Algerian Prime Minister Says at Least 37 Foreigners Dead in Siege


Anis Belghoul/Associated Press


Algerian Army vehicles on Sunday near a remote town in southeastern Algeria where hostages were taken in a four-day ordeal.







ALGIERS — In his first official tally of the deadly scope of the Algerian hostage crisis, Prime Minister Abdelmalek Sellal said Monday that the known death toll among the foreign captives had risen steeply to 37 from 23, and that five additional foreigners remained unaccounted for.




In a televised news conference, Mr. Sellal also said that 29 militants were killed and that three were captured alive during the four-day ordeal that terrorized a remote Algerian gas field refining site. Two of the attackers were Canadian, he contended.


Algerian officials had been forecasting that the tally of foreign dead would rise from a preliminary estimate of 23, a concern that was reinforced by reports that a significant number of hostages from Japan and the Philippines had been killed at the site. On Monday, the Algerian prime minister said the dead came from eight different nations, without specifying which ones. He also said that one Algerian hostage had been killed as well.


Mr. Sellal was more specific about the attackers, saying at the news conference that they had come from Egypt, Canada, Mali, Niger, Mauritania and Tunisia, although it was unclear how he knew for sure. Algerian officials have been saying that few if any of the attackers are believed to have been Algerian.


The prime minister asserted that the attackers had started out in northern Mali — a claim made by the attackers themselves, which had initially been dismissed by the Algerian authorities as far-fetched because the Malian border is hundreds of miles away.


But the prime minister added that the attackers had ultimately crossed into Algeria through its eastern border with Libya, which is much closer to the refining site. If true, it would serve as a powerful a reminder of Libya’s instability since the overthrow of Col. Muammar el-Qaddafi more than a year ago, and of the enormous distances that complicate the monitoring of national boundaries in the vast Sahara.


“We would need two NATOs to monitor our borders,” Mr. Sellal said.


He corroborated assertions made by other Algerian officials and accounts from freed hostages that the militants had intended to destroy the gas complex and had booby-trapped some hostages with explosives.


In all, the prime minister said, 790 workers were on the site, including 134 foreigners of 26 nationalities, when it was first seized by a heavily armed militant band in one of the most brazen assaults in years.


The prime minister’s news conference represented the most detailed Algerian tally of casualties in the days of alternating standoff and confrontation that began early on Wednesday as the raiders swept in from the desert to take over the internationally managed gas plant, hundreds of miles from Algiers.


Earlier Monday, the Philippine Foreign Affairs Department announced casualties among its citizens for the first time, saying six Filipino hostages had been killed and four were still missing.


Additionally, citing an unidentified government source, Reuters said Algeria had informed Japan that nine of its citizens had died — if corroborated, the highest death toll by a nation reported so far — while previous Japanese accounts had spoken of 10 unaccounted for. Officials in Tokyo declined to confirm those figures, but news reports quoted Prime Minister Shinzo Abe as saying that seven Japanese captives died and that three were still unaccounted for.


Japan’s NHK television interviewed an unidentified Algerian worker who escaped the gas plant. He said that not long after sporadic firing started, militants appeared, armed with machine guns, antitank rockets and antiaircraft missiles. He said the attackers were kind to Algerian staff members, who were given food and blankets. Their targets were the foreign workers, who were rounded up.


The first ones he saw killed were two Japanese and a Filipino, gunned down before his eyes. He said the militants made the foreign hostages wear bombs strapped onto their bodies. He fled during the army attack, and did not know if those foreigners had survived.


The standoff between several dozen radical Islamists and Algerian security services came to a bloody conclusion on Saturday when the Algerians assaulted the kidnappers’ last redoubt at the refining site, where hundreds of Algerian and scores of expatriate workers were employed.


The victims — from the United States, Britain, France, Japan and other countries — were killed after hours of harrowing captivity. An unknown number of the hostages died in the assault on Saturday; Algerian officials said they also killed most of the remaining hostage takers, who they said were followers of Mokhtar Belmokhtar, a warlord linked to Al Qaeda based in northern Mali. A regional Web site reported that he had issued a video claiming responsibility for the attack.


Adam Nossiter reported from Algiers, and Alan Cowell from London. Reporting was contributed by Steven Erlanger and Scott Sayare from Paris, Alan Cowell and Stanley Reed from London, Floyd Whaley from Manila, Martin Fackler from Tokyo, Eric Schmitt and Michael R. Gordon from Washington, and Michael Schwirtz from New York.



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Atari US files for Ch. 11 to separate from parent






NEW YORK (AP) — Video game maker Atari’s U.S. operations have filed for Chapter 11 bankruptcy protection in an effort to separate from their French parent company.


In a statement, Atari says the move is necessary to secure investments it needs to grow in mobile and digital gaming.






Atari’s U.S. operations have shifted to focus on digital games and licensing, including developing mobile games, and have become a growth engine for its owner. France’s Infogrames Entertainment first took a stake in Atari in 2000. It acquired the remaining stake in 2008 and changed its name to Atari S.A.


But the U.S. operations have been better performing than the rest of the company. In fiscal 2012 digital and licensing revenue both grew significantly and contributed 70 percent of revenue, while sales in bricks-and-mortar stores declined.


In December, Atari S.A. said a credit agreement it entered into with investor BlueBay would lapse at the end of the year and the company was seeking other ways to raise capital. It added that it expects to report a “significant loss” for fiscal 2012.


Atari, which turned 40 last year, was a videogame pioneer with games like “Pong” and “Centipede,” but has changed owners several times amid financial problems. In its filing with the U.S. Bankruptcy Court in the Southern District of New York, Atari said it had $ 1 million to $ 10 million in assets and $ 10 million to $ 50 million in debt. It is seeking approval for $ 5.25 million in debtor-in-possession financing from private investment firm Tenor Capital Management.


Atari said it expects to sell its assets or confirm a restructuring plan within the next three to six months.


Gaming News Headlines – Yahoo! News





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Jessica Biel & Fan Have Impromptu Photo Shoot at Sundance















01/20/2013 at 12:45 PM EST



Jessica Biel is bringing the sunshine to Sundance!

The Emanuel and the Truth About Fishes actress had an impromptu photo shoot with a young girl when she visited the Variety Studio in Park City, Utah, on Saturday.

The duo posed for multiple shots in a photo booth until they got a snapshot that was "just right," an onlooker tells PEOPLE.

"They were having a great time," the source adds.

– Patrick Gomez


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Flu season fuels debate over paid sick time laws


NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.


A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.


"It's a balancing act" between physical health and financial well-being, she said.


An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for the 40 percent of American private-sector workers — more than 40 million people — who don't have it.


Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.


Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.


The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.


Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.


But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.


Michael Sinesky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."


"We're at the point, right now, where we cannot afford additional social initiatives," said Sinesky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.


Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.


To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.


"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.


Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.


Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.


In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.


The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.


Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.


While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.


"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."


___


Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.


___


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


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

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


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


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


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


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


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


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


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


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


CASH POURING IN, HOUSING DATA COULD HELP


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


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


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


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


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


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


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


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


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


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


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


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


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



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Letter From Washington: For Obama, Context for His 2nd Term







WASHINGTON — Here are two realities about U.S. second presidential terms: They aren’t cursed, as legend has it, and they are rarely better than first ones.




On Sunday, Barack Obama was to become the 17th U.S. president to be inaugurated for a second time, and historians offer useful context. “Obama has read the literature and understands overreach,” said Michael Beschloss, one of the more than half a dozen scholars who recently had dinner with the president. “This puts him one step ahead of most” re-elected presidents.


That sentiment contrasts with the mood of many Democrats these days. In conversations with a dozen Democratic politicians, with a few exceptions, there is a pervasive pessimism about the next several years. Almost all requested anonymity, not out of fear, they say, but to avoid giving solace to Republicans.


The political environment, they say, is as poisonous as it ever was.


The fiscal struggles won’t be settled in the next few months; more likely they’ll be prolonged through the year, crowding out most other issues, with the possible exception of immigration and conceivably gun violence legislation.


The president shows few signs of reaching out or broadening his horizon. If anything, Capitol Hill Democrats say, the inner circle is more closed. Mr. Obama, most recently at a news conference last week, deprecates the role of relationships in politics; he’s dismissive of the notion that all would be better if he would just drink whiskey with lawmakers, as Lyndon B. Johnson did. He’s right. Few will shift policy positions because of a good Scotch or bourbon. Yet his critics also are right when they point out that every successful president has forged crucial political relationships.


Some conditions are beyond a president’s control to influence. Saturation news coverage takes more of a toll in a second term. “One of the greatest threats to the modern presidency is overexposure,” said the historian Richard Norton Smith. “There will be Obama fatigue.”


Then there’s the supposed second-term curse: Johnson and the Vietnam War; Richard M. Nixon and Watergate; Bill Clinton and impeachment; George W. Bush and Hurricane Katrina.


Robert W. Merry, who has written about how presidents are evaluated, suggested “it’s almost impossible to find a president who had a second term better than his first.”


Presidents usually win re-election because they had a reasonably successful first term; that, some experts point out, distorts any comparisons, a state of affairs that became apparent with one of the earliest U.S. presidential re-elections: that of Thomas Jefferson in 1804.


“You can’t buy Louisiana every term,” Mr. Norton-Smith said. “That doesn’t mean there can’t be accomplishments.”


Ronald Reagan, in his second term, won sweeping tax changes and a historical arms-reduction treaty with the Soviet Union. Even some administrations known for conspicuous failings look better with perspective.


Franklin D. Roosevelt botched the economic recovery and tried to pack the Supreme Court in the late 1930s. He also, subtly, prepared the United States for World War II, a bigger achievement. Dwight D. Eisenhower’s party was clobbered in congressional elections, and he was embarrassed when a spy plane was shot down over the Soviet Union. He also sent U.S. troops to integrate the schools in Little Rock, Arkansas, a seminal moment. Mr. Clinton’s second term produced few tangible achievements, though he continued to reposition the Democratic Party.


Today, the second-term optimists among Democrats say the president is contending with a much stronger and stable economy than the one he inherited four years ago. They see a more self-assured chief executive. One outside operative contrasts a session he had with Mr. Obama four years ago with one a few weeks ago, saying the president is a different man, more confident, clearer on what he wants to do.


Mr. Obama no longer harbors illusions, these Democrats say, about Republican congressional leaders. He’s willing, even eager, for combat. Republicans, whose standing with the public continues its free fall, are one of Mr. Obama’s greatest assets.


Whatever the political limitations, historians say Mr. Obama needs to think big, starting with his second Inaugural Address.


“He has a chance to explain where America ought to be in 10 or 20 years,” said H.W. Brands of the University of Texas at Austin, who also attended the scholars’ dinner with the president. “He can rise above everyday politics and speak to history. Lincoln did it in 1865; F.D.R. in 1937. Now it’s Obama’s chance.”


Some Democrats say the president would be able to make a more compelling case if his inner circle weren’t so insular. The Team of Rivals of the early first term, when the president brought in diverse voices, has turned into the Band of Brothers, with a premium on personal loyalty. Top White House aides have let it be known that they will be making more personnel and policy decisions in the economics and foreign affairs arenas.


And while Mr. Obama may appreciate the dangers of second-term overreach, he’s quick to claim a mandate on issues, an assertion with a dubious historical resonance.


“Presidents should erase the word ‘mandate’ from their vocabulary,” Mr. Norton Smith said. “At best, it’s treacherous.”


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Galaxy S IV benchmarks may confirm 1.8GHz CPU and Android 4.2






Apple needs a new product targeting its next generation of customers which will be fueled by this newly announced product


“iPotty: Brilliant, or worst idea ever? Experts weigh in on new potty training device – Unveiled last week at the 2013 Consumer Electronics Show in Las Vegas, the base of the iPotty looks like a regular ol’ plastic toilet with removable bowl— but there’s an adjustable stand attached, specifically for an iPad.”






Something easy to clean which will survive toddlers dropping them into their training potty.


Wireless News Headlines – Yahoo! News





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Rob Lowe Acquits Himself Nicely in Lifetime's Prosecuting Casey Anthony (Review)















01/19/2013 at 11:45 AM EST







Rob Lowe in Prosecuting Casey Anthony


Allen Fraser/Lifetime


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When last we saw Rob Lowe in a Lifetime movie, he was playing murderer Drew Peterson with a sandy mustache that made him look like the world's most dangerous park ranger.

Lowe has a much better vehicle for himself in Prosecuting Casey Anthony (Saturday, 8 p.m. ET/PT), in which he plays Jeff Ashton, the Florida prosecutor who last year failed to win one of the country's most notorious capital cases.

As the court announces that Anthony, who had been charged with killing her 2-year-old daughter, Caylee, is guilty only of misdemeanor charges, Lowe clasps his hands in front of him and – in a fine, simple moment – appears to have all the life siphoned out of him. His face has the pallor of a wide smudge of cigarette ash.

The rest of the country, as you may recall, was more visibly stirred up at the stunning verdict.

Nancy Grace, clips of whose hectoring, furious TV commentary pepper the movie, famously declared: "The devil is dancing tonight."

Anthony has been living in seclusion since her release.

Prosecuting Casey Anthony basically tries to explain how public opinion and the deliberating jury responded so differently to the conflicting stories of prosecution and defense, one alleging that Anthony murdered the child and dumped her in a swamp, the other that the actual cause of death was accidental drowning in a swimming pool.

Even though this is based on prosecutor Ashton's book about the case, Imperfect Justice, in the movie he comes across as overly confident – Lowe laughs in derision during the defense's summation – even while his team's mistakes are quickly seized upon and exploited by opposing attorney Jose Baez (The Office's Oscar Nunez).

(Ashton, by the way, was sworn in Jan. 11 as Florida's new state attorney.)

The movie is shot with a stylistic blankness that does no harm to a compelling legal narrative, and the acting – like Lowe's – is unmannered, believable and to the point. Since most viewers will already come to this with memories from the endless news coverage, any other kind of acting would probably seem like scenery-chewing.

Not surprisingly, Anthony herself (Virginia Welch) has virtually nothing to say.

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Lilly drug chosen for Alzheimer's prevention study


Researchers have chosen an experimental drug by Eli Lilly & Co. for a large federally funded study testing whether it's possible to prevent Alzheimer's disease in older people at high risk of developing it.


The drug, called solanezumab (sol-ah-NAYZ-uh-mab), is designed to bind to and help clear the sticky deposits that clog patients' brains.


Earlier studies found it did not help people with moderate to severe Alzheimer's but it showed some promise against milder disease. Researchers think it might work better if given before symptoms start.


"The hope is we can catch people before they decline," which can come 10 years or more after plaques first show up in the brain, said Dr. Reisa Sperling, director of the Alzheimer's center at Brigham and Women's Hospital in Boston.


She will help lead the new study, which will involve 1,000 people ages 70 to 85 whose brain scans show plaque buildup but who do not yet have any symptoms of dementia. They will get monthly infusions of solanezumab or a dummy drug for three years. The main goal will be slowing the rate of cognitive decline. The study will be done at 50 sites in the U.S. and possibly more in Canada, Australia and Europe, Sperling said.


In October, researchers said combined results from two studies of solanezumab suggested it might modestly slow mental decline, especially in patients with mild disease. Taken separately, the studies missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living.


Those results were not considered good enough to win the drug approval. So in December, Lilly said it would start another large study of it this year to try to confirm the hopeful results seen patients with mild disease. That is separate from the federal study Sperling will head.


About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Current medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.


___


Online:


Alzheimer's info: http://www.alzheimers.gov


Alzheimer's Association: http://www.alz.org


___


Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP


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

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


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


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


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


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


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


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


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


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


CASH POURING IN, HOUSING DATA COULD HELP


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


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


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


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


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


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


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


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


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


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


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


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


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



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