenneth Barry and Nick Zieminski)

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