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Showing posts with label World. Show all posts

Wall Street Week Ahead: Bears sleep as stocks near record highs

NEW YORK (Reuters) - U.S. stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.


Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.


The Standard & Poor's 500 Index <.spx> is up 5.4 percent this year and above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average <.dji> is just 2 percent away from all-time highs reached in October 2007. The Dow ended on Friday at 13,895.98, its highest close since October 31, 2007.


The S&P 500 has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years.


"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," said Walter Zimmermann, a technical analyst at United-ICAP, in Jersey City, New Jersey. "That may be the start of a rise that could take equities near 1,800 within the next few years."


The most recent Reuters poll of Wall Street strategists estimated the benchmark index would rise to 1,550 by year's end, a target that is 3.1 percent away from current levels. That would put the S&P 500 a stone's throw from the index's all-time intraday high of 1,576.09 reached on October 11, 2007.


The new year has brought a sharp increase in flows into U.S. equity mutual funds, and that has helped stocks rack up four straight weeks of gains, with strength in big- and small-caps alike.


That's not to say there are no concerns. Economic growth has been steady, but not as strong as many had hoped. The household unemployment rate remains high at 7.8 percent. And more than 75 percent of the stocks in the S&P 500 are above their 26-week highs, suggesting the buying has come too far, too fast.


MUTUAL FUND INVESTORS COME BACK


All 10 S&P 500 industry sectors are higher in 2013, in part because of new money flowing into equity funds. Investors in U.S.-based funds committed $3.66 billion to stock mutual funds in the latest week, the third straight week of big gains for the funds, data from Thomson Reuters' Lipper service showed on Thursday.


Energy shares <.5sp10> led the way with a gain of 6.6 percent, followed by industrials <.5sp20>, up 6.3 percent. Telecom <.5sp50>, a defensive play that underperforms in periods of growth, is the weakest sector - up 0.1 percent for the year.


More than 350 stocks hit new highs on Friday alone on the New York Stock Exchange. The Dow Jones Transportation Average <.djt> recently climbed to an all-time high, with stocks in this sector and other economic bellwethers posting strong gains almost daily.


"If you peel back the onion a little bit, you start to look at companies like Precision Castparts , Honeywell , 3M Co and Illinois Tool Works - these are big broad-based industrial companies in the United States and they are all hitting new highs, and doing very well. That is the real story," said Mike Binger, a portfolio manager at Gradient Investments, in Shoreview, Minnesota.


The gains have run across asset sizes as well. The S&P small-cap index <.spcy> has jumped 6.7 percent and the S&P mid-cap index <.mid> has shot up 7.5 percent so far this year.


Exchange-traded funds have seen year-to-date inflows of $15.6 billion, with fairly even flows across the small-, mid- and large-cap categories, according to Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.


"Investors aren't really differentiating among asset sizes. They just want broad equity exposure," Colas said.


The market has shown resilience to weak news. Last week, the S&P 500 held steady on Thursday despite a 12 percent slide in shares of Apple after the iPhone and iPad maker's results. The giant tech company is heavily weighted in both the S&P 500 and Nasdaq 100 <.ndx>. In the past, Apple's drop has suffocated stocks' broader gains.


In the last few days, the ratio of stocks hitting new highs versus those hitting new lows on a daily basis has started to diminish - a sign that the rally is narrowing to fewer names - and could be running out of gas.


Investors have also cited sentiment surveys that indicate high levels of bullishness among newsletter writers, a contrarian indicator, and momentum indicators are starting to suggest the rally has perhaps come too far.


THE FED AND JOBS ON THE AGENDA


The Federal Reserve's policymakers will meet this week for the first time this year. The Federal Open Market Committee's meeting will start on Tuesday and end on Wednesday. Most economists polled in late January expect the Fed's ultra-loose monetary policy to stay in place well into next year despite the modest growth forecast for the U.S. economy.


The market's resilience could be tested this week with Friday's release of the January non-farm payrolls report. About 155,000 jobs are forecast to have been added in the month, a Reuters poll showed. The U.S. unemployment rate is expected to hold steady at 7.8 percent.


"Staying over 1,500 sends up a flag of profit taking," Jerry Harris, president of asset management at Sterne Agee, in Birmingham, Alabama, said in reference to the S&P 500. "Since recent jobless claims have made us optimistic on payrolls, if that doesn't come through, it will be a real risk to the rally."


A number of marquee names will report earnings this week, including bellwether companies such as Caterpillar Inc , Amazon.com Inc , Ford Motor Co and Pfizer Inc .


On a historic basis, valuations remain relatively low. The S&P 500's price-to-earnings ratio sits at 15.66, just a tad above the historic level of 15.


Worries about the U.S. stock market's recent strength do not mean the market is in a bubble. Investors clearly don't feel that way at the moment.


"We're seeing more interest in equities overall, and a lot of flows from bonds into stocks," said Paul Zemsky, who helps oversee $445 billion as the New York-based head of asset allocation at ING Investment Management. "We've been increasing our exposure to risky assets."


For the past week, the Dow climbed 1.8 percent, the S&P 500 rose 1.1 percent and the Nasdaq advanced 0.5 percent.


(Wall Street Week Ahead runs every Sunday. Questions or comments on this one can be sent to ryan.vlastelica(at)thomsonreuters.com)


(Reporting by Ryan Vlastelica; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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Wall Street Week Ahead: Bears hibernate as stocks near record highs

NEW YORK (Reuters) - Stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.


Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.


The Standard & Poor's 500 Index <.spx> has gained 5.4 percent this year and closed above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average <.dji> is 2.2 percent away from all-time highs reached in October 2007. The Dow ended Friday's session at 13,895.98, its highest close since October 31, 2007.


The S&P has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years.


"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," said Walter Zimmermann, technical analyst at United-ICAP, in Jersey City, New Jersey. "That may be the start of a rise that could take equities near 1,800 within the next few years."


The most recent Reuters poll of Wall Street strategists estimated the benchmark index would rise to 1,550 by year-end, a target that is 3.1 percent away from current levels. That would put the S&P 500 a stone's throw from the index's all-time intraday high of 1,576.09 reached on October 11, 2007.


The new year has brought a sharp increase in flows into U.S. equity mutual funds, and that has helped stocks rack up four straight weeks of gains, with strength in big- and small-caps alike.


That's not to say there aren't concerns. Economic growth has been steady, but not as strong as many had hoped. The household unemployment rate remains high at 7.8 percent. And more than 75 percent of the stocks in the S&P 500 are above their 26-week highs, suggesting the buying has come too far, too fast.


MUTUAL FUND INVESTORS COME BACK


All 10 S&P 500 industry sectors are higher in 2013, in part because of new money flowing into equity funds. Investors in U.S.-based funds committed $3.66 billion to stock mutual funds in the latest week, the third straight week of big gains for the funds, data from Thomson Reuters' Lipper service showed on Thursday.


Energy shares <.5sp10> lead the way with a gain of 6.6 percent, followed by industrials <.5sp20>, up 6.3 percent. Telecom <.5sp50>, a defensive play that underperforms in periods of growth, is the weakest sector - up 0.1 percent for the year.


More than 350 stocks hit new highs on Friday alone on the New York Stock Exchange. The Dow Jones Transportation Average <.djt> recently climbed to an all-time high, with stocks in this sector and other economic bellwethers posting strong gains almost daily.


"If you peel back the onion a little bit, you start to look at companies like Precision Castparts , Honeywell , 3M Co and Illinois Tool Works - these are big, broad-based industrial companies in the U.S. and they are all hitting new highs, and doing very well. That is the real story," said Mike Binger, portfolio manager at Gradient Investments, in Shoreview, Minnesota.


The gains have run across asset sizes as well. The S&P small-cap index <.spcy> has jumped 6.7 percent and the S&P mid-cap index <.mid> has shot up 7.5 percent so far this year.


Exchange-traded funds have seen year-to-date inflows of $15.6 billion, with fairly even flows across the small-, mid- and large-cap categories, according to Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.


"Investors aren't really differentiating among asset sizes. They just want broad equity exposure," Colas said.


The market has shown resilience to weak news. On Thursday, the S&P 500 held steady despite a 12 percent slide in shares of Apple after the iPhone and iPad maker's results. The tech giant is heavily weighted in both the S&P 500 and Nasdaq 100 <.ndx> and in the past, its drop has suffocated stocks' broader gains.


JOBS DATA MAY TEST THE RALLY


In the last few days, the ratio of stocks hitting new highs versus those hitting new lows on a daily basis has started to diminish - a potential sign that the rally is narrowing to fewer names - and could be running out of gas.


Investors have also cited sentiment surveys that indicate high levels of bullishness among newsletter writers, a contrarian indicator, and momentum indicators are starting to also suggest the rally has perhaps come too far.


The market's resilience could be tested next week with Friday's release of the January non-farm payrolls report. About 155,000 jobs are seen being added in the month and the unemployment rate is expected to hold steady at 7.8 percent.


"Staying over 1,500 sends up a flag of profit taking," said Jerry Harris, president of asset management at Sterne Agee, in Birmingham, Alabama. "Since recent jobless claims have made us optimistic on payrolls, if that doesn't come through, it will be a real risk to the rally."


A number of marquee names will report earnings next week, including bellwether companies such as Caterpillar Inc , Amazon.com Inc , Ford Motor Co and Pfizer Inc .


On a historic basis, valuations remain relatively low - the S&P 500's current price-to-earnings ratio sits at 15.66, which is just a tad above the historic level of 15.


Worries about the U.S. stock market's recent strength do not mean the market is in a bubble. Investors clearly don't feel that way at the moment.


"We're seeing more interest in equities overall, and a lot of flows from bonds into stocks," said Paul Zemsky, who helps oversee $445 billion as the New York-based head of asset allocation at ING Investment Management. "We've been increasing our exposure to risky assets."


For the week, the Dow climbed 1.8 percent, the S&P 500 rose 1.1 percent and the Nasdaq advanced 0.5 percent.


(Reporting by Ryan Vlastelica; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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Antarctic rescue mission for 3 Canadians continues as weather improves






Rescue officials say efforts to locate three Canadians missing in Antarctica will continue today as weather conditions improve.


The Canadians were on a plane that went missing Wednesday during a flight from the South Pole to Terra Nova Bay.






New Zealand’s Rescue Co-ordination Centre says a plane is scheduled to fly to the area today to set up a base camp about 50 kilometres from where the missing plane’s emergency beacon was transmitting.


As soon as the weather clears, two helicopters will then start an aerial search.


Aircraft tried twice to spot the missing plane in the mountainous area, but couldn’t see it because of poor visibility and snow.


The rescue co-ordination centre says the crew of the missing aircraft have survival equipment and are well trained for the harsh environment.


Weather News Headlines – Yahoo! News





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Earnings lift Wall Street; S&P 500 advances for eighth day

NEW YORK (Reuters) - U.S. stocks rose on Friday as strong Procter & Gamble Co's earnings trumped weak housing numbers and helped carry the Standard & Poor's 500 index higher toward its longest winning streak in more than eight years.


Procter & Gamble shares rose 3.9 percent to $73.15 and gave the biggest boost to both the Dow and S&P 500 after the world's top household products maker's quarterly profit soared past expectations. The company also raised its sales and earnings outlook for the fiscal year.


But the stock market's gains were curbed after economic data showed new U.S. single-family home sales fell in December, although expectations for a continued housing sector recovery remain intact. The PHLX housing sector index <.hgx> edged up 0.15 percent.


Apple Inc dropped 2.1 percent to $441.24. The stock of the iPhone maker has dropped more than 17 percent since the start of the year on growth concerns. Friday's decline knocked the tech giant from its perch as the most valuable U.S. company, making it No. 2 after ExxonMobil Corp .


Helping to lift the Nasdaq index, Starbucks Corp , rose 4.3 percent to $56.94 after the coffee retailer reported stronger-than-expected sales in the United States and Asia.


The benchmark S&P 500 index is up 5.2 percent so far in January. The equity market's strong start this year has been attributed to solid corporate results, an agreement in Washington to extend the government's borrowing power, encouraging signs from the global economy and seasonal inflows into stocks.


Those factors helped the S&P 500 rally for a seventh day on Thursday to reach a five-year peak. But the index has struggled to convincingly climb above 1,500, a level it surpassed briefly on Thursday for the first time since December 2007.


"It looks like we are encountering a little short-term resistance. The market always likes whole numbers and 1,500 seems like as good as any," said Doug Foreman, co-chief investment officer at Kayne Anderson Rudnick Investment Management in Los Angeles.


"The earnings are coming in pretty good overall. Expectations had been pretty low for the quarter given the 'fiscal cliff' concerns, etc., so some of the stocks are acting pretty well even with numbers that are a little bit better than people had feared."


If the S&P 500 rises for an eighth day on Friday, it will be its longest winning streak since late 2004, when it rallied for nine straight days.


The Dow Jones industrial average <.dji> gained 55.58 points, or 0.40 percent, to 13,880.91. The Standard & Poor's 500 Index <.spx> climbed 5.81 points, or 0.39 percent, to 1,500.63. The Nasdaq Composite Index <.ixic> rose 14.49 points, or 0.46 percent, to 3,144.88.


Honeywell International Inc posted fourth-quarter earnings just above Wall Street's estimates, reflecting the diversified U.S. manufacturer's campaign to boost profit margins in the face of sluggish sales growth. Honeywell's stock edged up 0.1 percent to $68.33.


The initial portion of earnings season has been encouraging relative to recent expectations. Overall, S&P 500 fourth-quarter earnings growth is on track for a 2.9 percent rise, up from the forecast of a 1.9 percent gain at the start of the earnings season but well below the 9.9 percent increase in an October 1 forecast.


Thomson Reuters data through Friday showed that of the 147 S&P 500 companies that have reported earnings, 68 percent exceeded expectations. Since 1994, 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.


Halliburton Co shares jumped 5.1 percent to $39.72 after the world's second-largest oilfield services company reported higher-than-expected earnings and sales for the fourth quarter. Strong international drilling activity offset a slowdown in onshore North America work, Halliburton said.


(Editing by Jan Paschal and Kenneth Barry)



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Goodell: Don’t sweat weather for 2014 Super Bowl






NEW YORK (AP) — Super Cold?


NFL officials aren’t just bracing for potential wintry weather at next year’s Northeastern Super Bowl — they’re embracing it, Commissioner Roger Goodell said Thursday.






The first Super Bowl ever in the New York metropolitan area is almost exactly a year away in a region currently clenched by bitter cold, reviving chatter about whether the weather will chill fans’ enthusiasm. But Goodell said the league would be prepared if there’s snow, ice or low temperatures for the game on Feb. 2, 2014.


“Football is made to be played in the elements,” he said as he and New York Mayor Michael Bloomberg previewed a week of city events leading up to the championship at MetLife Stadium in East Rutherford, N.J., home of the Giants and Jets. Pre-game parties and other activities also are set in New Jersey.


“We’re going to celebrate the game here, we’re going to celebrate the weather and we’re going to make it a great experience,” Goodell said.


Jets owner Woody Johnson acknowledged that “this is going to be challenging.” But, he added, “it’s going to be a lot of fun. … We have to welcome this weather, and we will.”


The Super Bowl has never been played outdoors in a cold-weather setting before. Organizers are positioning it as a cool — perhaps literally — new experience for fans and a lucrative showcase for both New Jersey and New York City, which are sometimes grudging neighbors. Events will range from a pre-game tailgate party at the Meadowlands Racetrack in New Jersey to a four-day festival that will shut down 10 blocks of Broadway.


An early estimate suggested the 2014 Super Bowl could generate $ 550 million to $ 600 million in economic activity on both sides of the Hudson River, host committee president Al Kelly said.


For New York, the event also evokes the sports-centered spectacle Bloomberg aimed to stage when the city proposed to host the 2012 Olympics, a plan that centered on building a stadium for the Jets on Manhattan’s far West Side. A state board ultimately nixed the stadium proposal amid traffic and other concerns.


The stadium could have brought the Super Bowl itself to the city, as the NFL at one point agreed the Jets could host the 2010 game if they had the new Manhattan facility. Instead, they and the Giants got a new home in MetLife Stadium, which opened in 2010.


Much of the activity surrounding the 2014 Super Bowl will be in New Jersey. Players will stay and train there, and a media day, tailgate party and some other events will be at various New Jersey venues.


“We’re getting a good share of the economic activity,” Gov. Chris Christie said, noting “the number and quality of events” planned in his state.


New Jersey also hopes to have legal gambling on the game, at the race track. Christie signed a sports betting bill into law last year, but the NFL and other sports leagues have sued to try to stop it.


New York City, meanwhile, will close Broadway between West 34th and West 44th streets, from Jan. 29 to Feb. 1 of 2014, for a free “Super Bowl Boulevard” celebration featuring player appearances, football clinics and a 36-foot-tall “XLVIII” in Times Square.


The game’s media center, expected to host about 5,000 journalists, and the televised NFL Honors awards show also will be in the city, where NFL headquarters are located.


“I think New York City is already the nation’s Super Bowl champion of tourism,” Bloomberg said.


The city estimates it drew some 52 million visitors last year.


___


Associated Press writer David Porter in Newark, N.J., contributed to this report.


___


Follow Jennifer Peltz at http://twitter.com/jennpeltz


Weather News Headlines – Yahoo! News





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New ‘Vomiting Virus’ Strain Behind Recent US Outbreaks






A new strain of norovirus — a stomach bug that causes diarrhea and vomiting  —  was responsible for most outbreaks of the disease in the U.S. in recent months, the Centers for Disease Control and Prevention said today (Jan. 24).


Last fall, 53 percent of norovirus outbreaks (141 out of 226) were caused by the new strain, dubbed GII.4 Sydney. Between September and December, the proportion of norovirus outbreaks caused by the new strain increased from 19 percent to 58 percent, the CDC said.






Norovirus outbreaks are common this time of year, typically striking between November and April. The peak usually occurs in January, so it’s too soon to tell whether or not the new strain will cause more outbreaks this season than during previous seasons, the CDC said.


New strains of norovirus typically emerge every two to three years. The current strain was first detected in Australia last March.


“New norovirus strains often lead to more outbreaks but not always,” said Dr. Jan Vinjé, director of CaliciNet, the CDC‘s surveillance system for norovirus.


Norovirus is very contagious. Each year, about 21 million people in the U.S. fall ill from the bug, and about 800 die. Young children and the elderly are at highest risk for severe illness, the CDC said.


Fifty-one percent of outbreaks caused by the new strain were spread person to person, 20 percent were due to foodborne illness, 1 percent due to waterborne illness, and 28 percent had an unknown mode of transmission, the CDC said.


Health care workers should be aware of the potential for an increased number of norovirus infections this season, the CDC said.


Continued surveillance of the new strain will allow researchers to better assess the public health implications of the strain.


The best ways to prevent norovirus infections are hand washing with soap and water; disinfecting surfaces; rinsing fruits and vegetables; cooking shellfish thoroughly; and not preparing food or caring for others while ill, the CDC said.


Although the U.S. is currently experiencing flu and whooping cough outbreaks as well, experts say the three outbreaks are not related.


A study on the activity of the new norovirus strain is published in the Jan. 25 issue of the CDC‘s Morbidity and Mortality Weekly Report.


Pass it on: Most outbreaks of norovirus last fall were caused by a new strain of the bug.


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


Copyright 2013 MyHealthNewsDaily, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Science News Headlines – Yahoo! News





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Tech stocks lift Dow, Nasdaq; S&P holds flat

NEW YORK (Reuters) - The Dow and Nasdaq advanced on Wednesday, lifted by IBM and Google whose stronger-than-expected profits helped to alleviate growing investor concern about the tech sector.


IBM's and Google's earnings, released after Tuesday's close, were the latest reassuring fourth-quarter results that pushed the Dow and S&P 500 to five-year highs as worries about the "fiscal cliff" and euro zone debt crisis faded and earnings became the market's main focus.


International Business Machines Corp forecast better-than-anticipated 2013 results and also posted fourth-quarter earnings and revenue that beat expectations.


Shares in the world's largest technology services company climbed 4.9 percent to $205.71, its biggest advance since July, making it by far the largest boost to the Dow.


Worries about the profit potential in the tech sector had increased amid questions about waning demand for Apple Inc products and a weak outlook from Intel Corp last week.


Also helping to boost the tech sector was a 6.4 percent jump in Google Inc to $747.55. The Internet search company reported its core business outpaced expectations and revenue was higher than expected.


"That is kind of what got the Street's attention - is that tech was considered an area of vulnerability and now seems to be actually be an area of real strength, and not just in terms of the fourth quarter, but in terms of guidance," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.


Despite a 1.1 percent gain in the S&P technology sector <.splrct>, gains on the broader S&P 500 index were limited a day after the benchmark index closed at a fresh 5-year high.


The recent gains have been largely fueled by a stronger-than-expected start to the earning season, pushing the benchmark S&P index near the 1,500 level, last reached on December 12, 2007, and may make additional gains harder to come by after a 4.6 increase for the month.


"It's only reasonable to expect some sort of resistance when you get to that all-important level, the fact that here it is Jan 23 and we are brushing up against it, is really impressive," Kenny said.


With tech earnings strong, Thomson Reuters data through Wednesday shows that of the 99 S&P 500 companies that have reported earnings so far, 67.7 percent have topped expectations, above the 62 percent average since 1994 and the 65 percent average over the past four quarters.


The Dow Jones industrial average <.dji> gained 67.98 points, or 0.50 percent, to 13,780.19. The Standard & Poor's 500 Index <.spx> added 1.36 points, or 0.09 percent, to 1,493.92. The Nasdaq Composite Index <.ixic> rose 11.50 points, or 0.37 percent, to 3,154.68.


McDonald's edged up 0.5 percent to $93.37 after reporting a rise in fourth-quarter earnings, lifted by an increase in same-store sales. Fellow Dow component United Technology Corp's earnings fell from the prior year, hurt by large restructuring charges. Shares climbed 0.6 percent to $87.98.


On the downside, leather-goods maker Coach Inc plunged 15.48 percent to $51.31 as the S&P's worst performer after reporting sales that missed expectations. The S&P consumer discretionary sector <.splrcd> slipped 0.3 percent.


After the market closes, investors will scour Apple's results, with the options market bracing for a big move in Apple shares after its earnings, amid a dramatic plunge for the world's most valuable publicly traded company. Apple shares rose 0.4 percent to $507.04 on Wednesday.


Overall, S&P 500 fourth-quarter earnings rose 2.8 percent, according to Thomson Reuters data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast on October 1, the data showed.


Republican leaders in the U.S. House of Representatives began considering a Republican measure on Wednesday to extend the U.S. debt limit for nearly four months but many Democrats vowed to oppose the measure, calling it a gimmick that sets up a new "fiscal cliff.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)



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How Much Will Tar Sands Oil Add to Global Warming?






James Hansen has been publicly speaking about climate change since 1988. The NASA climatologist testified to Congress that year and he’s been testifying ever since to crowds large and small, most recently to a small gathering of religious leaders outside the White House last week. The grandfatherly scientist has the long face of a man used to seeing bad news in the numbers and speaks with the thick, even cadence of the northern Midwest, where he grew up, a trait that also helps ensure that his sometimes convoluted science gets across.

This cautious man has also been arrested multiple times.


His acts of civil disobedience started in 2009, and he was first arrested in 2011 for protesting the development of Canada’s tar sands and, especially, the Keystone XL pipeline proposal that would serve to open the spigot for such oil even wider. “To avoid passing tipping points, such as initiation of the collapse of the West Antarctic Ice Sheet, we need to limit the climate forcing severely. It’s still possible to do that, if we phase down carbon emissions rapidly, but that means moving expeditiously to clean energies of the future,” he explains. “Moving to tar sands, one of the dirtiest, most carbon-intensive fuels on the planet, is a step in exactly the opposite direction, indicating either that governments don’t understand the situation or that they just don’t give a damn.”






He adds: “People who care should draw the line.”


Hansen is not alone in caring. In addition to a groundswell of opposition to the 2,700-kilometer-long Keystone pipeline, 17 of his fellow climate scientists joined him in signing a letter urging Pres. Barack Obama to reject the project last week. Simply put, building the pipeline—and enabling more tar sands production—runs “counter to both national and planetary interests,” the researchers wrote. “The year of review that you asked for on the project made it clear exactly how pressing the climate issue really is.” Obama seemed to agree in his second inaugural address this week, noting “we will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations.”


At the same time, the U.S. imports nearly nine million barrels of oil per day and burns nearly a billion metric tons of coal annually. China’s coal burning is even larger and continues to grow by leaps and bounds. Partially as a result, global emissions of greenhouse gases continue to grow by leaps and bounds too—and China is one alternative customer eager for the oil from Canada’s tar sands. Neither developed nor developing nations will break the fossil-fuel addiction overnight, and there are still more than a billion people who would benefit from more fossil-fuel burning to help lift them out of energy poverty. The question lurking behind the fight in North America over Keystone, the tar sands and climate change generally is: How much of the planet’s remaining fossil fuels can we burn?


The trillion-tonne question
To begin to estimate how much fossil fuels can be burned, one has to begin with a guess about how sensitive the global climate really is to additional carbon dioxide. If you think the climate is vulnerable to even small changes in concentrations of greenhouse gases—as Hansen and others do—then we have already gone too far. Global concentrations of greenhouse gases in the atmosphere have reached 394 parts per million, up from 280 ppm before the Industrial Revolution and the highest levels seen in at least 800,000 years. Hansen’s math suggests 350 ppm would be a safer level, given that with less than a degree Celsius of warming from present greenhouse gas concentrations, the world is already losing ice at an alarming rate, among other faster-than-expected climate changes.


International governments have determined that 450 ppm is a number more to their liking, which, it is argued, will keep the globe’s average temperatures from warming more than 2 degrees C. Regardless, the world is presently on track to achieve concentrations well above that number. Scientists since chemist Svante Arrhenius of Sweden in 1896 have noted that reaching concentrations of roughly 560 ppm would likely result in a world with average temperatures roughly 3 degrees C warmer—and subsequent estimates continue to bear his laborious, hand-written calculations out. Of course, rolling back greenhouse gas concentrations to Hansen’s preferred 350 ppm—or any other number for that matter—is a profoundly unnatural idea. Stasis is not often found in the natural world.


Concentrations of greenhouse gases in the atmosphere may not be the best metric for combating climate change anyway. “What matters is our total emission rate,” notes climate modeler Ken Caldeira of the Carnegie Institution for Science Department of Global Ecology at Stanford University, another signee of the anti-Keystone letter. “From the perspective of the climate system, a CO2 molecule is a CO2 molecule and it doesn’t matter if it came from coal versus natural gas.”


Physicist Myles Allen of the University of Oxford in England and colleagues estimated that the world could afford to put one trillion metric tons of carbon into the atmosphere by 2050 to have any chance of restraining global warming below 2 degrees C. To date, fossil fuel burning, deforestation and other actions have put nearly 570 billion metric tons of carbon in the atmosphere—and Allen estimates the trillionth metric ton of carbon will be emitted around the summer of 2041 at present rates. “Tons of carbon is fundamental,” adds Hansen, who has argued that burning all available fossil fuels would result in global warming of more than 10 degrees C. “It does not matter much how fast you burn it.”


Alberta’s oil sands represent a significant tonnage of carbon. With today’s technology there are roughly 170 billion barrels of oil to be recovered in the tar sands, and an additional 1.63 trillion barrels worth underground if every last bit of bitumen could be separated from sand. “The amount of CO2 locked up in Alberta tar sands is enormous,” notes mechanical engineer John Abraham of the University of Saint Thomas in Minnesota, another signer of the Keystone protest letter from scientists. “If we burn all the tar sand oil, the temperature rise, just from burning that tar sand, will be half of what we’ve already seen”—an estimated additional nearly 0.4 degree C from Alberta alone.


As it stands, the oil sands industry has greenhouse gas emissions greater than New Zealand and Kenya—combined. If all the bitumen in those sands could be burned, another 240 billion metric tons of carbon would be added to the atmosphere and, even if just the oil sands recoverable with today’s technology get burned, 22 billion metric tons of carbon would reach the sky. And reserves usually expand over time as technology develops, otherwise the world would have run out of recoverable oil long ago.


The greenhouse gas emissions of mining and upgrading tar sands is roughly 79 kilograms per barrel of oil presently, whereas melting out the bitumen in place requires burning a lot of natural gas—boosting emissions to more than 116 kilograms per barrel, according to oil industry consultants IHS Cambridge Energy Research Associates. All told, producing and processing tar sands oil results in roughly 14 percent more greenhouse gas emissions than the average oil used in the U.S. And greenhouse gas emissions per barrel have stopped improving and started increasing slightly, thanks to increasing development of greenhouse gas–intensive melting-in-place projects. “Emissions have doubled since 1990 and will double again by 2020,” says Jennifer Grant, director of oil sands research at environmental group Pembina Institute in Canada.


Just one mine expansion, Shell’s Jackpine mine, currently under consideration for the Albian mega-mine site, would increase greenhouse gas emissions by 1.18 million metric tons per year. “If Keystone is approved then we’re locking in a several more decades of dependence on fossil fuels,” says climate modeler Daniel Harvey of the University of Toronto. “That means higher CO2 emissions, higher concentrations [in the atmosphere] and greater warming that our children and grandchildren have to deal with.”


And then there’s all the carbon that has to come out of the bitumen to turn it into a usable crude oil.


Hidden carbon
In the U.S. State Department’s review of the potential environmental impacts of the Keystone project, consultants EnSys Energy suggested that building the pipeline would not have “any significant impact” on greenhouse gas emissions, largely because Canada’s tar sands would likely be developed anyway. But the Keystone pipeline represents the ability to carry away an additional 830,000 barrels per day—and the Albertan tar sands are already bumping up against constraints in the ability to move their product. That has led some to begin shipping the oil by train, truck and barge—further increasing the greenhouse gas emissions—and there is a proposal to build a new rail line, capable of carrying five million barrels of oil per year from Fort McMurray to Alaska’s Valdez oil terminal.


Then there’s the carbon hidden in the bitumen itself. Either near oil sands mines in the mini-refineries known as upgraders or farther south after the bitumen has reached Midwestern or Gulf Coast refineries, its long, tarry hydrocarbon chains are cracked into the shorter, lighter hydrocarbons used as gasoline, diesel and jet fuel. The residue of this process is a nearly pure black carbon known as petroleum (pet) coke that, if it builds up, has to be blasted loose, as if mining for coal in industrial equipment. The coke is, in fact, a kind of coal and is often burned in the dirtiest fossil fuel’s stead. Canadian tar sands upgraders produce roughly 10 million metric tons of the stuff annually, whereas U.S. refineries pump out more than 61 million metric tons per year.


Pet coke is possibly the dirtiest fossil fuel available, emitting at least 30 percent more CO2 per ton than an equivalent amount of the lowest quality mined coals. According to multiple reports from independent analysts, the production (and eventual burning) of such petroleum coke is not included in industry estimates of tar sands greenhouse gas emissions because it is a co-product. Even without it, the Congressional Research Service estimates that tar sands oil results in at least 14 percent more greenhouse gas emissions than do more conventional crude oils.


Although tar sands may be among the least climate-friendly oil produced at present—edging out alternatives such as fracking for oil trapped in shale deposits in North Dakota and flaring the gas—the industry has made attempts to reduce greenhouse gas pollution, unlike in other oil-producing regions. For example, there are alternatives to cracking bitumen and making pet coke, albeit more expensive ones, such as adding hydrogen to the cracked bitumen, a process that leaves little carbon behind that is employed by Shell, among others.


More recently, Shell has begun adding carbon-capture-and-storage (CCS) technology to capture the emissions from a few of its own upgraders, a project known as Quest. The program, when completed in 2015, will aim to capture and store one million metric tons of CO2 per year, or a little more than a third of the CO2 emissions of Shell’s operation at that site. And tar sands producers do face a price on carbon—$ 15 per metric ton by Alberta provincial regulation—for any emissions above a goal of reducing by 12 percent the total amount of greenhouse gas emitted per total number of barrels produced.


The funds collected—some $ 312 million to date—are then used to invest in clean technology, but more than 75 percent of the projects are focused on reducing emissions from oil sands, unconventional oils and other fossil fuels. And to drive more companies to implement CCS in the oil sands would require a carbon price of $ 100 per metric ton or more. “We don’t have a price on carbon in the province that is compelling companies to pursue CCS,” Pembina’s Grant argues.


In fact, Alberta’s carbon price may be little more than political cover. “It gives us some ammunition when people attack us for our carbon footprint, if nothing else,” former Alberta Energy Minister Ron Liepert told Scientific American in September 2011. Adds Beverly Yee, assistant deputy minister at Alberta’s Environment and Sustainable Resource Development agency, more recently, “Greenhouse gases? We don’t see that as a regional issue.” From the individual driver in the U.S. to oil sands workers and on up to the highest echelons of government in North America, everyone dodges responsibility.


Price of carbon
A true price on carbon, one that incorporates all the damages that could be inflicted by catastrophic climate change, is exactly what Hansen believes is needed to ensure that more fossil fuels, like the tar sands, stay buried. In his preferred scheme, a price on carbon that slowly ratcheted up would be collected either where the fossil fuel comes out of the ground or enters a given country, such as at a port. But instead of that tax filling government coffers, the collected revenue should be rebated in full to all legal residents in equal amounts—an approach he calls fee and dividend. “Not one penny to reducing the national debt or off-setting some other tax,” the government scientist argues. “Those are euphemisms for giving the money to government, allowing them to spend more.”


Such a carbon tax would make fossil fuels more expensive than alternatives, whether renewable resources such as wind and sun or low-carbon nuclear power. As a result, these latter technologies might begin to displace things like coal-burning power plants or halt major investments in oil infrastructure like the Keystone XL pipeline.


As it stands, producing 1.8 million barrels per day of tar sands oil resulted in the emissions of some 47.1 million metric tons of CO2-equivalent in 2011, up nearly 2 percent from the year before and still growing, according to the Canadian Association of Petroleum Producers. In the same year coal-fired power plants in the U.S. emitted more than two billion metric tons of CO2-equivalent. “If you think that using other petroleum sources is much better [than tar sands], then you’re delusional,” says chemical engineer Murray Gray, scientific director of the Center for Oil Sands Innovation at the University of Alberta.


In other words, tar sands are just a part of the fossil-fuel addiction—but still an important part. Projects either approved or under construction would expand tar sands production to over five million barrels per day by 2030. “Any expansion of an energy system that relies on the atmosphere to be its waste dump is bad news, whereas expansion of safe, affordable and environmentally acceptable energy technologies is good news,” Carnegie’s Caldeira says.


There’s a lot of bad news these days then, from fracking shale for gas and oil in the U.S. to new coal mines in China. Oxford’s Allen calculates that the world needs to begin reducing emissions by roughly 2.5 percent per year, starting now, in order to hit the trillion metric ton target by 2050. Instead emissions hit a new record this past year, increasing 3 percent to 34.7 billion metric tons of CO2 and other greenhouse gases.


Stopping even more bad news is why Hansen expects to be arrested again, whether at a protest against mountaintop removal mining for coal in West Virginia or a sit-in outside the White House to convince the Obama administration to say no to Keystone XL and any expansion of the tar sands industry. The Obama administration has already approved the southern half of the pipeline proposal—and if the northern link is approved, a decision expected after March of this year, environmental group Oil Change International estimates that tar sands refined on the Gulf Coast would produce 16.6 million metric tons of CO2 annually, along with enough petroleum coke to fuel five coal-fired power plants for a year. All told, the increased tar sands production as a result of opening Keystone would be equal to opening six new coal-fired power plants, according to Pembina Institute calculations.


Even as increased oil production in the U.S. diminishes the demand for tar sands-derived fuel domestically, if Keystone reaches the Gulf Coast, that oil will still be refined and exported. At the same time, Obama pledged to respond to climate change and argued for U.S. leadership in the transition to “sustainable energy sources” during his second inaugural address; approving Keystone might lead in the opposite direction.


For the tar sands “the climate forcing per unit energy is higher than most fossil fuels,” argues Hansen, who believes he is fighting for the global climate his five grandchildren will endure—or enjoy. After all, none of his grandchildren have lived through a month with colder than average daily temperatures. There has not been one in the U.S. since February 1985, before even Hansen started testifying on global warming. As he says: “Going after tar sands—incredibly dirty, destroying the local environment for a very carbon-intensive fuel—is the sign of a terribly crazed addict.”Follow Scientific American on Twitter @SciAm and @SciamBlogs.Visit ScientificAmerican.com for the latest in science, health and technology news.
© 2013 ScientificAmerican.com. All rights reserved.


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Dow, S&P 500 edge higher as earnings eyed


NEW YORK (Reuters) - Stocks mostly edged up on Tuesday after ending last week at five-year highs, but gains were limited with investors showing caution as the earnings season picks up speed.


Both the Dow and the Standard & Poor's 500 closed at five-year highs on Friday, boosted by better-than-expected results in the early part of the earnings season. Although major companies have issued bullish statements, many investors remain wary that economic uncertainty in the fourth quarter dented earnings and revenues.


"The market is playing wait-and-see to see the way the earnings come in this week because you've got some biggies," said Fred Dickson, chief market strategist at D.A. Davidson & Co., in Lake Oswego, Oregon.


Recent concerns about waning demand for Apple Inc products and a weak outlook from Intel Corp have diminished optimism about the tech sector's prospects. The S&P technology sector index, down 0.4 percent, was the worst performing of the 10 major S&P 500 sectors on Tuesday.


Major tech companies scheduled to report results after the market's close on Tuesday include Google Inc, International Business Machines and Texas Instruments. Tech bellwethers Apple and Microsoft Corp are also set to report earnings this week.


"Any one of those, if there is a big surprise up or down, could shift the balance in the markets. So investors are being far more cautious than normal, especially with the market averages having broken out to five-year highs," Dickson said.


The Dow Jones industrial average gained 31.32 points, or 0.23 percent, to 13,681.02. The Standard & Poor's 500 Index added 1.48 points, or 0.10 percent, to 1,487.46. The Nasdaq Composite Index slipped 4.42 points, or 0.14 percent, to 3,130.29.


Four Dow components reported early on Tuesday, and three rose on the results. Insurer Travelers Cos was the standout, climbing 2.6 percent to $78.33 and giving the biggest boost to the Dow after the company forecast higher premiums across its business.


DuPont, the largest U.S. chemical company by market capitalization, reported revenue that exceeded Wall Street's expectations, while Verizon Communications Inc also posted revenue that beat forecasts.


Shares of DuPont shot up 1.6 percent to $47.75 while Verizon's stock rose 0.9 percent to $42.94.


On the downside, shares of Johnson & Johnson, the diversified health company, slipped 0.6 percent to $72.79 after the Dow component forecast 2013 earnings below expectations.


According to Thomson Reuters data through Tuesday morning, of the 74 companies in the S&P 500 that have reported earnings so far, 62.2 percent have topped expectations, roughly even with the 62 percent average since 1994, but below the 65 percent average over the past four quarters.


Overall, S&P 500 fourth-quarter earnings are forecast to have risen 2.6 percent. That estimate is above the 1.9 percent forecast from the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast from October 1, the data showed.


Economic data from the National Association of Realtors showed existing-home sales unexpectedly fell 1 percent in December, which was below expectations, but not a big enough dip to suggest the housing market's recovery may be in jeopardy.


Republican leaders in the U.S. House of Representatives said they aim on Wednesday to pass a nearly four-month extension of the U.S. debt limit, allowing the government to borrow enough to meet its obligations during that period.


Markets have recently been pressured by uncertainty stemming from Washington about the federal debt limit and spending cuts that could hamper U.S. growth.


U.S.-listed shares of Research in Motion jumped 9.6 percent to $17.36 a day after its chief executive said the Canadian company may consider strategic alliances with other companies after the launch of devices powered by RIM's new BlackBerry 10 operating system.


(Editing by Jan Paschal)



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Andes Glaciers Vanishing Rapidly, Study Finds






The glaciers of the Andes Mountains have retreated at an unprecedented rate in the past three decades, with more ice lost than at any other time in the last 400 years.


That’s according to a new review of research that combines on-the-ground observations with aerial and satellite photos, historical records and dates from cores of ice extracted from the glaciers. The retreat is worse in the Andes than the average glacier loss around the world, the researchers report today (Jan. 22) in the journal The Cryosphere.






“Tropical Andes glaciers have lost on average between 30 to 50 percent (depending on the mountain ranges) of their surface since the late 70s,” study researcher Antoine Rabatel, a scientist at the Laboratory for Glaciology and Environmental Geophysics in Grenoble, France, wrote in an email to LiveScience.  


Sensitive glaciers


The Andes Mountains of South America are home to 99 percent of tropical glaciers ­— permanent rivers of ice at high enough elevations not to be affected by the types of balmy temperatures usually associated with the tropics. But these glaciers are particularly sensitive to climate change, because there is little seasonality in temperatures in the tropics, Rabatel said.


“Glaciers of the tropical Andes react strongly and more rapidly than other glaciers on Earth to any changes in climate conditions,” he said. [Ice World: Gallery of Awe-Inspiring Glaciers]


To piece together the story of the glaciers over the past centuries, Rabatel and his colleagues drew on disparate strands of data. Historical records from early settlements reveal glacier boundaries, as does ice core data taken by drilling down into the annual layers of ice that make up glaciers. Even the lichens (symbiotic organsism made of fungus and an algae or bacteria) that survive on the rocky debris, or moraine, that forms around a glacier have a story to tell. Researchers can date these lichens to determine how long ago the rocks were exposed and free of ice.


Aerial photographs dating back to the 1950s and satellite imagery from as far back as the 1970s also tracks the glaciers’ movements. Finally, direct, ground-based observations have been in place at many glaciers since the 1990s.


Retreat of the glaciers


All together, the data tell a story of ice loss. The Andean glaciers reached their maximum extents in the Little Ice Age, a cool period that lasted from about the 16th to 19th centuries. In the outer tropics of Peru and Bolivia, the glaciers hit their maximums in the 1600s, the researchers found. The highest Andean glaciers maxed out in the 1730s or so, while lower-elevation glaciers reached their peaks around the 1830s.


Since then, the glaciers have gradually withdrawn, with one period of accelerated melt in the late 1800s and a second, much larger, accelerated melt period in the past three decades. Since the 1970s, the glaciers have followed a pattern of periods of accelerated melt with two to three years in between of slower retreat and occasional advance (or growth). But while there have been scattered good years for the glaciers in which more new ice formed than was lost, the overall average has been permanently negative over the past 50 years, the researchers wrote.


The average loss of 30 percent to 50 percent varies widely from glacier to glacier, Rabatel said. Some small glaciers have completely disappeared, such as the Chacaltaya glacier of Bolivia, which was once the world’s highest ski resort, but which vanished in 2009.


Lower-altitude glaciers below about 17,700 feet (5400 meters) above sea level are melting twice as fast as those at higher elevations. These low glaciers, which make up the majority of Andes glaciers, are expected to vanish within years or decades, Rabatel said.


Precipitation in the region has not changed, the researchers found, but temperatures have risen nearly 0.2 degrees Fahrenheit (0.1 degrees Celsius) per decade over the last 70 years. That means it’s likely atmospheric heat rather than lack of snow is driving the glacier retreat.


The looming loss of the glaciers is a major problem for the people living in arid regions west of the Andes, Rabatel said.


“The supply of water from high-altitude glacierized mountain chains is important for agricultural and domestic consumption, as well as for hydropower,” he wrote.


Follow Stephanie Pappas on Twitter @sipappas or LiveScience @livescience. We’re also on Facebook & Google+.


Copyright 2013 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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European shares test two-year highs, yen volatile before BOJ

LONDON (Reuters) - European shares inched towards two-year highs on Monday, as a political attempt to break a budget impasse in the United States and expectations of aggressive Japanese stimulus bolstered the appetite for shares.


U.S. House Republican leaders said on Friday they would seek to pass a three-month extension of federal borrowing authority in the coming days to buy time for the Democrat-controlled Senate to pass a plan to shrink budget deficits.


European shares <.fteu3> were supported by the news <.eu>, but with no clear response from the Democrats and a thin session expected due to a market holiday in the United States, the impact on assets such as bonds and commodities was limited.


By 1500 GMT London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> were up 0.4 to 0.6 percent, leaving the pan-European FTSEurofirst 300 within touching distance of a two-year high and MSCI's world index <.miwd00000pus> steady at a 20-month high. <.l><.eu/>


Expectations that the Bank of Japan will deliver a bold monetary easing plan at the end of its two-day meeting on Tuesday also supported shares and created choppy conditions in the currency market.


According to sources familiar with the BoJ's thinking, the government of new Prime Minister Shinzo Abe and the central bank have agreed to set 2 percent inflation as a new target, supplanting a softer 1 percent 'goal'.


The yen, which has fallen 13 percent against the dollar over the last two months as the shift in Japanese policy has taken shape, touched a new 2-1/2 year low in early trading but then firmed as traders cut short positions given the BOJ has often fallen short of market expectations.


"Investors are being mindful that the moves we have seen over the course of the last month or two are just worth locking in at least until we understand how the BOJ are really going to play in the future," said Jeremy Stretch, head of currency strategy at CIBC World Markets.


CURRENCY WARS


Japanese equities have surged in recent weeks in anticipation of a more aggressive monetary policy stance, but not everyone is happy.


The slump in the yen has prompted Russia's deputy central bank governor to warn of a new round of 'currency wars' and the medium-term risk of running ultra-loose monetary policies is likely to be a theme of the World Economic Forum in Davos, which opens on Wednesday.


With little in the way of economic data or debt issuance and U.S. markets shut for the Martin Luther King public holiday, the rest of the day was expected to be a fairly quiet for investors.


As the first European finance ministers' meeting of the year got under way, most euro zone government bonds were trading virtually flat and the euro was steady at $1.3316.


Market pressure on Europe is now less intense thanks to the European Central Bank's promise to prevent a collapse of the euro. Policymakers are set to discuss Cyprus's plight and plans for the euro zone's bailout fund to directly recapitalize banks.


French Finance Minister Pierre Moscovici said as he arrived at the Brussels meeting that a proper recapitalization strategy was very important.


"Negotiations will be complex, and a final decision is unlikely to emerge soon. Risks for sovereign spreads in the periphery should be limited, but we have some concerns that the long-term solution may fall short of what a real banking union needs," said UniCredit economist Marco Valli.


POLITICAL GAME


The efforts by Republican lawmakers to give the U.S. government leeway to pay its bills for another three months dented demand for safe haven assets and pushed German government bond yields near the top of this year's range.


The U.S. Treasury needs congressional authorization to raise the current $16.4 trillion limit on U.S. debt sometime between mid-February and early March. A failure to achieve that could lead to a debt default.


"This is part of the political game, it remains to be seen whether the Democrats will accept it," KBC strategist Piet Lammens said, adding that investors' working scenario was that a solution to raise the ceiling would be eventually found anyway.


One of the key factors that drove 2-year German yields higher last week was also the prospect of sizeable early repayments of the 1 trillion euros euro zone banks took from the ECB roughly a year ago.


The central bank will publish on Friday how much banks plan to return at the optional first repayment date on January 30. A Reuters poll on Monday showed around 100 billion euros are expected to be repaid although some predict it could be as high as 250 billion.


OIL OVERSUPPLY


German markets showed no reaction after the country's center-left opposition party edged Chancellor Angela Merkel's conservatives from power in a regional election on Sunday, reviving its flagging hopes for September's national election.


The Bundesbank's latest report delivered an upbeat message on the country's economy, saying a recent slump should be short-lived and may have already bottomed out.


Oil prices took their cues from a report in the United States at the end of last week that showed consumer sentiment at its weakest in a year as a result of the uncertainty surrounding the country's debt crisis.


Concerns about demand overshadowed supply disruption fears reinforced by the Islamist militant attack and hostage-taking at a gas plant in Algeria, a member of the Organization of Petroleum Exporting Countries.


Brent futures were down by 40 cents to $111.47 per barrel by mid-afternoon. U.S. crude shed 43 cents to $95.13 per barrel after touching a four-month high last week.


"The over-riding fundamental feeling in the market is that crude oil is over-supplied in 2013," said Tony Nunan, an oil risk manager at Mitsubishi.


Last week's data showing a pick-up in the Chinese economy helped keep growth-sensitive copper prices steady at roughly $8,056 an ounce. Gold, meanwhile, reversed Friday's losses to stand at $1,688 an ounce.


(Additional reporting by Sudip Kar-Gupta, Marious Zaharia and Anooja Debnath; Editing by Peter Graff)



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With Obama Inauguration, NASA’s Deep-Space Mission Continues






With President Barack Obama taking the oath of office to begin his second term today, it kicks off four more years for NASA to pursue its audacious goal of sending astronauts farther into deep space than ever before.


Two major pieces of NASA’s deep-space exploration program — full-size replicas of the agency’s new Orion space capsule and Mars rover Curiosity — will make an appearance during Obama’s inaugural parade today (Jan. 21).






NASA’s “Mohawk Guy” Bobak Ferdowsi, a Curiosity flight director renowned for his hairstyle, will also march in the parade, and has promised a new hairdo to mark the event. Several NASA astronauts, including Michael Massimino —the agency’s most followed space man on Twitter (@Astro_Mike) — will appear in the parade, too.


In his first term as president, Obama canceled NASA’s moon-oriented Constellation program and directed the space agency to pursue a new vision of deep-space exploration, a program that aims to send the first manned mission to an asteroid by 2025. By the mid-2030s, the target is Mars.


Obama unveiled the space exploration vision in April 2010 at NASA’s Kennedy Space Center in Cape Canaveral, Fla. A year later, NASA’s space shuttle program — already winding down by the time Obama first took office — flew its final missions. In 2012, the iconic winged space planes were delivered to museums across the country. [NASA Photos: Obama's 2nd Inauguration]


At the same time, NASA was busy developing a new spacecraft for deep-space exploration, the Orion space capsule, as well as a giant rocket called the Space Launch System to boost the capsule off the planet. The agency is developing another craft, the Space Exploration Vehicle, designed to make the trip to a near-Earth asteroid or other deep-space destination.


Here’s a look at NASA’s human spaceflight projects that will be under way during Obama’s second term:


Deep space exploration


Construction has already begun on NASA’s first Orion space capsule to fly and will continue throughout this year. That prototype is expected to launch unmanned atop an existing Delta 4 Heavy rocket in 2014 for an initial test.  A more ambitious unmanned test flight around the moon is planned for 2017, when an Orion capsule will make an unmanned trip around the moon after launching on the first Space Launch System booster.


The first operational flights of the complete Orion and Space Launch System designs are expected by 2021. By that time, Obama’s second term will have been over for several years. [Curiosity Rover Rolls In Inauguration Parade (Video)]


Last week, NASA finalized a deal with the European Space Agency on the Orion capsule’s service module, which will provide power, propulsion and other vital systems for the space capsule beginning with the 2017 test flight. The move, NASA officials said, sets the stage for a true international approach to space exploration beyond low-Earth orbit.


“Space has long been a frontier for international cooperation as we explore,” Dan Dumbacher, NASA’s deputy associate administrator for Exploration System Development, said in a Jan. 16 statement. “This latest chapter builds on NASA’s excellent relationship with ESA as a partner in the International Space Station, and helps us move forward in our plans to send humans farther into space than we’ve ever been before.”


In addition to exploring a near-Earth asteroid and Mars, NASA is also eyeing a potential plan to build a deep-space station on the far side of the moon that could serve as a stepping stone to the asteroid or Mars flights.


Rise of private space taxis


While NASA works on new spacecraft for deep-space missions, the agency is also supporting the development of new private manned spaceflight vehicles that could ferry American astronauts into and from low-Earth orbit.


NASA hopes the commercial spacecraft will be ready by 2017. Until then, the space agency is dependent on Russia’s Soyuz spacecraft for flying Americans into orbit.


NASA already has billion-dollar deals with two private companies, SpaceX of Hawthorne, Calif., and Orbital Sciences Corp., in Virginia, to provide commercial cargo deliveries to the International Space Station aboard robotic spacecraft.


Last year, SpaceX flew two missions to the space station using its Falcon 9 rockets and Dragon spacecraft, and plans to launch its third flight sometime in March under a $ 1.6 billion contract for 12 missions. Orbital Sciences is planning to launch the first test flights of its Antares rocket and Cygnus space capsule later this year as part of a $ 1.9 billion contract for eight missions.


In December, NASA awarded a total of $ 30 million in funding to three different private spaceflight companies to support their work on new commercial spaceships. SpaceX, aerospace veteran Boeing and Sierra Nevada Corp. received different amounts of the funding package to spur their individual projects.


SpaceX is working to scale up its Dragon capsule to carry seven astronauts on roundtrip orbital flights. Boeing, too, is working on a space capsule (called Commercial Space Transportation 100), while Sierra Nevada is developing a small space plane dubbed Dream Chaser for its entry. A fourth contender, the company Blue Origin founded by billionaire Amazon CEO Jeff Bezos, is also competing for NASA funding.


NASA provided an update on the four companies’ projects last week, with each firm promising big steps forward for their space vehicles in 2013.


“I think the partnership between NASA and each of these companies clearly shows that we have a very vibrant space industry in the United States,” said Ed Mango, NASA’s manager for the commercial crew program. “The four companies here today are capable and are the leading edge of what it takes to get folks back into low-Earth orbit over time.”


 You can follow SPACE.com Managing Editor Tariq Malik on Twitter @tariqjmalikFollow SPACE.com for the latest in space science and exploration news on Twitter @Spacedotcom and on Facebook.


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.


The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.


Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.


Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.


"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.


Major technology companies also report next week, but the bar for the sector has been lowered even further.


Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.


Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.


Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.


CASH POURING IN, HOUSING DATA COULD HELP


Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.


The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.


"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.


"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."


Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.


Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.


The new home sales report on Friday is expected to show a 2.1 percent increase.


The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.


Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.


The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.


"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.


"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."


(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak and Caroline Valetkevitch; Editing by Kenneth Barry)



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Astronomy Teacher Finds Hubble Telescope’s Hidden Treasure






A Connecticut astronomy teacher has uncovered a dazzling view of a satellite galaxy to the Milky Way while exploring the “hidden treasures” of the Hubble Space Telescope.


The new Hubble photo, released Thursday (Jan. 17), shows an intriguing star nursery dotted with dark dust lanes in the Large Magellanic Cloud about 200,000 light-years from Earth. The Hubble observation used to create the image was discovered in the telescope’s archives by Josh Lake, a high school astronomy teacher at Pomfret School in Pomfret, Conn., as part of the “Hubble Hidden Treasures” contest that challenged space fans to find unseen images from the observatory.






Hubble officials also released an eye-popping video tour of the Large Magellanic Cloud, which zooms in on the region highlighted in Lake’s photo.


Lake won first prize in the Hubble photo contest with an image of the LHA 120-N11 (N11) region of the Large Magellanic Cloud. Hubble officials combined Lake’s image with more observations of the N11 region in blue, green and near-infrared light wavelengths to create the new view.


“In the center of this image, a dark finger of dust blots out much of the light,” Hubble officials said in an image description. “While nebulae are mostly made of hydrogen, the simplest and most plentiful element in the universe, dust clouds are home to heavier and more complex elements, which go on to form rocky planets like the Earth.” [Hubble Telescope’s Hidden Treasures: Winning Photos


The interstellar dust in N11 is extremely fine, much more so than household dust on Earth. It is more similar to smoke, researchers explained.


The Large Magellanic Cloud, or LMC, is one of two small satellite galaxies of the Milky Way (the other is the smaller, aptly named Small Magellanic Cloud). Because of its relatively close proximity, the Large Magellanic Cloud has long been used as a sort of cosmic laboratory to study how stars form in other galaxies.


“It lies in a fortuitous location in the sky, far enough from the plane of the Milky Way that it is neither outshone by too many nearby stars, nor obscured by the dust in the Milky Way’s center,” Hubble officials said in a statement. “It is also close enough to study in detail … and lies almost face-on, giving us a bird’s eye view.”


In addition to the N11 region, the Large Magellanic Cloud is also home to the spectacular Tarantula nebula, the brightest nearby star nursery, Hubble officials said.


The Hubble Space Telescope has been snapping spectacular photos of the universe since 1994 and is a joint project by NASA and the European Space Agency. This month, NASA officials said the long-lived space observatory could potentially last through 2018.


You can follow SPACE.com Managing Editor Tariq Malik on Twitter @tariqjmalikFollow SPACE.com for the latest in space science and exploration news on Twitter @Spacedotcom and on Facebook.


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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Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.


The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.


Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.


Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.


"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.


Major technology companies also report next week, but the bar for the sector has been lowered even further.


Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.


Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.


Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.


CASH POURING IN, HOUSING DATA COULD HELP


Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.


The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.


"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.


"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."


Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.


Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.


The new home sales report on Friday is expected to show a 2.1 percent increase.


The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.


Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.


The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.


"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.


"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."


(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak and Caroline Valetkevitch; Editing by Kenneth Barry)



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The 10 Weirdest Inaugurations in US History






President Barack Obama will put his hand on a Bible for the 57th inauguration ceremony Monday (Jan. 21) and kick off his next four years in office. And while everything may come off without a hitch, inaugurations haven’t always gone smoothly. From Richard Nixon‘s parade of dead birds to Calvin Coolidge‘s impromptu inauguration, here are some of the most bizarre swearing-in days in U.S. history.


Drunken oratory






In 1865, Andrew Johnson gave a train-wreck of a speech on the big day. The vice president usually gives a short and smooth speech prior to the president’s address. But the 16th vice president, who later became the 17th president after Abraham Lincoln was assassinated that year, was ill with typhoid fever and took the medicine of the day, whiskey, the night before. The hangover must have gone to his head: During the speech, he bragged about his humble origins and his triumph over Confederate rebels. Lincoln reportedly looked on in horror, while the former vice president Hannibal Hamlin tugged at his coattails in a failed bid to get him to stop.


Dead birds


Ulysses S. Grant thought that canaries would add a festive touch to his inaugural ball in 1873, the beginning of his second term. Unfortunately, the 18th president failed to anticipate the cold temperatures — the morning low was 4 degrees Fahrenheit (about 15 degrees Celsius), the coldest March day on record. With wind chill, the day felt like a blustery minus 15 F to minus 30 F (minus 26 C to minus 34 C). All told, about 100 birds froze to death during Grant’s inauguration. [The World's Weirdest Weather]


More dead birds


Birds don’t seem to do well on Inauguration Day. During Richard Nixon‘s Inauguration Day parade in 1973, he wanted to make sure pigeons didn’t ruin his big day. The 37th president had a chemical bird repellant sprayed all along the inaugural parade route. The streets were strewn with dozens of dead pigeons.


Coat-check blunders


Grant’s inaugurations suffered from several blunders. Not only did he inadvertently lead to mass bird death at the second inauguration, his first inauguration in 1869 saw outright brawls. The people staffing the coat-check area couldn’t read the claim tickets, so as people waited ever longer to pick up their outerwear, fights broke out and some guests abandoned their jackets and hats. “Illiterate workers mixed up everyone’s coat claims, leading to fights among the men and tears among the women,” writes Jim Bendat in “Democracy’s Big Day: The Inauguration of our President 1789-2009″ (iUniverse Star, 2008).


Quiet ceremony


Calvin Coolidge, known as “Silent Cal,” was notorious for talking little and doing things with no fanfare. That includes the start of his presidency. He was staying with his father in rural Vermont when news came that President Warren G. Harding had died. Because the 30th president’s father happened to be a justice of the peace, his father performed the swearing in right there, without an audience.


Killer speech


William Henry Harrison’s inauguration speech was deadly dull. The ninth president of the United States stood so long in the cold, rainy weather to give his inauguration speech that he caught a chill, got pneumonia and died just a month later. But not everyone thinks the speech killed him; he may have gotten his cold three weeks later, meaning his rainy day performance wasn’t to blame for his demise. [The Strangest Elections in US History]


House party from hell


After Andrew Jackson’s inauguration in 1829, the seventh president threw an epic party at the White House straight out of an ’80s movie. Jackson was notorious for his frontier-style, “man of the people” mystique and he attracted a similarly rough crowd. The louts crashed the party, sloshed through the house in muddy shoes, broke china and ripped the curtains down. To get them to leave, the staff used a time-tested trick: Leaving a tub of whiskey on the front lawn.


Debating a little girl


In 1929, when President Herbert Hoover was sworn in, the chief justice who administered the oath, William Howard Taft, garbled it, substituting the word “maintain” for “protect.” An eighth-grade girl named Helen Terwilliger caught the flub, and sent Taft a note. Instead of admitting the error, Taft wrote a letter insisting he got the words right, and movie buffs eventually played their newsreels to determine who was right. The eighth-grader held the day and Taft eventually conceded he was wrong.


Running for office


President James Buchanan had an extreme case of diarrhea on his Inauguration Day in 1857. Prior to the inauguration, the 15th president of the United States had contracted a case of “National Hotel Disease,” by staying at a shady establishment. The stubborn case of dysentery lingered past his inauguration, and Buchanan needed a doctor nearby during the ceremony.


Some air, please


While partying has always been a major part of the inaugural tradition, guests were considerably rowdier in years past. During James Madison’s inaugural ball in 1809, the weather got so hot that patrons reportedly broke out the windows at Long’s Hotel so they could breathe. (Tickets for the ball apparently cost $ 4 each.)


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


Copyright 2013 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Science News Headlines – Yahoo! News





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