Egypt demonstrators reject Mursi call for dialogue

CAIRO (Reuters) - Demonstrators rejected a call from Egypt's Islamist President Mohamed Mursi for a national dialogue after deadly clashes around his palace, demanding the "downfall of the regime" - the chant that brought down Hosni Mubarak.

Mursi said in a televised speech late on Thursday that plans were on track for a referendum on a new constitution on December 15 despite clashes that killed seven people. He proposed a meeting on Saturday with political leaders, "revolutionary youth" and legal figures to discuss the way forward after that.

But a leading activist group rejected the offer, and fresh demonstrations were called for Friday.

The "April 6" movement, which played a prominent role in igniting the revolt against Mubarak said on its Facebook page that Friday's protests would deliver a "red card" to Mursi.

Egypt has been plunged into turmoil since Mursi issued a decree on November 22 awarding himself wide powers and shielding his decisions from judicial review.

His Islamist supporters say the decree was necessary to prevent Mubarak-era judges from interfering with reforms. A constitution drawn up by a body dominated by Islamists is due to be put to a referendum next week.

The opposition has demanded that Mursi scrap his decree, postpone the referendum and redraft the constitution.

In his address, Mursi said: "I call for a full, productive dialogue with all figures and heads of parties, revolutionary youth and senior legal figures to meet this Saturday."

Several thousand opposition protesters near the palace waved their shoes in derision after his speech and shouted "Killer, killer" and "We won't go, he will go" - another of the slogans used against Mubarak in last year's revolt.

The Cairo headquarters of the Muslim Brotherhood, the group that propelled Mursi to victory in a June election, was set ablaze. Other offices of its political party were attacked.

TENTATIVE CONCESSION

The United States, worried about the stability of an Arab partner which has a peace deal with Israel and which receives $1.3 billion a year in U.S. military aid, had urged dialogue.

Mursi said his entire decree would lapse after the constitutional referendum, regardless of its result.

He said a new constituent assembly would be formed to redraft the constitution if Egyptians rejected the one written in the past six months.

The Republican Guard, an elite unit whose duties include protecting the presidential palace, restored peace on Thursday after a night of violence outside the palace, ordering rival demonstrators to leave by mid-afternoon.

Mursi supporters withdrew, but opposition protesters remained, kept away by a barbed wire barricade guarded by tanks. By evening their numbers had swelled to several thousand.

Thousands of supporters and opponents of Mursi had fought well into Thursday's early hours, using rocks, petrol bombs and guns. Officials said 350 were wounded in the violence. Six of the dead were Mursi supporters, the Muslim Brotherhood said.

Opposition groups have called for protests after Friday prayers aimed at "the downfall of the militia regime", a dig at what they see as the Brotherhood's organized street muscle.

A communique from a leftist group urged protesters to gather at mosques and squares across Egypt, and to stage marches in Cairo and its sister city Giza, converging on the presidential palace. "Egyptian blood is a red line," the communique said.

Hardline Islamist Salafis also summoned their supporters to protest against what they consider biased coverage of the crisis by some private Egyptian satellite television channels.

Since Mursi issued his decree, six of his advisers have resigned. Essam al-Amir, the director of state television, quit on Thursday, as did a Christian official at the presidency.

The Brotherhood's supreme guide, Mohamed Badie, called for unity, saying divisions "only serve the nation's enemies".

The Islamists, who have won presidential and parliamentary elections since Mubarak was overthrown, are confident they can win the referendum and the parliamentary election to follow.

As well as relying on his Brotherhood power base, Mursi may also tap into a popular yearning for stability and economic revival after almost two years of political turmoil.

Egypt's pound hit an eight-year low on Thursday, reversing gains made on hopes that a $4.8 billion IMF loan would stabilize the economy. The stock market fell 4.6 percent.

(Additional reporting by Edmund Blair and Marwa Awad; Writing by Alistair Lyon and Peter Graff; Editing by Louise Ireland)

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Apple to return some Mac production to U.S. in 2013

SAN FRANCISCO/NEW YORK (Reuters) – Apple Inc plans to move some production of Macintosh computers to the United States from China next year, Chief Executive Tim Cook said in remarks published on Thursday, in what could be a important test of the nascent comeback in U.S. electronics manufacturing.

Apple makes the majority of its products, from Macs to the iPhone and iPad, in China, the world’s factory floor for electronics. But like other U.S. corporations, it has come under fire for relying on low-cost Asian labor and contributing to the decline of the U.S. manufacturing sector.

Cook did not say which Macintosh products will be produced in the United States. But the effort is expected to go well beyond simple final assembly of devices, with Apple and unnamed partners building most or all of the components in the United States as well.

The company will spend more than $ 100 million on the U.S. manufacturing initiative, Cook said in an interview with Bloomberg Businessweek, published on Thursday.

“This doesn’t mean that Apple will do it ourselves, but we’ll be working with people and we’ll be investing our money,” Cook said.

He told NBC’s “Rock Center” program, in an interview to be aired later Thursday, that only one of the existing Mac product lines would be manufactured exclusively in the United States.

Apple declined to comment beyond the interview.

Apple’s decision, hailed by some analysts as an important first step even if it affected a tiny fraction of its overall output, was dismissed by others who saw it as an opportunistic public relations ploy with little effect on jobs.

Some Apple suppliers were struggling to assess its impact.

“At the end of the day, Apple knows moving production to the U.S. means lower profits for Apple,” said a senior executive at Taiwan’s Quanta Computer Inc who declined to be named because of the companies’ business relationship.

“If Apple is really serious about moving production to the U.S., they would need to invest 10 times or even 100 times of that amount. We see only a minor impact on Apple suppliers.”

Cross Research analyst Shannon Cross said it made sense for Apple to bring some manufacturing back to the United States, because some components were already being produced there.

Also, while cheaper labor costs have been a key factor in encouraging U.S. manufacturers to move production to China, wages and other costs have risen sharply – particularly in the main coastal manufacturing centers. Labor costs, moreover, account for only a tiny portion of overall expenses: the research firm iSupply says the total cost, including labor, for final manufacturing of an iPhone 5 is just $ 8.

Experts estimate that the total base cost of all components that go into the gadget, or bill of materials, comes to around $ 200.

Cross pointed to other potential benefits of U.S. manufacturing, including mitigating the risk of intellectual property theft.

Cook has said in the past that he would like to see more of the company’s products assembled back home, but declining U.S. manufacturing expertise made that difficult. Apple makes applications processors for the iPad and iPhone via Samsung Electronics in Austin, Texas, and sources glass for the same devices from a Corning facility in Kentucky.

IHS iSuppli, a research firm that tracks supply chains, said the company now outsources production of notebook personal computers to Taiwan’s Quanta Inc and Foxconn, which also makes the iPhone and iPad, and Pegatron Corp. Foxconn and Quanta have U.S. facilities.

“Apple’s move appears to be a symbolic effort to help improve its public image, which has been battered in recent years by reports of labor issues at its contract manufacturing partners in Asia,” Craig Stice, senior principal analyst for computer systems at His. “However, given Apple’s high profile in the market, the company’s ‘insourcing’ initiative could compel other companies to follow suit and transfer production to the United States over the next few years.”

Apple’s stock rose 1.6 percent on Thursday, a tepid bounceback from Wednesday’s 6.4 percent dive that was its biggest single-day loss in almost four years.

MAKING STRIDES

Analysts say the stock, which has fallen steadily since September, has come under pressure from investors worried about the rapidly intensifying competition from Google Inc’s Android products.

Samsung, in particular, has emerged as a formidable competitor, chipping away at Apple’s dominance in the tablet market and leading the smartphone pack in China, where the U.S. company’s smartphone market ranking fell to No. 6 in the third quarter from No. 4 in the previous three months, research outfit IDC estimates.

Samsung’s stock has climbed 8 percent since the end of September.

Apple’s domestic manufacturing effort will likely buy the brand some goodwill at home, where the debate about off-shoring has heated up as the economy sputters along. It has also come under fire for excessive working hours and dismal conditions at Foxconn’s plants in China, and critics have accused Apple of helping to create a high-stress environment for migrant workers.

Beyond the marketing boost, some analysts said Apple could blaze a trail should it prove that American manufacturing of electronics can be profitable.

“It seems to me like a nice time for Apple to do something,” Gartner analyst Carolina Milanesi said. “If it can be a profitable business, and others follow, then Apple has shown the way.”

Others were skeptical that Apple’s latest move was much more than a symbolic gesture.

“Such a strategy has been used by other companies in the past, which had no actual impact on their outsourcing,” said Li Qiang, director of New York-based China Labor Watch, in an emailed statement.

“The key question is how many jobs (percentage of the entire workforce) and what kind of jobs (production or administration) are to be moved back. I don’t think Apple is ready to relocate a large percentage of its production jobs back to U.S.”

Earlier this year, Google made waves when it announced it would build its Nexus Q home entertainment streaming device – deemed by many analysts to be an experimental product – in the heart of Silicon Valley. Google said it hoped to speed up innovation on the device and improve time-to-market.

Lenovo Group Ltd – China’s largest PC maker – said this year it will move a limited amount of computer manufacturing to North Carolina, to be closer to the market.

“Lenovo’s announcement appears to have flown under the radar,” said Jeffrey Wu, senior analyst for OEM research at IHS.

“Apple is a company that is always in the spotlight, and the company’s image sets the standard in the PC world. If Apple is doing it, will others follow?”

(Additional reporting by Faith Hung in TAIPEI, Lucy Hornby in BEIJING and Lee Chyen Yee in HONG KONG; Editing by Maureen Bavdek, Richard Chang and Ken Wills)

Tech News Headlines – Yahoo! News

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The X Factor Reveals Its Four Semi-Finalists

TV Watch

The X Factor

By Aaron Parsley

12/06/2012 at 09:20 PM EST

There were tears on The X Factor Thursday night.

With only four spots in next week's semi-finals, the six acts who performed two songs each Wednesday night were a tense bunch. Especially after last week's shocking elimination that sent home fan favorite Vino Alan.

A majority of PEOPLE.com readers picked Demi Lovato's only remaining contestant, CeCe Frey, as the singer who most deserved elimination. Was she able to make it through one more week? Keep reading for all the results ...

CeCe Frey was the first to go.

"I'm proud of everything that I've done on this show," she said. "I hope I've taught everyone at home that you need to love who you are, because the more you love who you are, the less you're going to need anybody else to."

Her coach tried to avoid tears but shed a few anyway. "I've grown so close to you," Demi said. "And I'm just so proud of you."

Three acts were then declare safe: Simon Cowell's boy band, Emblem3; Britney Spears's frontrunner, Carly Rose Sonenclar; and L.A. Reid's country singer, Tate Stevens, also a frontrunner.

That left Team Britney's Diamond White and Simon's other group, Fifth Harmony, to sing for survival.

Fifth Harmony sang Mariah Carey's "Anytime You Need a Friend," and Diamond sang Lee Ann Womack's "I Hope You Dance."

As expected, Simon and Britney voted to send home each other's acts. But it was the end of the road for Diamond, after L.A. and Demi both voted to send her home as well.

"I'm just thinking of Cher Lloyd right now," she said of the "Want U Back" singer. "She came in fifth and look where she is."

Here's how the top four ranked:
1. Tate Stevens
2. Carly Rose Sonenclar
3. Emblem3
4. Fifth Harmony

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Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

___(equals)

Johnson can be reached at https://twitter.com/GeneAPseattle

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Euro falls on grim economic outlook, U.S. data eyed

LONDON (Reuters) - The bleak outlook for the European economy knocked the euro and stalled gains the region's share markets on Friday, as investors waited to see if nonfarm payrolls data in the United States might affect its monetary policy plans.

A day after the European Central Bank cut its forecasts for growth across the 17-nation euro area next year, Germany's Bundesbank said there was a chance the region's debt crisis could send Europe's biggest economy into recession.

The euro dropped 0.25 percent to a low of $1.2932 after the Bundesbank statement, extending losses of over one percent seen on Thursday in reaction to the ECB's new forecasts which have heightened speculation of a early rate cut.

"It is unusual that a negative growth projection for the next year is offered before the end of the current year, but with such a view, markets are naturally pricing in an interest rate cut," said Daisuke Karakama, market economist for Mizuho Corporate Bank.

The main March 2013 German government bond futures contract, which had rallied sharply on the talk of an early ECB rate, was about 3 ticks lower at 145.66, with traders cutting back positions ahead of the U.S. jobs data.

European shares were fractionally higher in early trading, but mainly consolidating around the 18-month highs reached on Thursday on hopes of an improving economic performance in the global economy.

The FTSEurofirst 300 index <.fteu3> of top European shares traded up 0.2 percent at 1,133.95 points, with Germany's Dax <.gdaxi> up 0.1 percent after the Bundesbank's announcement.

London's FTSE 100 <.ftse>, and Paris's CAC-40 <.fchi> opened flat to slightly higher, while a slight dip in U.S. stock futures hinted at a cautious Wall Street open. <.l><.eu><.n/>

Investors are focused on U.S. non-farm payrolls data, which is expected to show an addition of 93,000 jobs in November, probably dented by superstorm Sandy, against October's gain of 171,000. The figures, due at 1330 GMT, are also likely to show the unemployment rate holding steady at 7.9 percent.

Federal reserve policymakers are scheduled to meet Dec 11-12 to review monetary policy.

Brent crude meanwhile was steady above $107 per barrel, but prices were headed for their biggest weekly loss in more than a month on the worries about the euro zone's economy and on-going concerns about the looming fiscal crisis in the United States, the world's top oil consumer.

Brent rose 0.1 percent to $107.14. while U.S. crude futures inched up 0.2 percent to $86.41 a barrel.

(Reporting by Richard Hubbard; editing by Philippa Fletcher)

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Tanks outside Egypt presidential palace, streets calmer

CAIRO (Reuters) - Egyptian army tanks deployed outside the presidential palace on Thursday in streets where supporters and opponents of President Mohamed Mursi had clashed into the early hours of the morning in violence that killed five people.

Armored troop carriers also moved into the roads around the palace, in what Egypt's state news agency said was a measure to secure the palace. The area had become a chaotic battleground between Mursi's Islamist backers and their opponents.

The soldiers' badges identified them as members of the Presidential Guard and Republican Guard, whose duties include guarding the presidency. At least five tanks and nine armored personnel carriers were seen near or around the palace.

The health ministry said five people had been killed and 350 wounded in bloodshed that has exacerbated the worst crisis since Mursi took office as Egypt's first president since a popular uprising overthrew Hosni Mubarak in February, 2011.

The military played a crucial role in ending Mubarak's 30-year rule by taking over from him to manage a transitional period, but it has stayed out of the latest crisis.

Mursi's opponents accuse him of seeking to create a new autocracy by awarding himself extraordinary powers in a decree on November 22 and were further angered when an Islamist-dominated assembly pushed through a draft constitution that opponents said did not properly represent the aspirations of the whole nation.

The president has defended his decree as necessary to prevent courts still full of judges appointed by Mubarak from derailing a constitution vital for Egypt's political transition.

Around the palace, traffic was moving through streets strewn with rocks thrown during violence in which petrol bombs and guns were also used. Hundreds of Mursi supporters were still in the area, many wrapped in blankets and some reading the Koran.

"We came here to support President Mursi and his decisions. He is the elected president of Egypt," said demonstrator Emad Abou Salem, 40. "He has legitimacy and nobody else does."

MUTUAL ACCUSATIONS

An opposition group called for more protests at the palace later on Thursday, setting the stage for further confrontation.

Mursi's opponents say the Muslim Brotherhood, the group that propelled the president to power in a June election, is behind the violence. The Brotherhood says the opposition is to blame and that the five dead were all Mursi supporters. The United States, worried about the stability of an Arab state which has a peace deal with Israel and which receives $1.3 billion in U.S. military aid, urged dialogue. Britain also called for restraint and an "inclusive" political process.

A presidential source said Mursi, silent in the last few days, was expected to make a statement later on Thursday.

Vice President Mahmoud Mekky proposed "personal ideas" for a negotiated way out on Wednesday, saying amendments to disputed articles in the constitution could be agreed with the opposition. A written agreement could then go to parliament, to be elected after a referendum on the constitution on December 15.

"There must be consensus," he told a news conference in the presidential palace as fighting raged outside on Wednesday. But the opposition stuck by its demand for Mursi to cancel the November 22 decree and postpone the referendum before any dialogue.

Protests spread to other cities, and offices of the Muslim Brotherhood's political party in Ismailia and Suez were torched.

But Mursi has shown no sign of buckling under pressure from protesters, confident that the Islamists, who have dominated both elections since Mubarak was overthrown, can win the referendum and parliamentary election to follow.

As well as relying on his Brotherhood power base, Mursi may also draw on a popular yearning for stability and economic revival after almost two years of political turmoil.

Opposition coordinator Mohamed ElBaradei said on Wednesday the street action and the polarization of society were pushing Egypt into violence and "could draw us to something worse".

The Egyptian pound plunged 4 percent on Thursday to its lowest level in eight years, after previously firming on hopes that a $4.8 billion IMF loan would stabilize the economy. The Egyptian stock market fell 4.4 percent after it opened.

(Additional reporting by Reuters TV; Tamim Elyan, Yasmine Saleh and Tom Perry, Writing by Edmund Blair and Tom Perry; Editing by Alistair Lyon and Giles Elgood)

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Apple’s shares swallow biggest loss in four years

NEW YORK/SAN FRANCISCO (Reuters) – Apple Inc shares tumbled more than 6 percent on Wednesday, chalking up their biggest single-day loss in four years as fears grow about intensifying competition in the mobile device market.

Investors and analysts blamed the sell-off on a mix of factors, including a forecast by an influential research firm that the iPad maker is continuing to cede ground to rival Google Inc’s Android gadgets, and unconfirmed reports that at least one major stock-clearing house was raising margin requirements on Apple stock trades.

Analysts also cited fears about a hike in the capital gains tax in 2013 in the event that ongoing Washington fiscal negotiations fail, as well as news that Nokia had beat Apple to the punch by striking a deal to sell its flagship Lumia through China Mobile, that country’s largest wireless carrier.

Wednesday’s drop rounded off a bleak 10 weeks for the most valuable U.S. company.

The stock was one of the day’s biggest percentage losers on the S&P 500, shedding $ 35 billion of market value as more than 37 million shares changed hands — blowing past the company’s average daily volume over 50 days of 21 million.

Apple‘s shares, once among the most desirable of portfolio holdings, have headed steadily lower since September on growing uncertainty about the company’s ability to fend off unprecedented competition. This year saw a surge in sales of Amazon.com Inc’s cheaper Kindle Fire and Microsoft Corp’s first foray into the tablet market with its Surface.

Meanwhile, Samsung Electronics continues to chip away at the iPad‘s dominance with its Galaxy line.

The assault on Apple‘s consumer-electronics home turf presents a stiff challenge for CEO Tim Cook, who was elevated shortly before the death of Silicon Valley legend Steve Jobs and is now charged with keeping the world’s largest technology company humming.

“This is not going to be a short-term trend. This is a management test, of how well they can perform without Steve Jobs,” said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. Referring to Apple‘s new iPad mini, which is only a smaller version of the existing iPad, Battle said the company needs “another home run” for shares to return to levels around $ 700.

“They need another new product that hits it out of the park. Without that, they could get a gradual grind-down in confidence,” he said.

On Wednesday, research firm International Data Corp said Apple most likely shed market share in the tablet computer space in 2012. Its worldwide tablet market share will slip to 53.8 percent in 2012 from 56.3 percent in 2011, while Android products would increase their share to 42.7 percent from 39.8 percent, IDC said.

Concerns that tax rates on dividends and capital gains may rise next year were also cited as contributing to the Apple sell-off.

The stock’s massive market value meant Apple was almost single-handedly responsible for Wednesday’s 1.1 percent decline in the Nasdaq 100 Index.

Apple is still up 33 percent this year, but is down nearly 24 percent from its record high of $ 705.07, hit on September 21. The stock slid more than 6.4 percent on Wednesday to close at $ 538.7923.

BEFUDDLING SLIDE

Some analysts were perplexed at the fall from favor in Apple stock, which has been a staple in almost all growth portfolios. The company is expected to deliver reliably high revenue and earnings expansion for years to come, and one in two tablets sold globally remains an iPad.

It is now gearing up for the introduction of its latest iPhone 5 and iPad mini in international markets. It will begin selling the iPhone 5 in 50 countries in December, including China and South Korea.

“Apple stock is significantly more volatile than its earnings and innovation stream,” said Daniel Ernst, analyst with Hudson Square Research. “And yet the wind blows slightly from the south instead of the east one particular morning, and the stock is down 6 percent.”

“It makes no sense. There are lines around the block for their products all around the world,” he added. “No other company has that.”

Separately, Nokia said it will partner with China Mobile, in a sales deal that will give the Finnish company an opportunity to win back Chinese market share from Apple‘s iPhone.

But some analysts continue to believe the dominant carrier in the world’s largest cellular market will eventually embrace the iPhone as well.

“China Mobile already carries multiple smartphones from multiple vendors. We continue to expect China Mobile to add the iPhone in the back half of 2013,” Piper Jaffray’s Gene Munster wrote in a research note.

While lines for the latest iPad model appeared lighter than usual when it hit stores in November, Apple said at the time that demand was so strong that it “practically sold out of iPad minis.” It sold 3 million of the new iPads — including the full-sized version — in the first three days on the market.

Some analysts suggested that investors also sold shares of Apple amid uncertainty over ongoing fiscal negotiations in Washington. If no agreement is reached on the issue, higher tax rates on dividends and capital gains are possible in 2013.

Investors who had hoped for a special dividend this year, as many other corporations have announced on expectations of higher tax rates next year, may be disappointed as time is running out.

“If you were expecting a special dividend by year end, that’s less likely to happen because its December 5,” said Colin Gillis, an analyst with BGC Partners.

The fear of higher taxes on capital gains also has prompted some investors to lock in profits now, particularly on a stock like Apple, which has posted gains of at least 25 percent for four consecutive years.

“Depending on what happens with the (U.S. fiscal negotiations), rates could rise next year or they could stay the same,” said Battle, of Performance Trust Capital. “They will not be lower, so if you’re an investor who has seen gains in Apple, it is better to take those gains this year rather than next.”

Tax selling “can take a life of its own,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

“Some taxable investors take the gains, that creates some negative momentum, institutional investors are heavily weighted the stock and reduce exposure.”

Some market participants also cited reports by media including CNBC, which Reuters could not confirm, that margin requirements on the trading of Apple stock had been raised by at least one clearing firm.

(Additional reporting by Charles Mikolajczak in New York and Doris Frankel in Chicago; Editing by Bernadette Baum, Andrew Hay, Leslie Adler and Ken Wills)

Gadgets News Headlines – Yahoo! News

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Frank Ocean, Taylor Swift Collect Grammy Nominations

12/06/2012 at 01:00 AM EST

How FUN!

The Grammys handed out their nominations Wednesday night at a concert in Nashville and there was a decidedly youthful feel: Taylor Swift earned a nod for record of the year and the band FUN joined Frank Ocean with the trifecta of album and record of the year and best new artist.

In the country categories, Blake Shelton is up against Carrie Underwood for best solo performance and Miranda Lambert was nominated for best album.

Here are some of the major nominations. For a complete list go to Grammy.com:

Album of the Year:
El Camino – The Black Keys
Some Nights– FUN.
Babel – Mumford & Sons
Channel Orange – Frank Ocean
Blunderbuss – Jack White

Record of the Year:
Lonely Boy – The Black Keys
Stronger (What Doesn't Kill You) – Kelly Clarkson
We Are Young – FUN. featuring Janelle Monáe
Somebody That I Used To Know – Gotye Featuring Kimbra
Thinkin Bout You – Frank Ocean
We Are Never Ever Getting Back Together – Taylor Swift

Best New Artist:
Alabama Shakes
FUN
Hunter Hayes
The Lumineers
Frank Ocean

Song Of The Year:
"The A Team" – Ed Sheeran, songwriter (Ed Sheeran)
"Adorn" – Miguel Pimentel, songwriter (Miguel)
"Call Me Maybe" – Tavish Crowe, Carly Rae Jepsen & Josh Ramsay, songwriters (Carly Rae Jepsen)
"Stronger (What Doesn't Kill You)" – Jörgen Elofsson, David Gamson, Greg Kurstin & Ali Tamposi, songwriters (Kelly Clarkson)
"We Are Young" – Jack Antonoff, Jeff Bhasker, Andrew Dost & Nate Ruess, songwriters (FUN. featuring Janelle Monáe)

Best Country Solo Performance:
"Home" – Dierks Bentley
"Springsteen" – Eric Church
"Cost Of Livin'" – Ronnie Dunn
"Wanted" – Hunter Hayes
"Over" – Blake Shelton
"Blown Away" – Carrie Underwood

Best Country Album:
Uncaged – Zac Brown Band
Hunter Hayes – Hunter Hayes
Living For A Song: A Tribute To Hank Cochran – Jamey Johnson
Four The Record– Miranda Lambert
The Time Jumpers – The Time Jumpers

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Study could spur wider use of prenatal gene tests

A new study sets the stage for wider use of gene testing in early pregnancy. Scanning the genes of a fetus reveals far more about potential health risks than current prenatal testing does, say researchers who compared both methods in thousands of pregnancies nationwide.

A surprisingly high number — 6 percent — of certain fetuses declared normal by conventional testing were found to have genetic abnormalities by gene scans, the study found. The gene flaws can cause anything from minor defects such as a club foot to more serious ones such as mental retardation, heart problems and fatal diseases.

"This isn't done just so people can terminate pregnancies," because many choose to continue them even if a problem is found, said Dr. Ronald Wapner, reproductive genetics chief at Columbia University Medical Center in New York. "We're better able to give lots and lots of women more information about what's causing the problem and what the prognosis is and what special care their child might need."

He led the federally funded study, published in Thursday's New England Journal of Medicine.

A second study in the journal found that gene testing could reveal the cause of most stillbirths, many of which remain a mystery now. That gives key information to couples agonizing over whether to try again.

The prenatal study of 4,400 women has long been awaited in the field, and could make gene testing a standard of care in cases where initial screening with an ultrasound exam suggests a structural defect in how the baby is developing, said Dr. Susan Klugman, director of reproductive genetics at New York's Montefiore Medical Center, which enrolled 300 women into the study.

"We can never guarantee the perfect baby but if they want everything done, this is a test that can tell a lot more," she said.

Many pregnant women are offered screening with an ultrasound exam or a blood test that can flag some common abnormalities such as Down syndrome, but these are not conclusive.

The next step is diagnostic testing on cells from the fetus obtained through amniocentesis, which is like a needle biopsy through the belly, or chorionic villus sampling, which snips a bit of the placenta. Doctors look at the sample under a microscope for breaks or extra copies of chromosomes that cause a dozen or so abnormalities.

The new study compared this eyeball method to scanning with gene chips that can spot hundreds of abnormalities and far smaller defects than what can be seen with a microscope. This costs $1,200 to $1,800 versus $600 to $1,000 for the visual exam.

In the study, both methods were used on fetal samples from 4,400 women around the country. Half of the moms were at higher risk because they were over 35. One-fifth had screening tests suggesting Down syndrome. One-fourth had ultrasounds suggesting structural abnormalities. Others sought screening for other reasons.

"Some did it for anxiety — they just wanted more information about their child," Wapner said.

Of women whose ultrasounds showed a possible structural defect but whose fetuses were called normal by the visual chromosome exam, gene testing found problems in 6 percent — one out of 17.

"That's a lot. That's huge," Klugman said.

Gene tests also found abnormalities in nearly 2 percent of cases where the mom was older or ultrasounds suggested a problem other than a structural defect.

Dr. Lorraine Dugoff, a University of Pennsylvania high-risk pregnancy specialist, wrote in an editorial in the journal that gene testing should become the standard of care when a structural problem is suggested by ultrasound. But its value may be incremental in other cases and offset by the 1.5 percent of cases where a gene abnormality of unknown significance is found.

In those cases, "a lot of couples might not be happy that they ordered that test" because it can't give a clear answer, she said.

Ana Zeletz, a former pediatric nurse from Hoboken, N.J., had one of those results during the study. An ultrasound suggested possible Down syndrome; gene testing ruled that out but showed an abnormality that could indicate kidney problems — or nothing.

"They give you this list of all the things that could possibly be wrong," Zeletz said. Her daughter, Jillian, now 2, had some urinary and kidney abnormalities that seem to have resolved, and has low muscle tone that caused her to start walking later than usual.

"I am very glad about it," she said of the testing, because she knows to watch her daughter for possible complications like gout. Without the testing, "we wouldn't know anything, we wouldn't know to watch for things that might come up," she said.

The other study involved 532 stillbirths — deaths of a fetus in the womb before delivery. Gene testing revealed the cause in 87 percent of cases versus 70 percent of cases analyzed by the visual chromosome inspection method. It also gave more information on specific genetic abnormalities that couples could use to estimate the odds that future pregnancies would bring those risks.

The study was led by Dr. Uma Reddy of the National Institute of Child Health and Human Development.

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Online:

Medical journal: http://www.nejm.org

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Dow, S&P rise, but Nasdaq sours with Apple in wild day

NEW YORK (Reuters) - A volatile trading session ended with U.S. stocks mostly higher on Wednesday, even as Apple, the most valuable company in the United States, suffered its worst day of losses in almost four years.

In a strange occurrence, Apple accounted for the entirety of the Nasdaq 100's <.ndx> fall of 1.1 percent, while the Dow industrials - which do not include Apple as a component - enjoyed the best day since November 28.

With the drop, Apple shed nearly $35 billion in market capitalization, its biggest one-day market-cap loss ever. The company's market value, or market capitalization, now stands at $506.85 billion.

"Today's move is because of index weightings, with the Nasdaq down because of Apple's decline," said Rex Macey, chief investment officer of Wilmington Trust in Atlanta. "The S&P is up because Apple isn't as big a weight in that index, and the Dow is up even more because it isn't there at all."

The broad market seesawed, with the S&P 500 dropping into negative territory before it rebounded off the 1,400 level, seen as a key support point over the past two weeks. Investors cited comments from President Barack Obama suggesting a potential near-term resolution to the "fiscal cliff" wrangling in Washington as a catalyst for the rebound.

Shares of The Travelers Cos Inc rose 4.9 percent to $74. The stock ranked as the Dow's top percentage gainer after the insurance company said it intended to resume stock buybacks it had temporarily suspended while it assessed its exposure to Superstorm Sandy. The company also said a preliminary estimate of net losses from Sandy was about $650 million after tax.

The Dow Jones industrial average <.dji> rose 82.71 points, or 0.64 percent, to 13,034.49 at the close. The Standard & Poor's 500 Index <.spx> gained 2.23 points, or 0.16 percent, to 1,409.28. But the Nasdaq Composite Index <.ixic> fell 22.99 points, or 0.77 percent, to end at 2,973.70.

Apple, the largest U.S. company by market capitalization and a big weight in both the S&P 500 and the Nasdaq, fell 6.4 percent to $538.79. Apple is down more than 20 percent from an all-time high reached in late September, putting the stock into bear market territory.

Banking shares were led higher by a 6.3 percent jump in Citigroup to $36.46 after the company said it would cut 4 percent of its workforce. The S&P financial sector index <.gspf> climbed 1.3 percent, and Bank of America hit a 52-week high of $10.55 before pulling back slightly. The stock, a Dow component, ended at $10.46, up 5.7 percent for the day.

Cyclical sectors, which are tied to the pace of economic growth, rallied on optimism about progress on a solution to avoid the fiscal cliff. An S&P index of industrial stocks <.gspi> rose 1.1 percent, buoyed by Caterpillar Inc , up 2.2 percent at $86.05, while an S&P index of energy shares <.gspe> climbed 0.7 percent. The Dow Jones Transportation Average <.djt> gained 0.9 percent, with CSX Corp jumping 2.7 percent to $20.16.

Still, Apple struggled throughout the session. Market participants cited a host of reasons for the drop in the iPad maker's stock, including a consultant's report about the company losing share in the tablet market and reports that margin requirements had been raised by at least one clearing firm, as well as year-end tax selling ahead of a possible rise in capital-gains tax rates next year.

On the Washington front, Obama told the Business Roundtable, a group of chief executives, on Wednesday that a fiscal cliff deal was possible "in about a week" if Republicans acknowledged the need to raise taxes on the wealthiest Americans.

Equities have struggled to gain ground recently because of concerns over the fiscal cliff - a series of mandatory spending cuts and tax increases effective in early January that could push the U.S. economy into recession next year. Recently equities have moved on any whiffs of sentiment from Washington in headlines about negotiations.

"Obama's comments generated a lot of optimism, but to the extent the market believes them, that's how much we're setting ourselves up for a decline if that deadline passes with no progress," said Macey, who helps oversee about $20 billion in assets.

In an interview on CNBC after the market closed, U.S. Treasury Secretary Tim Geithner said that uncertainty over the fiscal cliff was standing in the way of stronger economic growth, and that there was no prospect for an agreement if tax rates didn't rise on the wealthiest taxpayers.

The stock of Freeport-McMoRan Copper & Gold Inc fell 16 percent to $32.17 and ranked as the S&P 500's biggest percentage decliner. The company said it was acquiring Plains Exploration & Production Co and McMoRan Exploration Co in two separate deals for $9 billion in cash and stock in a major expansion into energy.

McMoRan Exploration soared 87 percent to $15.82 and Plains surged 23.4 percent to $44.50.

About half of the stocks traded on the New York Stock Exchange closed in positive territory, while about 54 percent of Nasdaq-listed shares ended lower.

Volume was higher than it has been in recent sessions, with about 6.93 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, above the daily average so far this year of about 6.48 billion shares.

(Editing by Jan Paschal)

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