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Nov 16, 2012

RTTNews Wall Street at Close Commentary -November 16, 2012-: Stocks Gain Ground Amid Fiscal Cliff Talks

RTT News: Global Financial Newswires



Stocks Gain Ground Amid Fiscal Cliff Talks - U.S. Commentary

wallstreet2-103112-lg_14Nov12.jpg
11/16/2012 4:28 PM ET
Stocks finished Friday's session with modest gains, bouncing back from early losses following what was deemed a constructive meeting in Washington on the fiscal cliff.
Shares showed weakness early in the session, continuing a downtrend that has marked the last couple weeks. On Thursday, the Dow and the Nasdaq recorded their lowest closing levels since June. Worries that the President and the Congressional leadership would not be able to work out a long-term fix to the looming fiscal cliff has weighed on stocks since the election.
On Friday, President Barack Obama met with top-ranking members of Congress to work on a deal. News that the meeting had been constructive drove a mid-day advance on Wall Street.
The Dow Jones Industrial Average rose 45.93 points, or 0.37 percent, to close at 12,588.31. The Nasdaq climbed 16.19 points, or 0.57 percent, to end at 2,853.13. The S&P 500 advanced 6.55 points, or 0.48 percent, to finish at 1,359.88.
In corporate news, Dell was in focus. The PC maker said its quarterly profit fell 47 percent, amid lower sales and deteriorating margins. The company's results missed expectations. Dell also issued a cautious forecast for the fourth quarter.
Dell's stock fell sharply on the news. Shares finished at $8.86, down 70 cents on the day, or 7.3 percent.
by RTT Staff Writer

NYT Politics -November 16, 2012-: At White House, Top Lawmakers Say They Expect Budget Deal




At White House, Top Lawmakers Say They Expect Budget Deal

Congressional leaders left a meeting on Friday with President Obama expressing confidence that the two parties will reach a deal on tax increases and spending cuts by the end of the year.
Gov. Chris Christie of New Jersey spoke with Ari Fleischer, a former White House press secretary for President George W. Bush, at the Republican governors convention in Las Vegas on Wednesday.
Political Memo

G.O.P. Governors Meet, Amid Whispers of 2016

As Republicans examine how to recalibrate and regain their footing, they are moving forward without a clear national leader.

More Politics

Teachers in Florida last year protested a state proposal to cut school funding.

School Districts Brace for Cuts as Fiscal Crisis Looms

Without a resolution on budget cuts and tax increases, schools battered by the recession could face more belt-tightening.
Senator Harry Reid, the majority leader, at a news conference this week. He will take part in negotiations with President Obama.

Senate 'Gang of 8' Says This Isn't Its Moment in Deficit Talks

Members of the bipartisan group of senators known as the Gang of Eight say the best they can do is offer ideas for the negotiations between President Obama and Speaker John A. Boehner.
Bruce Merrill of Arizona State University led a salon on Tuesday on the Nov. 6 elections.

Elections, Still Not Over in Arizona, a Hot Topic

A group in Paradise Valley, Ariz., found that a discussion on the aftermath of the elections included talk of races in the state that are undecided with votes still being counted.

The Caucus

'Lincoln' Is Shown at White House

The Steven Spielberg film recounts the history of a president often mentioned by Barack Obama.
ADVERTISEMENT

Election 2012 iPhone App

A one-stop destination for the latest political news, from The Times and other top sources around the Web. Plus opinion, polls, campaign data and video.

Multimedia

Video: Romney Pins Loss on Obama's 'Gifts'
On a conference call with fund-raisers and donors, Mitt Romney attributed his White House loss to "gifts" President Obama gave to special interest groups.
Full Election Results
Results from the 2012 presidential, Senate and House Races.
Slide Show: After Hard-Fought Campaign, a Victory for Obama
Americans went to makeshift sites in East Coast communities devastated by Hurricane Sandy and traditional voting booths in schools, libraries and town halls across the rest of the country.

DealBook P.M. Edition -November 16, 2012-: Hostess Brands Moves to Wind Down Operations



Friday, November 16, 2012
TOP STORY
Hostess Brands Moves to Wind Down Operations The bankrupt maker of cream-filled pastries like Twinkies and Ho Hos said on Friday that it planned to liquidate, a week after one of the company's biggest unions went on strike to protest a labor contract.
In Debt: Twinkies' Shelf Life May Last a Little Longer Stephen J. Lubben says that even if a court grants Hostess Brands' motion to liquidate, there is a good chance it will include the sale of Hostess's intellectual property, including trademarks like Twinkie.
Mourning Twinkies on Twitter The bankruptcy announcement by Hostess Brands has overwhelmed a group of people mourning the potential loss of a nostalgic childhood treat that they haven't eaten in decades.
Week in Review A report faulted MF Global regulators. | European bank debt is, surprisingly, selling. | A trial opened in a $68 million insider trading case. | And Andrew Ross Sorkin prescribed a dose of realism for the chief of J.C. Penney. A look back on our reporting of the past week's highs and lows in finance.

Mergers & Acquisitions
Qatar Wealth Fund Backs Glencore's Bid for Xstrata Qatar Holding said it would back Glencore International's proposed $32 billion takeover of the mining company Xstrata.
DealBook Column: A Dose of Realism for the Chief of J.C. Penney Andrew Ross Sorkin says that J.C. Penney reported last week that its sales had fallen 26.1 percent in the most recent quarter, but Ronald B. Johnson, its chief executive, promoted the success of the company's store renovation plan.
With Jefferies Deal, 'Baby Berkshire' Deviates From Buffett Ian Cumming and Joseph Steinberg of Leucadia National prided themselves on being disciples of Warren E. Buffett, but on Monday the two did something Mr. Buffett has never done: buy an investment bank outright.
Investment Banking
In a Switch, Investors Are Buying European Bank Bonds Money managers have been buying the new bonds of the region's financial institutions, a good sign for banks. But the bonds could leave investors exposed.
Legal/Regulatory
House Report Faults MF Global Regulators When MF Global was on the brink of collapse, confusion spread not only among the firm's executives, but also among its regulators in Washington, according to a report.
Jon S. Corzine, MF Global's former chief executive, at a House panel in 2011.
House Report Says Corzine's Risky Bets Aided MF Global's Fall Excerpts from a broader MF Global report to be released on Thursday outlined a withering critique of Jon S. Corzine's 19-month tenure at the brokerage firm, which collapsed more than a year ago.
The Trade: For Obama, No Easy Fix for Convoluted Regulatory System Jesse Eisinger of ProPublica says that while the rule making will speed up, the core problems with the financial system and its regulators are deeper than personnel and sadly impervious to which party occupies the White House.
Defense Opens Insider Trading Case With Attack on Witnesses Anthony Chiasson and Todd Newman are accused of conspiring with six others to earn roughly $70 million from illegal trading in technology stocks.
Anthony Chiasson, who co-founded the Level Global Investors, faces charges of insider trading.
Trial to Open in $68 Million Insider Trading Case Prosecutors say Anthony Chiasson and Todd Newman were part of a conspiracy that made about $68 million illegally trading the shares of Dell and Nvidia.
S.E.C. Said to Be Investigating Money Manager's Trading Practices The Securities and Exchange Commission is investigating Peter J. Eichler Jr., a Los Angeles money manager, as his firm, Aletheia Research and Management, filed for bankruptcy protection late Sunday.
Defense Compares Former UBS Trader to Spartacus In his closing remarks to the jury, Charles Sherrard, the lawyer representing Kweku M. Adoboli, a former UBS trader standing trial on fraud allegations, said his client was like Spartacus because he stepped forward to take the blame for his team.
Buzz Tracker
JPMorgan and Credit Suisse to Pay $417 Million in Mortgage Settlement JPMorgan agreed to pay $296.9 million to settle with the Securities and Exchange Commission over the handling of subprime mortgages, and Credit Suisse agreed to pay $120 million, reported Jessica Silver-Greenberg for The New York Times.
DealBook Video
Week in Verse For those mourning Twinkies, enjoy Sean Comb's 2006 performance of "Missing You" from NBC's Today Show.

NYT Afternoon Edition -November 16, 2012-: Rockets Target Jerusalem; Israel Girds for Gaza Invasion

The New York Times
November 16, 2012

Afternoon Update


TOP NEWS

Rockets Target Jerusalem; Israel Girds for Gaza Invasion

By ISABEL KERSHNER, JODI RUDOREN and ALAN COWELL
Palestinian militants fired rockets for the first time at Jerusalem on Friday in a new escalation of hostilities that came as Israel seemed to be edging closer to a ground assault on Gaza.

At White House, Top Lawmakers Say They Expect Budget Deal

By JACKIE CALMES
Congressional leaders left a meeting on Friday with President Obama expressing confidence that the two parties will reach a deal on tax increases and spending cuts by the end of the year.

Benghazi, Not Petraeus Affair, Is Focus at Closed Hearings

By ERIC SCHMITT
David H. Petraeus apologized to lawmakers for his affair, but lawmakers turned their attention to statements by Ambassador Susan E. Rice over the Libya attack.

Iraq Said to Release Hezbollah Operative

By MICHAEL R. GORDON
Ali Musa Daqduq, accused by American military prosecutors of the killing of American troops, terrorism and espionage, was released despite the entreaties of the Obama administration.
DealBook

Hostess Brands Moves to Wind Down Operations

By MICHAEL J. DE LA MERCED
The bankrupt maker of cream-filled pastries like Twinkies and Ho Hos said on Friday that it planned to liquidate, a week after one of the company's biggest unions went on strike to protest a labor contract.
Arts

Video: The Sweet Spot | Nov. 16, 2012

Guilty pleasures? No. In fact, it's just the opposite. A. O. Scott and David Carr explain.
Opinion

Room for Debate

Crossing the Line Between 'Immigrant' and 'American'

Why are some immigrants and their descendants considered simply "American," while others are still thought of as "outsiders"?
BUSINESS
Wealth Matters

Hasty Decisions May Cost More Than Higher Taxes

By PAUL SULLIVAN
Investors anxious about automatic tax increases on Dec. 31, should President Obama and Congress fail to agree on a plan to avoid them, should still exercise prudence before trying to minimize exposure.

JPMorgan and Credit Suisse to Pay $417 Million in Mortgage Settlement

By JESSICA SILVER-GREENBERG
JPMorgan agreed to pay $296.9 million to settle with the Securities and Exchange Commission over the handling of subprime mortgages, and Credit Suisse agreed to pay $120 million.

Despite Accord, Spill Aftermath Shadows BP

By STANLEY REED and JULIA WERDIGIER
Thursday's agreement is another step in the company's struggle to improve its image, but it was not the comprehensive settlement that the company and investors were hoping for.

E.P.A. Upholds Ethanol-in-Gasoline Requirement

By MATTHEW L. WALD
The agency rejected requests from several states to relax the ethanol mandate because of a sharp decline in the corn crop.

Audit Shows Housing Agency Facing Shortfall

By ANNIE LOWREY
With losses at the Federal Housing Administration expected to swamp revenue, officials said they would adopt measures to avoid tapping taxpayer funds.

MarketWatch | Wall Street at Close Report -November 16, 2012-: U.S. stocks gain on hopeful budget talk

By Kate Gibson, MarketWatch 

NEW YORK (MarketWatch) — U.S. stocks climbed Friday, denting weekly losses, as optimistic words followed the opening round of negotiations on averting automatic spending cuts and tax increases set to begin Jan. 1. 



Reuters Enlarge Image
House Speaker John Boehner and President Obama at ”fiscal cliff” meeting Friday at the White House.
“It’s a distinct positive that they came out and said, ‘We talked, we saw some common ground.’ It’s not in either party’s interests to go over the cliff,” said Jim Dunigan, managing executive, investments, PNC Wealth Management, after congressional leaders emerged from the meeting with President Barack Obama and labeled the discussions “constructive.”
Halting a four-session losing run, the Dow Jones Industrial Average DJIA +0.37%  added 45.93 points, or 0.4%, to 12,588.31, leaving it with a 1.8% weekly loss.
The S&P 500 Index SPX +0.48% rose 6.55 points, or 0.5%, to 1,359.88, down 1.5% from the week-ago finish.
The Nasdaq Composite COMP +0.57%  advanced 16.19 points, or 0.6%, to 2,853.13, off 1.8% for the week. 

For every stock on the decline, nearly three rose on the New York Stock Exchange, where 949 million shares traded. Composite volume neared 4 billion. 

The price of oil climbed on concerns of supply disruption on intensified fighting in the Middle East. Crude futures for December delivery CLZ2 +1.37%   rose $1.22, or 1.4%, to $86,67 a barrel on the New York Mercantile Exchange.
Palestinian missiles hit areas around Jerusalem and Tel Aviv and Israel increased its bombing of the Gaza Strip, according to media accounts. The missile fired at Jerusalem is the first since the 1967 Middle East war, according to the Israeli Foreign Ministry.
Ahead of Friday’s opening bell, stock-index futures had gained after a Wall Street Journal report that the White House is in discussions to replace spending reductions in the so-called fiscal cliff with a smaller package of cuts and tax hikes. See: White House reportedly in talks to replace cuts. 
 
After meeting with President Obama on Friday, House Speaker John Boehner and Senate Majority Leader Harry Reid voiced optimism that they have a framework for a deal and they viewed the meeting as constructive
“Thank you, congressional leadership, for coming to your senses. I guess more than a 1,000-points down on the Dow industrials since the election was their wake-up call,” noted Elliot Spar, market strategist at Stifel Nicolaus.

“It’s a distinct positive that they came out and said ‘we talked, we saw some common ground.’ It’s not in either party’s interests to go over the cliff,” said Jim Dunigan, managing executive, investments, PNC Wealth Management. 

House Minority Leader Nancy Pelosi said there should be a goal to avert the cliff by Christmas, while Senate Minority Leader Mitch McConnell and Boehner both said Republicans were willing to put revenue on the table to reach a deal. 

“The challenge of this process is you’re held hostage to the headlines, every time someone mutters something in front of the cameras. Today we got a ray of sunshine, but that could change with the next comment,” said PNC’s Dunigan.
“It’s hard enough to forecast what companies are going to do, but politicians? There’s an argument that with six weeks to the end of the year, wouldn’t it be more sensible to look in performance and take risk off the table after a pretty good year,” said Garry Evans, global head of equity strategy at HSBC Holdings PLC in London. 

“The way I see it is we have a $1.3 trillion deficit, the pedal to the floor monetary policy, and all we have to show for it is 2% growth,” said Jack Ablin, chief investment officer at BMO Private Bank in Chicago. 

Industrial production in the U.S. unexpectedly fell in October as superstorm Sandy took out power in the northeast, with output at factories, mines and utilities declining 0.4% last month.
Kate Gibson is a reporter for MarketWatch, based in New York.

“It’s a distinct positive that they came out and said ‘we talked, we saw some common ground.’ It’s not in either party’s interests to go over the cliff,” said Jim Dunigan, managing executive, investments, PNC Wealth Management. 

House Minority Leader Nancy Pelosi said there should be a goal to avert the cliff by Christmas, while Senate Minority Leader Mitch McConnell and Boehner both said Republicans were willing to put revenue on the table to reach a deal. 

“The challenge of this process is you’re held hostage to the headlines, every time someone mutters something in front of the cameras. Today we got a ray of sunshine, but that could change with the next comment,” said PNC’s Dunigan. 

“It’s hard enough to forecast what companies are going to do, but politicians? There’s an argument that with six weeks to the end of the year, wouldn’t it be more sensible to look in performance and take risk off the table after a pretty good year,” said Garry Evans, global head of equity strategy at HSBC Holdings PLC in London. 

“The way I see it is we have a $1.3 trillion deficit, the pedal to the floor monetary policy, and all we have to show for it is 2% growth,” said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.
Industrial production in the U.S. unexpectedly fell in October as superstorm Sandy took out power in the northeast, with output at factories, mines and utilities declining 0.4% last month.

Kate Gibson is a reporter for MarketWatch, based in New York.




The Economist | New Selected Articles -November 16, 2012-: Israel edges closer to war




Pomegranate: Edging closer to war
The current round of fighting between Israel and Hamas is escalating dangerously fast
read more »
Schumpeter: Cleaning up the legal spill
Although the British oil giant had to agree to pay $4.5 billion to settle, it is breathing a sigh of relief
read more »

Video: Voting for peace
On November 17th Sierra Leoneans will choose their next president. The election is an important test of the country's progress since the end of its bloody civil war a decade ago
watch »

Free exchange: Shall the twain meet?
More rough seas for the global economy
read more »
Democracy in America: Voter suppression
The current House of Representatives is grossly unrepresentative
read more »
Daily chart: European economies guide
All the key numbers for understanding Europe's problems in one handy widget
read more »

Business in Vancouver | BIV Today's Business News -November 16, 2012-.



Technology

Flickr founder closes latest Vancouver tech venture, lays off staff

Stewart Butterfield, the Vancouver entrepreneur who co-founded the popular photo-sharing site Flickr, has announced he is ... READ MORE

Mining and Energy

 

Death at Boleo mine piles on more bad news for Baja Mining

As if the prospect of a $1.7 billion copper mine being shut down due to insolvency wasn’t bad enough, Baja Mining (TSX:BAJ) has now reported that ... READ MORE

Economy and Finance

 

Visa strongly urged to reconsider planned fee hike: CRFA

The Canadian Restaurant and Foodservices Association is urging Visa Canada Corp. to ... READ MORE

More News...

   

Attention skiers and boarders: season starts this weekend

Westbound lanes on new Port Mann open this weekend

Domestic demand for natural gas to increase: TD Economics