Decision on immunity for U.S. troops in Afghanistan by year-end: Karzai


KABUL (Reuters) - A decision on immunity for U.S. troops staying in Afghanistan after the 2014 planned withdrawal will be made by the end of the year, Afghan President Hamid Karzai said on Monday.


"The issue of immunity is under discussion (and) it is going to take eight to nine months before we reach agreement," Karzai told a news conference in the capital, Kabul, after returning from meetings with U.S. President Barack Obama in Washington.


The Afghan government rejected an initial U.S. proposal regarding the question of immunity and a second round of negotiations will take place this year in Kabul, he said.


Those negotiations could involve Afghanistan's Loya Jirga, a "grand assembly" of political and community leaders convened for issues of national importance, he added.


When asked if security would deteriorate in Afghanistan after the withdrawal of the NATO-led force, Karzai replied: "By no means... Afghanistan will be more secure and a better place."


The Obama administration has been considering a residual force of between 3,000 and 9,000 troops in Afghanistan to conduct counterterrorism operations while providing training and assistance for Afghan forces. But the administration said last week it did not rule out a complete withdrawal after 2014.


The United States is insisting on immunity from prosecution for any U.S. troops that remain.


(Reporting By Hamid Shalizi, writing by Amie Ferris-Rotman and Dylan Welch; Editng by Robert Birsel)



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E-Ink on a Smartphone? This Android Phone Has 2 Displays






Times Up


You can use the rear of the YotaPhone as a clock, or to display wallpapers.


Click here to view this gallery.






[More from Mashable: Hands On With Pebble, the Internet’s Favorite Smart Watch]


LAS VEGAS — What if your phone had two displays? Announced in mid-December, YotaPhone aims to change how people use their smartphones by bringing together a full-color LCD display on one side of the phone and an e-ink display on the other.


I caught up with Yota Device’s Vladislav Martynov at CES to give the phone a closer look.


[More from Mashable: 5 Chinese Tech Brands You’ll Be Hearing From in 2013]


In essence, the two displays on the handset each have their own unique purpose. The front display is used just as you might your traditional smartphone screen to run apps, browse the web or watch videos.


The rear display on the YotaPhone is what makes it stand out. An electronic paper display, it shows content you push to it from the front of the device. Less for interacting with and more for reference information, you can use the display for a map to your next destination, a clock, or a place to keep the boarding pass for your flight handy.


Martynov showed me a few applications designed specifically to use with the screen as well, including an app that shows low long you’ve kept a particular goal, such as not smoking. The company plans to release an API for other developers to make applications that take advantage of the dual-screen functionality as well.


Running Android 4.1 Jelly Bean, Martynov says that he plans to keep Android as vanilla as possible, something he feels is very important. He also wants to make sure that the phone is on-par with high-end Android smartphones, spec-wise. The current iteration uses the Qualcomm Snapdragon MSM 8960 platform, and Corning’s 3D Gorilla Glass. It’s also a multi-band LTE handset that can run on LTE networks anywhere in the world.


YotaPhone is expected to go one sale during the second half of 2013.


What uses do you see for an e-ink second screen? Let us know your thoughts in the comment.


This story originally published on Mashable here.


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It's Halle Berry vs. Eva Longoria and the Thigh's the Limit







Style News Now





01/13/2013 at 11:25 PM ET











Halle Berry, Eva Longoria 2013 Golden GlobesJason Merritt/Getty (2)


We could call it pulling an Angelina, but at this point, lots of stars have flashed lots of legs on lots of red carpets — and Halle Berry and Eva Longoria are two of the latest.


The stars tied for the “highest slit” award at the Golden Globes Sunday night, beating fellow risk-takers Lea Michele, Miranda Kerr and Katharine McPhee and giving all of us quite the eyeful. Berry gave the goods while posing in her Versace gown, while Longoria (in Emilio Pucci) made her big reveal as she walked toward the Beverly Hilton. So whose leg flashing did you like better? Vote in our poll below!






PHOTOS: FIND OUT WHICH STARS MADE THE BEST DRESSED LIST




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Flu more widespread in US; eases off in some areas


NEW YORK (AP) — Flu is now widespread in all but three states as the nation grapples with an earlier-than-normal season. But there was one bit of good news Friday: The number of hard-hit areas declined.


The flu season in the U.S. got under way a month early, in December, driven by a strain that tends to make people sicker. That led to worries that it might be a bad season, following one of the mildest flu seasons in recent memory.


The latest numbers do show that the flu surpassed an "epidemic" threshold last week. That is based on deaths from pneumonia and influenza in 122 U.S. cities. However, it's not unusual — the epidemic level varies at different times of the year, and it was breached earlier this flu season, in October and November.


And there's a hint that the flu season may already have peaked in some spots, like in the South. Still, officials there and elsewhere are bracing for more sickness


In Ohio, administrators at Miami University are anxious that a bug that hit employees will spread to students when they return to the Oxford campus next week.


"Everybody's been sick. It's miserable," said Ritter Hoy, a spokeswoman for the 17,000-student school.


Despite the early start, health officials say it's not too late to get a flu shot. The vaccine is considered a good — though not perfect — protection against getting really sick from the flu.


Flu was widespread in 47 states last week, up from 41 the week before, the Centers for Disease Control and Prevention said on Friday. The only states without widespread flu were California, Mississippi and Hawaii.


The number of hard-hit states fell to 24 from 29, where larger numbers of people were treated for flu-like illness. Now off that list: Florida, Arkansas and South Carolina in the South, the first region hit this flu season.


Recent flu reports included holiday weeks when some doctor's offices were closed, so it will probably take a couple more weeks to get a better picture, CDC officials said Friday. Experts say so far say the season looks moderate.


"Only time will tell how moderate or severe this flu season will be," CDC Director Dr. Thomas Frieden said Friday in a teleconference with reporters.


The government doesn't keep a running tally of adult deaths from the flu, but estimates that it kills about 24,000 people in an average year. Nationally, 20 children have died from the flu this season.


Flu vaccinations are recommended for everyone 6 months or older. Since the swine flu epidemic in 2009, vaccination rates have increased in the U.S., but more than half of Americans haven't gotten this year's vaccine.


Nearly 130 million doses of flu vaccine were distributed this year, and at least 112 million have been used. Vaccine is still available, but supplies may have run low in some locations, officials said.


To find a shot, "you may have to call a couple places," said Dr. Patricia Quinlisk, who tracks the flu in Iowa.


In midtown Manhattan, Hyrmete Sciuto got a flu shot Friday at a drugstore. She skipped it in recent years, but news reports about the flu this week worried her.


During her commute from Edgewater, N.J., by ferry and bus, "I have people coughing in my face," she said. "I didn't want to risk it this year."


The vaccine is no guarantee, though, that you won't get sick. On Friday, CDC officials said a recent study of more than 1,100 people has concluded the current flu vaccine is 62 percent effective. That means the average vaccinated person is 62 percent less likely to get a case of flu that sends them to the doctor, compared to people who don't get the vaccine. That's in line with other years.


The vaccine is reformulated annually, and this year's is a good match to the viruses going around.


The flu's early arrival coincided with spikes in flu-like illnesses caused by other bugs, including a new norovirus that causes vomiting and diarrhea, or what is commonly known as "stomach flu." Those illnesses likely are part of the heavy traffic in hospital and clinic waiting rooms, CDC officials said.


Europeans also are suffering an early flu season, though a milder strain predominates there. China, Japan, the West Bank, the Gaza Strip, Algeria and the Republic of Congo have also reported increasing flu.


Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.


Most people with flu have a mild illness. But people with severe symptoms should see a doctor. They may be given antiviral drugs or other medications to ease symptoms.


Some shortages have been reported for children's liquid Tamiflu, a prescription medicine used to treat flu. But health officials say adult Tamiflu pills are available, and pharmacists can convert those to doses for children.


___


Associated Press writers Dan Sewell in Cincinnati, Catherine Lucey in Des Moines, and Malcolm Ritter in New York contributed to this report.


___


Online:


CDC flu: http://www.cdc.gov/flu/index.htm


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Stock index futures trade flat to higher

LONDON (Reuters) - Stock index futures pointed to a flat to higher open on Wall Street on Monday, with futures for the S&P 500 up 0.1 percent at 0844 GMT.


Dow Jones and Nasdaq 100 futures were unchanged.


European shares were also flat, with the FTSEurofirst 300 <.fteu3> just shy of a two-year high. The pan-European index has risen almost 3 percent since the start of the year.


The U.S. economy is expected to grow by 2.5 percent in 2013, improving to 3.5 percent growth in 2014, top Fed official Charles Evans said on Monday. Evans also forecast the U.S. unemployment rate would be 7.4 percent, easing to about 7 percent in 2014. Fed Chairman Ben Bernanke speaks at 2100 GMT. [ID:nL4N0AJ1JA]


Americans are beginning to feel the pinch from austerity measures. Paychecks across the country have shrunk over the last week due to higher federal tax rates, and workers say they are cutting back on spending.


Apple Inc has almost halved its order with suppliers of LCD panels for the iPhone 5 in the current quarter due to weak demand, Japanese daily Nikkei reported on Monday.


Oracle Corp released an update to its Java software for surfing the Web on Sunday, which security experts said fails to protect PCs from attack by hackers intent on committing cyber crimes.


Transocean Ltd said billionaire activist investor Carl Icahn bought a 1.56 percent stake in the offshore rig contractor and is looking to increase his holding.


Japan Airlines Co (JAL) said on Sunday that a Boeing Co 787 Dreamliner jet undergoing checks in Tokyo following a fuel leak at Boston airport last week had leaked fuel during tests earlier in the day.


Pickup truck sales are expected to outpace the broader U.S. auto market this year helped by a recovering housing market and a slew of new models from the three big U.S. automakers, executives and analysts said on Sunday.


American International Group Inc has filed a lawsuit against a vehicle created by the Federal Reserve Bank of New York to help bail out the insurer, in a bid to preserve its right to sue Bank of America Corp and other issuers of mortgage debt that went sour.


Bank of America Corp directors have reached a $62.5 million settlement to resolve investor claims over the bank's acquisition of Merrill Lynch & Co, a person familiar with the matter said, after a federal judge expressed reservations about an earlier version of the accord.


JPMorgan Chase & Co's board is expected to dock the 2012 bonuses of Chief Executive James Dimon and another top executive because of the "London Whale" trading debacle, the Wall Street Journal reported, citing people close to the company.


The first big earnings week of 2013 features major banks Goldman Sachs and JPMorgan Chase & Co, as well as online retailer eBay on Wednesday. Thursday's reports include Citigroup, Bank of America and chip maker Intel . General Electric, the largest U.S. conglomerate, is due to post fourth-quarter earnings on Friday.


The Dow Jones industrial average <.dji> gained 17.21 points, or 0.13 percent, to 13,488.43. The Standard & Poor's 500 Index <.spx> dipped 0.07 points to 1,472.05. The Nasdaq Composite Index <.ixic> added 3.88 points, or 0.12 percent, to 3,125.64.


(Reporting By Francesco Canepa; Editing by John Stonestreet)



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France bombs Mali rebels, African states ready troops


BAMAKO/PARIS (Reuters) - French aircraft pounded Islamist rebels in Mali for a second day on Saturday and neighboring West African states sped up their plans to deploy troops in an international campaign to prevent groups linked to al Qaeda expanding their power base.


France, warning that the control of northern Mali by the militants posed a security threat to Europe, intervened dramatically on Friday as heavily armed Islamist fighters swept southwards towards Mali's capital Bamako.


Under cover from French fighter planes and attack helicopters, Malian troops routed a rebel convoy and drove the Islamists out of the strategic central town of Konna, which they had seized on Thursday. A senior army officer in the capital Bamako said more than 100 rebel fighters had been killed.


A French pilot died on Friday when rebels shot down his helicopter near the town of Mopti. Hours after opening one front against al Qaeda-linked Islamists, France mounted a commando raid to try to rescue a French hostage held by al Shabaab militants in Somalia, also allied to al Qaeda, but failed to prevent the hostage being killed.


French President Francois Hollande made clear that France's aim in Mali was to support the West African troop deployment, which is also endorsed by the United Nations, the European Union and the United States.


Western countries in particular fear that Islamists could use Mali as a base for attacks on the West and expand the influence of al Qaeda-linked militants based in Yemen, Somalia and North Africa.


"We've already held back the progress of our adversaries and inflicted heavy losses on them," Hollande said. "Our mission is not over yet."


A resident in the northern city of Gao, one of the Islamists' strongholds, reported scores of rebel fighters were retreating northward in pickup trucks on Saturday.


"The hospital here is overwhelmed with injured and dead," he said, asking not to be identified for fear of reprisals.


In Konna, a shopkeeper reported seeing scores of dead Islamist fighters piled in the streets, as well as the bodies of dozens of uniformed soldiers.


A senior official with Mali's presidency announced on state television that 11 Malian soldiers had been killed in the battle for Konna, with around 60 others injured.


Human Rights Watch said around 10 civilians had died in the violence, including three children who drowned trying to cross a river to safety. It said other children recruited to fight for the Islamists had been injured.


With Paris urging West African nations to send in their troops quickly, Ivory Coast President Alassane Ouattara, chairman of the regional bloc ECOWAS, kick-started a U.N.-mandated operation to deploy some 3,300 African soldiers.


TROOPS BY MONDAY


The mission had not been expected to start until September.


"By Monday at the latest, the troops will be there or will have started to arrive," said Ali Coulibaly, Ivory Coast's African Integration Minister. "Things are accelerating ... The reconquest of the north has already begun."


The multinational force is expected to be led by Nigerian Major-General Shehu Abdulkadir and draw heavily on troops from West Africa's most populous state. Burkina Faso, Niger and Senegal each announced they would send 500 soldiers.


French army chief Edouard Guillaud said France had no plan to chase the Islamists into the north with land troops, and was waiting for ECOWAS forces. France has deployed some special forces units to the central town of Mopti and sent hundreds of soldiers to Bamako in "Operation Serval" - named after an African wildcat.


Concerned about reprisals on French soil, Hollande announced he had instructed Prime Minister Jean-Marc Ayrault to tighten security in public buildings and on public transport in France.


Hollande's intervention in Mali could endanger eight French nationals being held by Islamists in the Sahara. A spokesman for one of Mali's rebel groups, Ansar Dine, said there would be repercussions.


"There are consequences, not only for French hostages, but also for all French citizens, wherever they find themselves in the Muslim world," Sanda Ould Boumama told Reuters. "The hostages are facing death."


The French Defense Ministry said its failed bid on Friday night to rescue a French intelligence officer held hostage in Somalia since 2009 was unrelated to events in Mali.


The ministry said it believed the officer had been killed by his captors along with at least one French commando. But the Harakat Al-Shabaab Al-Mujahideen insurgent group that was holding Denis Allex said he was alive and being held at a location far from the raid.


RED ALERT


The French Foreign Ministry stepped up its security alert on Mali and parts of neighboring Mauritania and Niger on Friday, extending its red alert - the highest level - to include Bamako.


France advised its 6,000 citizens in Mali to leave. Thousands more French live across West Africa, particularly in Senegal and Ivory Coast.


European Union foreign policy chief Catherine Ashton on Friday urged an "accelerated international engagement" and said the bloc would speed up plans to deploy 200 troops to train Malian forces.


A U.S. official said the Pentagon was weighing options such as intelligence-sharing with France and logistics support. French officials suggest U.S. surveillance capacity, including unmanned drones, would prove valuable in vast northern Mali.


In Britain, a spokesman said Prime Minister David Cameron had spoken to Hollande to express support for France's intervention and to offer two C-17 transport planes to assist the mission.


He said both men discussed "the need to work with the Malian government, regional neighbors and international partners to prevent a new terrorist haven developing on Europe's doorstep and to reinvigorate the U.N.-led political process once the rebel advance has been halted".


Military analysts voiced doubt, however, about whether Friday's action was the start of a swift operation to retake northern Mali - a harsh, sparsely populated terrain the size of France - as neither equipment nor ground troops were ready.


"We're not yet at the big intervention," said Mark Schroeder, of the risk and security consultancy Stratfor.


More than two decades of peaceful elections had earned Mali a reputation as a bulwark of democracy - but that image unraveled in a matter of weeks after a military coup last March that paved the way for the Islamist rebellion.


Interim President Dioncounda Traore, under pressure for bolder action from Mali's military, declared a state of emergency on Friday. Traore cancelled a long-planned official trip to Paris on Wednesday because of the violence.


"Every Malian must henceforth consider themselves a soldier," he said on state TV.


On the streets of Bamako, some cars were driving around with French flags draped from the windows to celebrate Paris's intervention.


"It's thanks to France that Mali will emerge from this crisis," said student Mohamed Camera. "This war must end now."


(Additional reporting Adama Diarra, Tiemoko Diallo and Rainer Schwenzfeier in Bamako, Mathieu Bonkoungou in Ouagadougou, Joe Bavier in Abidjan and Elizabeth Pineau in Paris; Editing by Daniel Flynn and Kevin Liffey)



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First BlackBerry 10 smartphone may launch on February 28th







Research in Motion (RIMM) is scheduled to formally unveil its BlackBerry 10 operating system on January 30th, however it is unclear when we will see the first new BlackBerry smartphones launch. Despite the fact that all four major U.S. carriers — Verizon (VZ), AT&T (T), Sprint (S) and T-Mobile — have confirmed plans to carry new BlackBerry 10 devices in 2013, RIM has remained quiet regarding release details. According to an image provided to BGR and other publications allegedly showing Best Buy Canada’s (BBY) internal inventory system, the first BlackBerry 10 smartphone could launch in Canada on February 28th.


[More from BGR: Samsung cancels Windows RT plans in U.S.]






This specific release date concerns Canadian carrier Bell (BCE), though the phone will likely launch on additional carriers at the same time if the date is accurate.


[More from BGR: LG reportedly halts Nexus 4 production to make way for new Nexus device]


When contacted by BGR for comment, RIM declined to confirm or deny the date. “We understand that there is a lot of excitement for BlackBerry 10,” a RIM spokesman told BGR via email. “We will launch the platform on January 30th and until then we won’t comment on speculation.”


RIM has previously said it will announce availability and pricing for its debut BlackBerry 10 devices at the launch event on January 30th.


Thanks, Daniel


This article was originally published on BGR.com


Wireless News Headlines – Yahoo! News





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Miss New York Mallory Hytes Hagan Wins Miss America















01/12/2013 at 11:45 PM EST







Miss American 2013 Mallory Hytes Hagan


CraigSjodin/ABC


The crown is headed to the Big Apple!

Brooklyn, N.Y., native Mallory Hytes Hagan was crowned Miss America in Las Vegas on Saturday.

Miss New York, 23, beat out Miss South Carolina Ali Rogers, who placed second, and Miss Oklahoma Alicia Clifton, who finished third. Miss Wyoming Lexie Madden and Miss Iowa Mariah Cary rounded out the top five.

Miss Montana Alexis Wineman, who has autism, was one of 16 semifinalists.

Hagan tapped danced to James Brown's "Get Up Off That Thing" for her talent and answered a question about armed guards in schools from Good Morning America's Sam Champion, who was one of the celebrity judges for the pageant this year, in the Q&A portion of the competition.

"I don't think the proper way to fight violence is with violence," she said, donning a white evening gown.

Hagan, whose platform is child sexual abuse prevention, attended the Fashion Institute of Technology and hopes to obtain a degree in Cosmetics and Fragrance Marketing, according to her online bio.

She won a $50,000 scholarship as well as a sash and a crown.

Hagan's win was a bit of a surprise, considering Las Vegas oddsmakers didn't have her among the top 15 favorites to don the crown at the conclusion of the two-hour competition at Las Vegas's Planet Hollywood Resort and Casino.

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Flu more widespread in US; eases off in some areas


NEW YORK (AP) — Flu is now widespread in all but three states as the nation grapples with an earlier-than-normal season. But there was one bit of good news Friday: The number of hard-hit areas declined.


The flu season in the U.S. got under way a month early, in December, driven by a strain that tends to make people sicker. That led to worries that it might be a bad season, following one of the mildest flu seasons in recent memory.


The latest numbers do show that the flu surpassed an "epidemic" threshold last week. That is based on deaths from pneumonia and influenza in 122 U.S. cities. However, it's not unusual — the epidemic level varies at different times of the year, and it was breached earlier this flu season, in October and November.


And there's a hint that the flu season may already have peaked in some spots, like in the South. Still, officials there and elsewhere are bracing for more sickness


In Ohio, administrators at Miami University are anxious that a bug that hit employees will spread to students when they return to the Oxford campus next week.


"Everybody's been sick. It's miserable," said Ritter Hoy, a spokeswoman for the 17,000-student school.


Despite the early start, health officials say it's not too late to get a flu shot. The vaccine is considered a good — though not perfect — protection against getting really sick from the flu.


Flu was widespread in 47 states last week, up from 41 the week before, the Centers for Disease Control and Prevention said on Friday. The only states without widespread flu were California, Mississippi and Hawaii.


The number of hard-hit states fell to 24 from 29, where larger numbers of people were treated for flu-like illness. Now off that list: Florida, Arkansas and South Carolina in the South, the first region hit this flu season.


Recent flu reports included holiday weeks when some doctor's offices were closed, so it will probably take a couple more weeks to get a better picture, CDC officials said Friday. Experts say so far say the season looks moderate.


"Only time will tell how moderate or severe this flu season will be," CDC Director Dr. Thomas Frieden said Friday in a teleconference with reporters.


The government doesn't keep a running tally of adult deaths from the flu, but estimates that it kills about 24,000 people in an average year. Nationally, 20 children have died from the flu this season.


Flu vaccinations are recommended for everyone 6 months or older. Since the swine flu epidemic in 2009, vaccination rates have increased in the U.S., but more than half of Americans haven't gotten this year's vaccine.


Nearly 130 million doses of flu vaccine were distributed this year, and at least 112 million have been used. Vaccine is still available, but supplies may have run low in some locations, officials said.


To find a shot, "you may have to call a couple places," said Dr. Patricia Quinlisk, who tracks the flu in Iowa.


In midtown Manhattan, Hyrmete Sciuto got a flu shot Friday at a drugstore. She skipped it in recent years, but news reports about the flu this week worried her.


During her commute from Edgewater, N.J., by ferry and bus, "I have people coughing in my face," she said. "I didn't want to risk it this year."


The vaccine is no guarantee, though, that you won't get sick. On Friday, CDC officials said a recent study of more than 1,100 people has concluded the current flu vaccine is 62 percent effective. That means the average vaccinated person is 62 percent less likely to get a case of flu that sends them to the doctor, compared to people who don't get the vaccine. That's in line with other years.


The vaccine is reformulated annually, and this year's is a good match to the viruses going around.


The flu's early arrival coincided with spikes in flu-like illnesses caused by other bugs, including a new norovirus that causes vomiting and diarrhea, or what is commonly known as "stomach flu." Those illnesses likely are part of the heavy traffic in hospital and clinic waiting rooms, CDC officials said.


Europeans also are suffering an early flu season, though a milder strain predominates there. China, Japan, the West Bank, the Gaza Strip, Algeria and the Republic of Congo have also reported increasing flu.


Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.


Most people with flu have a mild illness. But people with severe symptoms should see a doctor. They may be given antiviral drugs or other medications to ease symptoms.


Some shortages have been reported for children's liquid Tamiflu, a prescription medicine used to treat flu. But health officials say adult Tamiflu pills are available, and pharmacists can convert those to doses for children.


___


Associated Press writers Dan Sewell in Cincinnati, Catherine Lucey in Des Moines, and Malcolm Ritter in New York contributed to this report.


___


Online:


CDC flu: http://www.cdc.gov/flu/index.htm


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Wall Street Week Ahead: Attention turns to financial earnings

NEW YORK (Reuters) - After over a month of watching Capitol Hill and Pennsylvania Avenue, Wall Street can get back to what it knows best: Wall Street.


The first full week of earnings season is dominated by the financial sector - big investment banks and commercial banks - just as retail investors, free from the "fiscal cliff" worries, have started to get back into the markets.


Equities have risen in the new year, rallying after the initial resolution of the fiscal cliff in Washington on January 2. The S&P 500 on Friday closed its second straight week of gains, leaving it just fractionally off a five-year closing high hit on Thursday.


An array of financial companies - including Goldman Sachs and JPMorgan Chase - will report on Wednesday. Bank of America and Citigroup will join on Thursday.


"The banks have a read on the economy, on the health of consumers, on the health of demand," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.


"What we're looking for is demand. Demand from small business owners, from consumers."


EARNINGS AND ECONOMIC EXPECTATIONS


Investors were greeted with a slightly better-than-anticipated first week of earnings, but expectations were low and just a few companies reported results.


Fourth quarter earnings and revenues for S&P 500 companies are both expected to have grown by 1.9 percent in the past quarter, according to Thomson Reuters I/B/E/S.


Few large corporations have reported, with Wells Fargo the first bank out of the gate on Friday, posting a record profit. The bank, however, made fewer mortgage loans than in the third quarter and its shares were down 0.8 percent for the day.


The KBW bank index <.bkx>, a gauge of U.S. bank stocks, is up about 30 percent from a low hit in June, rising in six of the last eight months, including January.


Investors will continue to watch earnings on Friday, as General Electric will round out the week after Intel's report on Thursday.


HOUSING, INDUSTRIAL DATA ON TAP


Next week will also feature the release of a wide range of economic data.


Tuesday will see the release of retail sales numbers and the Empire State manufacturing index, followed by CPI data on Wednesday.


Investors and analysts will also focus on the housing starts numbers and the Philadelphia Federal Reserve factory activity index on Thursday. The Thomson Reuters/University of Michigan consumer sentiment numbers are due on Friday.


Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, said he expected to see housing numbers continue to climb.


"They won't be that surprising if they're good, they'll be rather eye-catching if they're not good," he said. "The underlying drive of the markets, I think, is economic data. That's been the catalyst."


POLITICAL ANXIETY


Worries about the protracted fiscal cliff negotiations drove the markets in the weeks before the ultimate January 2 resolution, but fear of the debt ceiling fight has yet to command investors' attention to the same extent.


The agreement was likely part of the reason for a rebound in flows to stocks. U.S.-based stock mutual funds gained $7.53 billion after the cliff resolution in the week ending January 9, the most in a week since May 2001, according to Thomson Reuters' Lipper.


Markets are unlikely to move on debt ceiling news unless prominent lawmakers signal that they are taking a surprising position in the debate.


The deal in Washington to avert the cliff set up another debt battle, which will play out in coming months alongside spending debates. But this alarm has been sounded before.


"The market will turn the corner on it when the debate heats up," Prudential Financial's Krosby said.


The CBOE Volatility index <.vix> a gauge of traders' anxiety, is off more than 25 percent so far this month and it recently hit its lowest since June 2007, before the recession began.


"The market doesn't react to the same news twice. It will have to be more brutal than the fiscal cliff," Krosby said. "The market has been conditioned that, at the end, they come up with an agreement."


(Reporting by Gabriel Debenedetti; editing by Rodrigo Campos)



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