Wall Street dips as "fiscal cliff" fears outweigh data

NEW YORK (Reuters) - U.S. stocks fell slightly on Thursday, pulling back from six straight days of gains despite a batch of positive economic releases as "fiscal cliff" negotiations in Washington weighed on sentiment.


Weekly claims for jobless benefits dropped near the lowest level since February 2008 and retail sales rose in November after an October decline, improving the picture for consumer spending.


Best Buy Co shares shot up more than 18 percent after a report that the company's founder is expected to offer to buy the consumer electronics retailer by the end of the week.


Trading was constrained by the drawn-out fiscal talks between Democrats and Republicans. Investors worry that tax hikes and spending cuts set to begin in 2013 if a deal is not reached in Washington will hurt growth. Republican House Speaker John Boehner accused President Barack Obama of "slow-walking" the economy off the fiscal cliff.


"There's a lot of confusion. Nobody knows what's going to happen with the cliff," said Tom Schrader, managing director of U.S. equity trading at Stifel Nicolaus Capital Markets in Baltimore.


Despite the overarching concerns, the S&P 500 has managed gains for six sessions, touching its highest level since October 22 on Wednesday.


"I don't know if there's a lot of anticipation that they're going to get anything done, but the market doesn't seem too worried about it," Schrader said.


The Dow Jones industrial average <.dji> was down 9.35 points, or 0.07 percent, at 13,236.10. The Standard & Poor's 500 Index <.spx> lost 0.88 point, or 0.06 percent, at 1,427.60. The Nasdaq Composite Index <.ixic> rose 3.60 points, or 0.12 percent, at 3,017.41.


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


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


CVS Caremark Corp gained 3.0 percent to $48.97 after saying it expects higher earnings in 2013.


Best Buy's stock was trading up $2.09 at $14.27 at midday.


Jobless claims dropped 29,000 to a seasonally adjusted 343,000, indicating healing in the labor market.


(Editing by Kenneth Barry)



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North Korea launches rocket , raising nuclear arms stakes


SEOUL/TOKYO (Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to opponents.


The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far away as the continental United States.


"The satellite has entered the planned orbit," a North Korean television news reader clad in traditional Korean garb announced, after which the station played patriotic songs with the lyrics "Chosun (Korea) does what it says".


The rocket was launched just before 10 a.m. (0100 GMT), according to defense officials in South Korea and Japan, and was more successful than a rocket launched in April that flew for less than two minutes.


The North American Aerospace Defense Command (NORAD) said that it "deployed an object that appeared to achieve orbit", the first time an independent body has verified North Korean claims.


North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the U.N. Security Council to stiffen sanctions that it originally imposed in 2006 after the North's first nuclear test.


North Korea is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put in place by his late father, Kim Jong-Il.


North Korea hailed the launch as celebrating the prowess of all three members of the Kim family to rule since it was founded in 1948.


"At a time when great yearnings and reverence for Kim Jong-il pervade the whole country, its scientists and technicians brilliantly carried out his behests to launch a scientific and technological satellite in 2012, the year marking the 100th birth anniversary of President Kim Il Sung," its KCNA news agency said. Kim Il Sung, the current leader's grandfather, was North Korea's first leader.


The United States condemned the launch as "provocative" and a breach of U.N. rules, while Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely from the Security Council as China, the North's only major ally, will oppose them.


"The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences," the White House said in a statement.


U.S. intelligence has linked North Korea with missile shipments to Iran. Newspapers in Japan and South Korea have reported that Iranian observers were in the North for the launch, something Iran has denied.


Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on Sunday and who is known as a hawk on North Korea, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.


A North Korean Foreign Ministry spokesman reiterated that the rocket was a "peaceful project".


"The attempt to see our satellite launch as a long-range missile launch for military purposes comes from hostile perception that tries to designate us a cause for security tension," KCNA cited the spokesman as saying.


"STUMBLING BLOCK"


China had expressed "deep concern" prior to the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Jinping, met Kim Jong-un in Pyongyang.


On Wednesday, its tone was measured, regretting the launch but calling for restraint on any counter-measures, in line with a policy of effectively vetoing tougher sanctions.


"China believes the Security Council's response should be cautious and moderate, protect the overall peaceful and stable situation on the Korean peninsula, and avoid an escalation," Chinese Foreign Ministry spokesman Hong Lei told journalists.


Bruce Klingner, a Korea expert at the Heritage Foundation, said: "China has been the stumbling block to firmer U.N. action and we'll have to see if the new leadership is any different than its predecessors."


A senior adviser to South Korea's president said last week it was unlikely there would be action from the United Nations and Seoul would expect its allies to tighten sanctions unilaterally.


Kim Jong-un, believed to be 29 years old, took power when his father died on December 17 last year and experts believe the launch was intended to commemorate the first anniversary of his death. The April launch was timed for the centennial of the birth of Kim Il Sung.


Wednesday's success puts the North ahead of the South which has not managed to get a rocket off the ground.


"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.


There have been few indications the secretive and impoverished state, where the United Nations estimates a third of people are malnourished, has made any advances in opening up economically over the past year.


North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its workers overseas.


Many of its 22 million people need handouts from defectors, who have escaped to South Korea, for basic medicines.


Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways the North can attract world attention is by emphasizing its military threat.


It wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.


The North is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for about half a dozen nuclear bombs, according to nuclear experts.


It has also been enriching uranium, which would give it a second path to nuclear weapons as it sits on big natural uranium reserves.


"A successful launch puts North Korea closer to the capability to deploy a weaponized missile," said Denny Roy, a senior fellow at the East-West Center in Hawaii.


"But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry."


The North says its work is part of a civil nuclear program although it has also boasted of it being a "nuclear weapons power".


(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO, Sui-Lee Wee and Michael Martina in BEIJING,; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan and Robert Birsel)



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Facebook revises privacy controls in effort to make them more accessible, comprehensible






SAN FRANCISCO – Facebook is trying to make its privacy controls easier to find and understand in an effort to turn the world’s largest social network into a more discreet place.


The fine-tuning announced Wednesday will include several revisions that will start rolling out to Facebook Inc.‘s more than 1 billion users in the next few weeks.






The biggest change will be a new “privacy shortcuts” section that will appear as a tiny lock on the right-hand side at the top of people’s news feeds. This feature offers a drop-down box where users will be able to get answers to common questions such as “Who can see my stuff?”


Other updates will include a tool that will enable individuals to review all the publicly available pictures identifying them on Facebook.


Social Media News Headlines – Yahoo! News


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Want Megan Fox's Killer Body? Harley Pasternak Shares Her Workout






Celebrity Blog










12/12/2012 at 12:25 PM EST







Megan Fox with Brian Austin Green while pregnant, and last week in L.A.


GSI; Jon Kopaloff/FilmMagic


Lately I've been getting a lot of questions about Megan Fox and how incredible she looks only weeks after giving birth to her son. Megan, and her husband Brian Austin Green, have been clients of mine for years and may just be the fittest couple in Hollywood.

This week, I sat down with PEOPLE to answer some of those questions and share secrets to Megan's fit pregnancy and killer post-baby body.

How did Megan stay healthy throughout her pregnancy?
We worked out throughout her entire pregnancy. She was a model of health through the whole process. She really educated herself big time and had a great relationship with her physician so she really understood the safe boundaries of how to exercise and eat well during pregnancy. As a result, she knew how active she could be and she was very consistent and didn't overdo it.

As she progressed from trimester to trimester, we'd modify things. As a result, she was so fit at the point of delivery that it actually went more easily and she was able to get medical clearance relatively quickly to come back and keep working out.

How long after giving birth did she start working out?
Definitely within a few weeks she was able to come back and workout. We didn't start at full speed – we eased into it.

How did she train post-baby?
We used the exact same exercises as we did pre-baby. We just focused more on the process and adjusted our program to suit her specific needs and limitations. The workouts we did are like all of my other Five Factor workouts. They are five phases: a minimum five minute cardio warm-up, a lower body sculpting exercise, an upper body toning exercise, then an abdominal sculpting exercise, and finally, a five minute cool down. We tried to have her do minimal impact. Post-baby there shouldn't be a lot of jumping up and down.

On the days when she doesn't want to leave her baby and come to the gym to see me, she does my video game Harley Pasternak's Hollywood Workout. I actually developed it for a lot of my new mom clients from Jessica Simpson to Hilary Duff, Megan and Milla Jovovich. It's a great, intense workout.

A Sample Workout

Warm-up: Five minutes on the bike or treadmill

Lower Body: Skater lunge
Cross your right leg behind your left leg as you bend your left knee into a half-squat position. Extend your left arm out to the side and swing your right arm across your hips. Hop a few feet directly to the right, switching the position of your legs and arms. Repeat on opposite side.

Upper Body: Supine (lying down) triceps extension
Lie face up on a bench with your arms raised straight above you, a weight in each hand; slowly lower them to the sides of your forehead and repeat.

Abdominal Sculpting: Superman
Lay on your stomach with your legs and arms fully extended. Slowly, contract your lower back and raise your legs and arms off the ground. Then lower them back down.

Cool-down: Five minutes on stationary bike.

We do 20 repetitions of each upper body, lower body, and abs and cycle through those three exercises non-stop, repeating that circuit four times. Each day of the week she would come in and we'd do different body parts at least three days a week.

Post-baby, which is more important, exercise or diet? 
What's more important in a car, the gas or the tires? You need both. Megan and Brian eat really well. They both cook and love using their blender. They love my smoothie recipes! Megan's favorite is the red smoothie, which is whatever berries are in season, Chai tea, a scoop of protein powder and little bit of almond milk.

Check back every Wednesday for more insider tips from celebrity trainer Harley Pasternak on Hollywood's hottest bodies – and learn how to get one yourself! Plus: follow Harley on Twitter at @harleypasternak

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Congress examines science behind HGH test for NFL


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


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


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


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


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Wall Street adds slight gains after Fed

DEAR ABBY: I have been married for 14 years to a man who had two failed marriages. I never felt insecure in my married life until I read his answers to a Yahoo Answers poll that asked, "Do you dream about the one that got away?" and, "Have you found the love of your life?"My husband responded that he thinks about her very often, especially on her birthday and Valentine's Day. To the other question he replied he had found the love of his life, but the relationship had ended in divorce, which he admitted was his fault.I know he was talking about his first wife. I feel so sad and insecure. ...
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IMF loan to Egypt delayed as crisis deepens


CAIRO (Reuters) - A vital $4.8 billion International Monetary Fund loan to Egypt will be delayed until next month, its finance minister said on Tuesday, intensifying the political crisis gripping the Arab world's most populous nation.


As rival factions gathered in Cairo and Alexandria for a new round of demonstrations, Finance Minister Mumtaz al-Said said the delay in the loan agreement was intended to allow time to explain a heavily criticised package of economic austerity measures to the Egyptian people.


The announcement came after President Mohamed Mursi on Monday backed down on planned tax increases, seen as key for the loan to go ahead. Opposition groups had greeted the tax package, which had included duties on alcoholic drinks, cigarettes and a range of goods and services, with furious criticism.


"Of course the delay will have some economic impact, but we are discussing necessary measures (to address that) during the coming period," the minister told Reuters, adding: "I am optimistic ... everything will be well, God willing."


Prime Minister Hisham Kandil said Egypt had requested that the loan be delayed by a month.


"The challenges are economic not political and must be dealt with aside from politics," he told a news conference.


Kandil said the reforms would not hurt the poor. Bread sugar and rice would not be touched, but cigarettes and cooking oil would go up and fines would be imposed for public littering. In a bid to rebuild consensus, he said there would be a national dialogue about the economic program next week.


In Washington, the IMF said Egypt had asked for the loan to be postponed "in light of the unfolding developments on the ground". The Fund stood ready to consult with Egypt on resuming discussions on the stand-by loan, a spokeswoman said.


GUNMEN OPEN FIRE


On the streets of the capital, tensions ran high after nine people were hurt when gunmen fired at protesters camping in Tahrir Square, according to witnesses and Egyptian media.


The opposition has called for a major demonstration it hopes will force Mursi to postpone a referendum on a new constitution.


Outside the presidential palace, dozens of protesters succeeded in pushing down two giant concrete blocks forming a small part of a wall blocking access to the site.


Thousands of flag-waving Islamist Mursi supporters, who want the vote to go ahead as planned on Saturday, assembled at a nearby mosque, setting the stage for further street confrontations in a crisis that has divided the nation of 83 million.


In Egypt's second city of Alexandria, thousands of rival demonstrators gathered at separate venues. Mursi's backers chanted: "The people want implementation of Islamic law," while his opponents shouted: "The people want to bring down the regime."


The upheaval following the fall of Hosni Mubarak last year is causing concern in the West, in particular the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979.


The turmoil has also placed a big strain on the economy, sending foreign currency reserves down to about $15 billion, less than half what they were before the revolt two years ago as the government has sought to defend the pound.


"Given the current policy environment, it's hardly a surprise that there's been a delay, but it is imperative that the delay is brief," said Simon Williams, HSBC economist in Dubai. "Egypt urgently needs that IMF accord, both for the funding it brings and the policy anchor it affords."


The IMF deal had been seen as giving a seal of approval to investors and donors about the government's economic plans, vital for drawing more cash into the economy to ease a crushing budget deficit and stave off a balance of payments crisis.


MASKED ATTACKERS


In central Cairo, police cars surrounded Tahrir Square in central Cairo, the first time they had appeared in the area since November 23, shortly after a decree by Mursi awarding himself sweeping temporary powers that touched off widespread protests.


The attackers, some masked, also threw petrol bombs that started a small fire, witnesses said.


"The masked men came suddenly and attacked the protesters in Tahrir. The attack was meant to deter us and prevent us from protesting today. We oppose these terror tactics and will stage the biggest protest possible today," said John Gerges, a Christian Egyptian who described himself as a socialist.


The latest bout of unrest has so far claimed seven lives in clashes between the Islamist Muslim Brotherhood and opponents who are also gathering outside Mursi's presidential palace.


The elite Republican Guard which protects the palace has yet to use force to keep protesters away from the graffiti-daubed building, now ringed with tanks, barbed wire and concrete barricades.


The army has told all sides to resolve their differences through dialogue, saying it would not allow Egypt to enter a "dark tunnel". For the period of the referendum, the army has been granted police powers by Mursi, allowing it to arrest civilians.


The army has portrayed itself as the guarantor of the nation's security, but so far it has shown no appetite for a return to the bruising front-line political role it played after the fall of Mubarak, which severely damaged its standing.


OPPOSITION MARCHES


Leftists, liberals and other opposition groups called for marches say the hastily arranged constitutional referendum is polarizing the country and could put it in a religious straightjacket.


Mohamed ElBaradei, a prominent opposition leader and Nobel prize winner, said the referendum should be postponed for a couple of months due to the chaotic situation.


"This revolution was not staged to replace one dictator with another," he said in an interview with CNN.


Opposition leaders want the referendum to be delayed and hope they can get sufficiently large numbers of protesters on the streets to change Mursi's mind.


Islamists, who dominated the body that drew up the constitution, have urged their followers to turn out to show support for the president and for a referendum they feel sure of winning.


The opposition says the draft constitution fails to embrace the diversity of the population, a tenth of which is Christian, and invites Muslim clerics to influence lawmaking.


(Writing by Giles Elgood; Editing by Peter Graff and Will Waterman)



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Anne Hathaway Wears Bondage-Inspired Dress, Boots to Les Mis Premiere







Style News Now





12/11/2012 at 11:00 AM ET











Anne Hathaway Les Mis Dress
Rob Kim/FilmMagic


The lady is a vamp!


Anne Hathaway showed up to the Les Misérables premiere in New York City Monday night wearing what we can only call quite a dress. The black taffeta creation — reportedly by Tom Ford — featured a form-fitting front, sky-high slit (hello, Angelina!) and a parachute-like cape on the back.


The real showstopper, however, were Hathaway’s bondage-inspired boots, custom-made of faux leather because of the actress’s veganism, The Cut reports. The chain-like creations reached all the way to her thighs and featured tight paneling along the calves.


This look calls to mind the creativity of some of her other recent ensembles — her winged Givenchy Haute Couture dress and festooned navy gown — but with the severely slicked hair and dark lip, elevates her look to a new level.


We give Hathaway kudos for taking this look all the way to the edge, and can honestly say we can’t wait to see what she wears next. Tell us: What do you think of Hathaway’s look: hot or hot mess? Vote in our poll and leave your thoughts in the comments below! 






PHOTOS: SEE STARS’ DARING DRESSES FROM EVERY ANGLE!





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Surprise: New insurance fee in health overhaul law


WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.


The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.


Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.


"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.


Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.


The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.


Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.


The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.


Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.


The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.


But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.


"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.


Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.


America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.


But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.


"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.


The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.


The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.


It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.


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Tech shares, optimism on "cliff" propel Wall Street higher

NEW YORK (Reuters) - Technology shares led a 1 percent rise in major stock indexes on Tuesday, pushing the S&P 500 to its best levels since mid-October and erasing all of the post-election selloff.


The Nasdaq was lifted by a 3 percent gain in Apple Inc's stock to $545.37. The company's shares had dropped last week as investors took profits before a possible tax rise next year. Coming into Tuesday's trading, Apple shares had lost 25 percent from an all-time intraday high hit in September.


Other large tech stocks also rallied. Texas Instruments gained 3.5 percent to $30.88 after bumping up its profit target late Monday. That helped other chipmakers rally, with the PHLX Semiconductor index <.sox> up 1.9 percent.


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


The Dow Jones industrial average <.dji> rose 126.66 points, or 0.96 percent, at 13,296.54. The Standard & Poor's 500 Index <.spx> was up 14.55 points, or 1.03 percent, at 1,433.10. The Nasdaq Composite Index <.ixic> gained 44.40 points, or 1.49 percent, at 3,031.37.


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


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


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


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


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


But stocks have steadily marched higher on thin volume. The S&P 500 surpassed 1433.38 on Tuesday, retracing losses in the first seven sessions after President Barack Obama's re-election.


A positive report from Goldman Sachs Equity Research pushed up shares in some retailers. Luggage maker Tumi Holding Inc. was up 4.8 percent to $21.94 and Michael Kors Holding gained 4 percent to $51.76.


The U.S. Treasury is selling its remaining stake in insurer American International Group Inc . AIG's shares were up 4.1 percent at $34.74.


Unexpected improvement in data out of Europe set the positive tone early. In Germany, analyst and investor sentiment rose sharply in December, entering positive territory for the first time since May, a leading survey showed.


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


(Editing by Kenneth Barry)



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