Assad "peace plan" greeted with scorn by foes


BEIRUT (Reuters) - Syrian President Bashar al-Assad rejected peace talks with his enemies on Sunday in a defiant speech that his opponents described as a renewed declaration of war.


Although the speech was billed as the unveiling of a new peace plan, Assad offered no concessions and even appeared to harden many of his positions. He rallied Syrians for "a war to defend the nation" and disparaged the prospect of negotiations.


"We do not reject political dialogue ... but with whom should we hold a dialogue? With extremists who don't believe in any language but killing and terrorism?" Assad asked supporters who packed Damascus Opera House for his first speech since June.


"Should we speak to gangs recruited abroad that follow the orders of foreigners? Should we have official dialogue with a puppet made by the West, which has scripted its lines?"


It was his first public speech to an audience in six months. Since the last, rebels have reached the capital's outskirts.


George Sabra, vice president of the opposition National Coalition, told Reuters the peace plan Assad put at the heart of his speech did "not even deserve to be called an initiative":


"We should see it rather as a declaration that he will continue his war against the Syrian people," he said.


"The appropriate response is to continue to resist this unacceptable regime and for the Free Syrian Army to continue its work in liberating Syria until every inch of land is free."


The speech was seen by many as a response to U.N. mediator Lakhdar Brahimi, who has been meeting U.S. and Russian officials to try to narrow differences between Washington and Moscow over a peace plan. Brahimi also met Assad in Syria late last month.


"Lakhdar Brahimi must feel foolish after that Assad speech, where his diplomacy is dismissed as intolerable intervention," said Rana Kabbani, a Syrian analyst who supports the opposition.


The United States, European Union, Turkey and most Arab states have called on Assad to quit. Russia, which sells arms to and leases a naval base from Syria, says it backs a transition of power but that Assad's departure should not be a precondition for any talks.


REPETITIONS


Assad's foreign foes were scornful and dismissive of the speech: "His remarks are just repetitions of what he's said all along," said Turkish Foreign Minister Ahmet Davutoglu.


"It seems he's locked himself up in a room and only reads the intelligence reports presented to him."


British Foreign Secretary William Hague said "empty promises of reform fool no one". In a Twitter message, he added: "Death, violence and oppression engulfing Syria are of his own making."


EU foreign affairs chief Catherine Ashton said Brussels would "look carefully if there is anything new in the speech, but we maintain our position that Assad has to step aside and allow for a political transition".


The 47-year-old Assad, tall and mustachioed, in a business suit and tie, spoke confidently for about an hour before a crowd of cheering loyalists, who occasionally interrupted him to shout and applaud, at one point raising their fists and chanting: "With blood and soul we sacrifice for you, oh Bashar!"


At the end of the speech, supporters rushed to the stage, mobbing him and shouting: "God, Syria and Bashar is enough!" as a smiling president waved and was escorted from the hall past a backdrop showing a Syrian flag made of pictures of people whom state television described as "martyrs" of the conflict so far.


"We are now in a state of war in every sense of the word," Assad said in the speech, broadcast on Syrian state television. "This war targets Syria using a handful of Syrians and many foreigners. Thus, this is a war to defend the nation."


Independent media are largely barred from Damascus.


Giving the speech in the opera house, in a part of central Damascus that has been hit by rebel attacks, could be intended as a show of strength by a leader whose public appearances have grown rarer as the rebellion has gathered force.


Critics saw irony in the venue: "Assad speech appropriately made in Opera House!" tweeted Rami Khouri, a commentator for Lebanon's Daily Star newspaper. "It was operatic in its other-worldly fantasy, unrelated to realities outside the building."


DEATHS


The United Nations says 60,000 people have been killed in the civil war, the longest and bloodiest of the conflicts to emerge in two years of revolts in Arab states.


Rebels now control much of the north and east of the country, a crescent of suburbs on the outskirts of the capital and the main border crossings with Turkey in the north.


But Assad's forces are still firmly in control of most of the densely populated southwest, the main north-south highway and the Mediterranean coast. The army also holds military bases throughout the country from which its helicopters and jets can strike rebel-held areas with impunity, making it impossible for the insurgents to consolidate their grip on territory they hold.


Assad, an eye doctor, has ruled since 2000, succeeding his late father Hafez, who had seized power in a 1970 coup.


The rebels are drawn mainly from Syria's Sunni Muslim majority, while Assad, a member of the Alawite sect related to Shi'ite Islam, is supported by some members of religious minorities who fear retribution if he falls.


The conflict has heightened confrontation in the Middle East between Shi'ite Iran and Sunni Arab rulers, particularly those in the Gulf who are allied with the West against Tehran.


The plan unveiled in Sunday's speech could hardly have been better designed to ensure its rejection by the opposition. Among its proposals: rebels would first be expected to halt operations before the army would cease fire, a certain non-starter.


Assad also repeatedly emphasized rebel links to al Qaeda and other Sunni Islamist radicals. Washington has also labeled one of the main rebel groups a terrorist organization and says it is linked to the network founded by Osama bin Laden.


Diplomacy has been largely irrelevant so far in the conflict, with Moscow vetoing U.N. resolutions against Assad.


U.N. mediator Brahimi has been trying to bridge the gap, meeting senior U.S. and Russian officials to discuss his own peace proposal, which does not explicitly mention Assad's fate.


National Coalition spokesman Walid Bunni said Assad's speech appeared timed to prevent a breakthrough in those talks, by taking a position that could not be reconciled with diplomacy.


"The talk by Brahimi and others that there could be a type of political solution being worked out has prompted him to come out and tell the others 'I won't accept a solution'," Bunni said, adding that Assad feared any deal would mean his downfall.


(Additional reporting by Suleiman al-Khalidi in Amman, Gulsen Solaker in Ankara and Tim Castle in London; Writing by Peter Graff; Editing by Alastair Macdonald)



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"Cliff" concerns give way to earnings focus

NEW YORK (Reuters) - Investors' "fiscal cliff" worries are likely to give way to more fundamental concerns, like earnings, as fourth-quarter reports get under way next week.


Financial results, which begin after the market closes on Tuesday with aluminum company Alcoa , are expected to be only slightly better than the third-quarter's lackluster results. As a warning sign, analyst current estimates are down sharply from what they were in October.


That could set stocks up for more volatility following a week of sharp gains that put the Standard & Poor's 500 index <.spx> on Friday at the highest close since December 31, 2007. The index also registered its biggest weekly percentage gain in more than a year.


Based on a Reuters analysis, Europe ranks among the chief concerns cited by companies that warned on fourth-quarter results. Uncertainty about the region and its weak economic outlook were cited by more than half of the 25 largest S&P 500 companies that issued warnings.


In the most recent earnings conference calls, macroeconomic worries were cited by 10 companies while the U.S. "fiscal cliff" was cited by at least nine as reasons for their earnings warnings.


"The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome," said Kurt Winters, senior portfolio manager for Whitebox Mutual Funds in Minneapolis.


Negative-to-positive guidance by S&P 500 companies for the fourth quarter was 3.6 to 1, the second worst since the third quarter of 2001, according to Thomson Reuters data.


U.S. lawmakers narrowly averted the "fiscal cliff" by coming to a last-minute agreement on a bill to avoid steep tax hikes this weeks -- driving the rally in stocks -- but the battle over further spending cuts is expected to resume in two months.


Investors also have seen a revival of worries about Europe's sovereign debt problems, with Moody's in November downgrading France's credit rating and debt crises looming for Spain and other countries.


"You have a recession in Europe as a base case. Europe is still the biggest trading partner with a lot of U.S. companies, and it's still a big chunk of global capital spending," said Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York.


Among companies citing worries about Europe was eBay , whose chief financial officer, Bob Swan, spoke of "macro pressures from Europe" in the company's October earnings conference call.


REVENUE WORRIES


One of the biggest worries voiced about earnings has been whether companies will be able to continue to boost profit growth despite relatively weak revenue growth.


S&P 500 revenue fell 0.8 percent in the third quarter for the first decline since the third quarter of 2009, Thomson Reuters data showed. Earnings growth for the quarter was a paltry 0.1 percent after briefly dipping into negative territory.


On top of that, just 40 percent of S&P 500 companies beat revenue expectations in the third quarter, while 64.2 percent beat earnings estimates, the Thomson Reuters data showed.


For the fourth quarter, estimates are slightly better but are well off estimates for the quarter from just a few months earlier. S&P 500 earnings are expected to have risen 2.8 percent while revenue is expected to have gone up 1.9 percent.


Back in October, earnings growth for the fourth quarter was forecast up 9.9 percent.


In spite of the cautious outlooks, some analysts still see a good chance for earnings beats this reporting period.


"The thinking is you need top line growth for earnings to continue to expand, and we've seen the market defy that," said Mike Jackson, founder of Denver-based investment firm T3 Equity Labs.


Based on his analysis, energy, industrials and consumer discretionary are the S&P sectors most likely to beat earnings expectations in the upcoming season, while consumer staples, materials and utilities are the least likely to beat, Jackson said.


Sounding a positive note on Friday, drugmaker Eli Lilly and Co said it expects profit in 2013 to increase by more than Wall Street had been forecasting, primarily due to cost controls and improved productivity.


(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)



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PGA Tour's season opener delayed again


KAPALUA, Hawaii (AP) — For those who think the PGA Tour season never ends, here's a new twist: This one can't get started.


For the second straight day, the Tournament of Champions was postponed Saturday because of gusts topping 40 mph that made it impossible to play. Some holes on the back nine are so exposed that when officials dropped a golf ball on the green, it actually rolled up uphill.


The tournament was supposed to begin Friday. The plan is to play 36 holes Sunday and get in 54 holes by Monday afternoon, making it likely that the Tournament of Champions will be decided over 54 holes for the first time since 1997 when it was at La Costa.


Unlike Friday, when 24 players at least teed off, no one hit a shot on the Plantation Course on Saturday.


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Famed Roman Shipwreck Could Be Two






SEATTLE — A dive to the undersea cliff where a famous Roman shipwreck rests has turned up either evidence that the wreck is enormous — or a suggestion that, not one, but two sunken ships are resting off the Greek island of Antikythera.


“Either way, it’s an exciting result,” said study researcher Brendan Foley, an archaeologist at Woods Hold Oceanographic Institution who presented the findings here today (Jan. 4) at the annual meeting of the Archaeological Institute of America.






The Antikythera wreck is famed for the massive number of artifacts pulled from the site over the past century. First discovered in the early 1900s by local sponge divers, the wreck is most famous for the Antikythera mechanism, a complex bronze gear device used to calculate astronomical positions (and perhaps the timing of the Olympic games). Numerous bronze and marble statues, jars and figurines have also been pulled from the wreck. The ship went down in the first century B.C.


Remote wreck


The wreck is perched on a steep undersea cliff in water too deep for standard scuba gear. The undersea landscape also makes deploying remotely operated submersibles impossible, Foley said. In 1976, Jacques Costeau led a diving expedition to the site. Since then, it has been unexplored, thanks in part to its remote location in the strait between Crete and Peloponnese.


“This place is absolutely unspoiled,” Foley said.


Led by Aggeliki Simossi, the director of the Greek Ephorate of Underwater Antiquities, Foley and colleagues from Greece and Woods Hole watched footage and pored over logs from the 1976 dive. With so many artifacts already taken from the site, they knew there would be little evidence of the shipwreck exposed on the ocean floor. They’d have to match the underwater geology to find the wreck.


In October, diving with technical scuba gear and diver propulsion vehicles that look like underwater fans, the team found the sweet spot, marked by a scattering of amphora, or large curved jars. [See Photos of the Antikythera Shipwreck]


Intact artifacts from the wreck were spread over a huge area, about 197 feet (60 meters) long at depths ranging from 114 feet to 197 feet (35 to 60 m), Foley said. That’s large for an ancient shipwreck, Foley said, suggesting either a huge ship or perhaps more than one wreck. The findings are preliminary, Foley said, but the team may have ultimately been excavating 984 feet (300 m) away from the site explored by Cousteau. If that’s the case, he said, they may have found a separate wreck — likely part of the same fleet as the original wreck that went down in the same storm.


More secrets


One reason for the researchers’ uncertainty is the fact that they used Costeau’s Antikythera expedition videos to gauge where to anchor their boat. Since some of the shots in the video were almost certainly staged, the researchers can’t be sure they weren’t diving at a site hundreds of yards away from the site explored in 1976.


Either way, the wreck site has many more artifacts to offer, the researchers found. They pulled one jar to the surface, which will undergo DNA testing to determine its contents. They also recovered two components of a lead anchor, which itself was resting on top of other artifacts, suggesting it was on deck when the ship went down.


“What else could be down there?” Foley said. “Are there more pieces of the known Antikythera mechanism? Is there another mechanism down there?”


The researchers plan to return to the area next year and will use metal detectors to check the site almost 1,000 feet away where Costeau’s team may have really been, he said. There are no artifacts visible on the ocean floor other than the spot that Foley and his colleagues explored, but metal detectors should pick up on any remnants under the sand at the other site if there are in fact two wrecks. [The 7 Most Mysterious Archaeological Finds]


What’s more, the technical scuba gear may also allow archaeologists to dive deeper and more extensively in the future, Foley added. The dream, he told LiveScience, is to find an “undisturbed Antikythera,” or a significant wreck that hasn’t been disrupted for decades.


“Because the site has been so intruded upon for more than a century it gets really hard to disambiguate what’s myth and what’s fact,” Foley said.


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.
Science News Headlines – Yahoo! News





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Storm over Depardieu's 'pathetic' move






STORY HIGHLIGHTS


  • Russian President Vladimir Putin has bestowed Russian citizenship on actor Gérard Depardieu

  • For Depardieu, a public war of words erupted, with many in France disgusted by his move

  • Depardieu more than anyone, represents the Gallic spirit, says Agnes Poirier

  • Majority of French people disapprove of his action but can't help loving him, she adds




Agnes Poirier is a French journalist and political analyst who contributes regularly to newspapers, magazines and TV in the UK, U.S., France, Italy. Follow her on Twitter.


Paris (CNN) -- Since the revelation on the front page of daily newspaper Libération, on December 11, with a particularly vicious editorial talking about France's national treasure as a "former genius actor," Gérard Depardieu's departure to Belgium, where he bought a property just a mile from the French border, has deeply divided and saddened France. Even more so since, as we have learnt this week, Russian President Vladimir Putin has bestowed the actor Russian citizenship.


Back in mid-December, the French media operated along political lines: the left-wing press such as Libération couldn't find strong enough words to describe Depardieu's "desertion" while right-wing publications such as Le Figaro, slightly uneasy at the news, preferred to focus on President François Hollande's punishing taxes which allegedly drove throngs of millionaires to seek tax asylum in more fiscally lenient countries such as Belgium or Britain. Le Figaro stopped short of passing moral judgement though. Others like satirical weekly Charlie hebdo, preferred irony. Its cover featured a cartoon of the rather rotund-looking Depardieu in front of a Belgian flag with the headline: "Can Belgium take the world's entire load of cholesterol?" Ouch.


Quickly though, it became quite clear that Depardieu was not treated in the same way as other famous French tax exiles. French actor Alain Delon is a Swiss resident as is crooner-rocker Johnny Halliday, and many other French stars and sportsmen ensure they reside for under six months in France in order to escape being taxed here on their income and capital. Their move has hardly ever been commented on. And they certainly never had to suffer the same infamy.



Agnes Poirier

Agnes Poirier



For Depardieu, a public war of words erupted. It started with the French Prime Minister Jean-Marc Ayrault, and many members of his government, showing their disdain, and talking of Depardieu's "pathetic move." In response the outraged actor penned an open letter to the French PM in which he threatened to give back his French passport.


The backlash was not over. Fellow thespian Phillipe Torreton fired the first salvo against Depardieu in an open letter published in Libération, insulting both Depardieu's protruding physique and lack of patriotism: "So you're leaving the ship France in the middle of a storm? What did you expect, Gérard? You thought we would approve? You expected a medal, an academy award from the economy ministry? (...)We'll get by without you." French actress Catherine Deneuve felt she had to step in to defend Depardieu. In another open letter published by Libération, she evoked the darkest hours of the French revolution. Before flying to Rome to celebrate the New Year, Depardieu gave an interview to Le Monde in which he seemed to be joking about having asked Putin for Russian citizenship. Except, it wasn't a joke.


In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit. He has been Cyrano, he has been Danton; he, better than most, on screen and off, stands for what it means to be French: passionate, sensitive, theatrical, and grandiose. Ambiguous too, and weak in front of temptations and pleasures.



In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit
Hugh Miles



For more than two weeks now, #Depardieu has been trending on French Twitter. Surveys have showed France's dilemma: half the French people understand him but there are as many who think that paying one's taxes is a national duty. In other words, a majority of French people disapprove of his action but can't help loving the man.


Putin's move in granting the actor Russian citizenship has exacerbated things. And first of all, it is a blow to Hollande who, it was revealed, had a phone conversation with Depardieu on New Year's Day. The Elysées Palace refused to communicate on the men's exchange. A friend of the actor declared that Depardieu complained about being so reviled by the press and that he was leaving, no matter what.


If, in their hearts, the French don't quite believe Depardieu might one day settle in Moscow and abandon them, they feel deeply saddened by the whole saga. However, with France's former sex symbol Brigitte Bardot declaring that she too might ask Putin for Russian citizenship to protest against the fate of zoo elephants in Lyon, it looks as if the French may prefer to laugh the whole thing off. Proof of this: the last trend on French Twitter is #IWantRussianCitizenship.


The opinions expressed in this commentary are solely those of Agnes Poirier.






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Jail escapee appears in court, ordered held without bond

Chicago Tribune reporter Jason Meisner on the recent arrest of Kenneth Conley, a convicted bank robber who escaped from federal jail in December. (Posted on: Jan. 4, 2013.)









Kenneth Conley's formal return to federal custody this morning at the Dirksen U.S. Courthouse was a far cry from the brazen way he left.


The second half of a daring escape duo who used bedsheets to scale down the façade of a downtown jail last month was pushed into a federal courtroom in a wheelchair, his legs extended and his feet swollen and shoeless. Shoulder bones pushed through his thin white T-shirt and one pinky was secured in a splint.


A short time later, U.S. District Judge Sheila Finnegan ordered Conley be held in custody without bail and set his preliminary hearing for Jan. 17.
Conley spoke only briefly to tell Finnegan he understood the charges against him.








"Yes, your honor," said Conley, who was wan and appeared thinner than in his booking photo.


Conley, a convicted bank robber, was on the lam 18 days before being arrested Friday afternoon in Palos Hills after police there received a call of a suspicious person. Police said Conley had attempted a disguise, wearing a an overcoat, beret and using a cane he didn't need.


Conley fought briefly with police, slugging one officer before he was tackled, authorities said. He was treated at a hospital before being transferred back to the Metropolitan Correctional Center, the jail he busted out of Dec. 18 with his cellmate and fellow convicted bank robber, Joseph "Jose" Banks. Banks was caught two days after the escape.


Conley's attorney, Gary Ravitz, asked Finnegan for permission to use his cell phone camera to document Conley's left foot, which he said was swollen.


Ravitz, who represents Conley on the underlying bank robbery charge, said he did not know the extent of his client's injuries and that he otherwise appeared calm.


"He seemed to be in relatively good spirits, given the situation," Ravitz said.


Conley, 38, allegedly escaped from the jail, located at 71 W. Van Buren Street, while awaiting sentencing after pleading guilty on Oct. 29, 2012, to a 2011 bank robbery of $4,000 in Homewood.


Deputy U.S. Marshals and FBI agents returned to Palos Hills Friday morning to canvass for Conley because of unconfirmed sightings there and his long-standing connections to the area. A 911 call from maintenance workers at a building where Conley is believed to have been sleeping in the basement came in around 3:30 p.m.


The maximum penalty for Conley's escape is five years in prison and a $250,000 fine. The maximum penalty for bank robbery is 20 years in prison and a $250,000 fine.


According to court records, Conley has a long criminal history. He has been convicted in Cook County of offenses ranging from retail theft to weapons violations and was sentenced to eight years in prison for an armed robbery in 1996. He also was sentenced to six years in prison in San Diego County for petty theft with a prior conviction, according to California records.


asweeney@tribune.com, jmeisner@tribune.com, sschmadeke@tribune.com


Twitter: @ChicagoBreaking





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Venezuela lawmakers elect Chavez ally as Assembly chief


CARACAS (Reuters) - Venezuelan lawmakers re-elected a staunch ally of Hugo Chavez to head the National Assembly on Saturday, putting him in line to be caretaker president if the socialist leader does not recover from cancer surgery.


By choosing the incumbent, Diosdado Cabello, the "Chavista"-dominated legislature cemented the combative ex-soldier's position as the third most powerful figure in the government, after Chavez and Vice President Nicolas Maduro.


"As a patriot ... I swear to be supremely loyal in everything I do, to defend the fatherland, its institutions, and this beautiful revolution led by our Comandante Hugo Chavez," Cabello said as he took the oath, his hand on the constitution.


He had earlier warned opposition politicians against attempting to use the National Assembly to "conspire" against the people, saying they would be "destroyed" if they tried.


Thousands of the president's red-clad supporters gathered outside parliament hours before the vote, many chanting: "We are all Chavez! Our comandante will be well! He will return!"


If Chavez had to step down, or died, Cabello would take over the running of the country as Assembly president and a new election would be organized within 30 days. Chavez's heir apparent, Maduro, would be the ruling Socialist Party candidate.


Chavez, who was diagnosed with an undisclosed form of cancer in his pelvic area in mid-2011, has not been seen in public nor heard from in more than three weeks.


Officials say the 58-year-old is in delicate condition and has suffered multiple complications since the December 11 surgery, including unexpected bleeding and severe respiratory problems.


Late on Friday, Maduro gave the clearest indication yet that the government was preparing to delay Chavez's inauguration for a new six-year term, which is scheduled for Thursday.


'CHAVEZ IS PRESIDENT'


Maduro said the ceremony was a "formality" and that Chavez could be sworn in by the Supreme Court at a later date.


The opposition says Chavez's absence would be just the latest sign that he is no longer fit to govern, and that new elections should be held in the South American OPEC nation.


Brandishing a copy of the constitution after his win in the Assembly, Cabello slammed opposition leaders for writing a letter to foreign embassies in which they accused the government of employing a "twisted reading" of the charter.


"Get this into your heads: Hugo Chavez was elected president and he will continue to be president beyond January 10. No one should have any doubt ... this is the constitutional route," he said as fellow Socialist Party lawmakers cheered.


The opposition sat stony-faced. One of their legislators had earlier told the session that it was not just the head of state who was ill, "the republic is sick."


Last year, Chavez staged what appeared to be a remarkable comeback from the disease to win re-election in October, despite being weakened by radiation therapy. He returned to Cuba for more treatment within weeks of his victory.


Should the president have to step down after 14 years in office, a new vote would probably pit Maduro, a 50-year-old former bus driver and union leader, against opposition leader Henrique Capriles, the 40-year-old governor of Miranda state.


Capriles lost to Chavez in October's presidential election.


"I don't think Maduro would last many rounds in a presidential race. He's not fit for the responsibility they have given him," Capriles said after the vice president's appearance on state television.


Chavez's condition is being watched closely by leftist allies around Latin American who have benefited from his oil-funded generosity, as well as investors attracted by Venezuela's lucrative and widely traded debt.


The country boasts the world's biggest crude reserves. Despite the huge political upheaval Chavez's exit would cause, the oil industry is not likely to be affected much in the short term, with an extension of "Chavismo" keeping projects on track, while a change in parties could usher in more foreign capital.


(Additional reporting by Deisy Buitrago; Editing by Vicki Allen)



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Data helps pace Wall Street higher, but Apple drags

NEW YORK (Reuters) - U.S. stocks advanced on Friday, putting the S&P 500 on track for its biggest weekly gain in over a year after a jobs report showed employers kept the pace of hiring steady in December.


The Labor Department said payrolls outside the farming sector grew by 155,000 jobs last month, slightly below November's level. Gains in employment were distributed broadly throughout the economy, from manufacturing and construction to healthcare.


Also helping to keep equities afloat was data from the Institute for Supply Management showing U.S. service sector activity expanding the most in 10 months.


"It feels like the economy, we're not burning the barn down, but we are doing fine - we seem to be growing and the fiscal cliff does not seem to have weighed too much on December employment," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.


The S&P 500 index's weekly gain would be its largest since December 2011. The majority of the gains were achieved earlier in the holiday-shortened week, including the largest daily gain for the benchmark S&P index in more than a year on Wednesday, after a deal was struck in Washington to avert the "fiscal cliff."


"So far there is nothing that has come out that has been negative following the push, they tried to read into the Fed minutes yesterday and take it down but so far they haven't had much success," Mendelsohn said.


But a drag on Apple Inc shares, down 2.6 percent to $528.36, kept the Nasdaq near the uchanged mark, as the iPhone maker continued its downward path of recent months.


Adding to concerns about Apple's ability to produce more innovative products, rival Samsung Electronics Co Ltd is expected to widen its lead over Apple in global smartphone sales this year with growth of 35 percent. Market researcher Strategy Analytics said Samsung had a broad product lineup.


The Dow Jones industrial average <.dji> gained 28.46 points, or 0.21 percent, to 13,419.82. The Standard & Poor's 500 Index <.spx> rose 5.47 points, or 0.37 percent, to 1,464.84. The Nasdaq Composite Index <.ixic> added 2.50 points, or 0.08 percent, to 3,103.07.


The CBOE Volatility index <.vix>, a measure of investor anxiety, was on pace for its fourth straight decline, a drop of nearly 40 percent which has pushed the index to its lowest level since September.


Eli Lilly and Co was among the biggest boost's to the S&P, up 3.5 percent to $51.47 after the pharmaceuticals maker said it expects its 2013 earnings to increase to $3.75 to $3.90 per share, excluding items, from $3.30 to $3.40 per share in 2012.


Fellow drugmaker Johnson & Johnson rose 1.2 percent to $71.55 after Deutsche Bank upgraded the Dow component to a "Buy" from a "Hold" rating. The NYSEArca pharmaceutical index <.drg> climbed 0.4 percent.


Shares of Mosaic Co gained 2.7 percent to $58.29. Excluding items, the fertilizer producer's quarterly earnings beat analysts' expectations, according to Thomson Reuters I/B/E/S.


The rise in payrolls shown by the jobs data did not make a dent in the still-high U.S. unemployment rate, but it calmed fears about the possibility of the U.S. Federal Reserve ending its highly stimulative monetary policy.


Concerns about the duration of the Fed's stimulus program prompted a pull-back from the market Thursday after a rally.


Minutes from the Fed's December policy meeting, released Thursday, showed Fed officials were increasingly worried about the risks of asset purchases to financial markets, though they looked set to continue with the open-ended stimulus program for now.


(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)



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Reid arrives in KC, nears deal to become coach


KANSAS CITY, Mo. (AP) — Andy Reid arrived in Kansas City on Friday, and the Chiefs are close to making an official announcement that he will become their next coach.


Reid and the Chiefs have reportedly agreed to a deal giving the longtime Eagles coach broad authority over football decisions. His deal came hours after the Chiefs announced they had parted with general manager Scott Pioli after four tumultuous seasons.


Reid inherits a team that went 2-14, matching the worst record in franchise history. But he'll also have the No. 1 pick in the NFL draft, and with five players voted to the Pro Bowl, Kansas City has building blocks in place to make a quick turnaround.


While Reid will have authority in personnel decisions, it's expected that he will pursue longtime Packers personnel man John Dorsey to work with him as general manager.


Reid takes over for Romeo Crennel, who was fired Monday after one full season.


The Chiefs first interviewed Reid for about nine hours in Philadelphia on Wednesday, and then spent much of Thursday working out the details before coming to an agreement.


The addition of Reid and the departure of Pioli should help to stabilize a team that was expected to contend for the AFC West title but instead floundered all season.


Reid has experience turning around franchises, too.


He took over a team in Philadelphia that was just 3-13, but two years later went 11-5 and finished second in the NFC East. That began a stretch of five straight years in which Reid won at least 11 games and included a trip to the Super Bowl after the 2004 season.


During his tenure, the Eagles made nine playoff appearances, while Kansas City made three, and won 10 playoff games — something the Chiefs haven't done since 1993. Meanwhile, the Chiefs cycled through five head coaches and are now on their third in three years.


"Overall the job is still attractive," said Chiefs chairman Clark Hunt, who led the search for Crennel's replacement. "The franchise remains very well respected."


The fresh start afforded by the Chiefs should be welcomed by Reid.


Despite a 130-93-1 record and the most wins in Eagles history, he was just 12-20 the past two seasons. Reid also dealt with personal tragedy when his oldest son, Garrett, died during training camp after a long battle with drug addiction.


Reid will have more authority in Kansas City than any previous coach.


Hunt told The Associated Press this week that he was changing the Chiefs' organizational structure so that the coach and general manager report directly to him. Since his late father Lamar founded the team 53 years ago, the coach typically reported to the general manager.


The Chiefs issued a statement Friday that said they had "mutually parted ways" with Pioli after a four-year tenure marked by poor draft choices, ineffective free-agent moves, his own failed coaching hires and a growing fan rebellion.


"The bottom line is that I did not accomplish all of what I set out to do," Pioli said. "To the Hunt family — to the great fans of the Kansas City Chiefs — to the players, all employees and alumni, I truly apologize for not getting the job done."


Most of the Chiefs' top stars were drafted by Pioli's predecessor, Carl Peterson. The former Patriots executive struggled to find impact players, particularly at quarterback, while cycling through coaches and fostering a climate of dread within the entire organization.


Numerous longtime staff members were fired upon Pioli's arrival, and his inability to connect with fans resulted in unprecedented unrest. Some fans even paid for multiple banners to be towed behind planes before home games asking that he be fired.


On Dec. 1, linebacker Jovan Belcher shot the mother of his 3-month-old daughter, Kasandra Perkins, at a home not far from Arrowhead Stadium. Belcher then drove to the team's practice facility and shot himself in the head as Pioli and Crennel watched in the parking lot.


Pioli hasn't spoken publicly since the incident.


The three-time NFL executive of the year, all with New England, often spoke of putting together "the right 53," but he failed to do so, and now it falls on Reid and his staff to finish the job.


The most glaring position of need is quarterback.


Matt Cassel has two years left on a $63 million, six-year deal, but he played so poorly this season that he was benched in favor of Brady Quinn, who is now a free agent.


It's expected that the Chiefs will pursue a veteran quarterback while also choosing one in the draft, giving Reid options in training camp. Reid has had success working with young quarterbacks, including Brett Favre in Green Bay and Donovan McNabb in Philadelphia.


Decisions will also have to be made about left tackle Branden Albert, wide receiver Dwayne Bowe and even Pro Bowl punter Dustin Colquitt, all of whom can become free agents.


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