Wall Street little changed before next "cliff" signal

NEW YORK (Reuters) - Stocks were little changed on Tuesday as the market awaited developments in negotiations in Washington to avert a "fiscal cliff" that could push the U.S. economy into recession.

Republicans in Congress proposed steep spending cuts to bring down the budget deficit on Monday but gave no ground on President Barack Obama's call to raise taxes on the wealthiest Americans, and the proposal was quickly dismissed by the White House.

The market has been subject to swings in reaction to the proposals floated so far by politicians. Still, many investors expect the two sides to come up with a deal before the year-end deadline, which could trigger a rally in equities.

"Investors everywhere are focused on what is happening here related to the fiscal cliff and the risk that nothing will happen," said Gail Dudack, Chief Investment Strategist, Dudack Research Group in New York.

"From what I have seen, there is a consensus that something will happen. Maybe if it is not ideal, something will happen."

Differences within the Republican Party over how to engage with the Democrats came to the fore on Tuesday as one senator opposed to raising taxes lashed out at House Speaker and fellow Republican John Boehner for proposing to increase revenue by closing some tax loopholes.

Despite the sudden moves in the market, a measure of investor anxiety has held surprisingly flat.

The CBOE volatility index <.vix>, a gauge of market anxiety, was at 17 but has not traded above 20 since July following its 2012 high near 28 hit in June. The VIX's 10-day Average True Range, an internal volatility measure, is at its lowest since early 2007.

Obama will meet with U.S. governors at the White House on Tuesday to talk about the fiscal cliff, a $600 billion package of tax hikes and federal spending cuts that would begin January 1.

The president is also expected to talk about the fiscal cliff during an interview scheduled for 12:30 p.m. (1730 GMT) on Bloomberg TV.

Coach became the latest company to advance the date of its next dividend payment. Expectations of higher taxes on dividends kicking in in 2013 have pushed many companies to pay special dividends this year or advance their next pay-back to investors. Shares of the upscale leather-goods maker shed 1.6 percent to $57.25.

The Dow Jones industrial average <.dji> rose 27.92 points, or 0.22 percent, to 12,993.52. The S&P 500 <.spx> edged up 0.44 points, or 0.03 percent, to 1,409.90. The Nasdaq Composite <.ixic> fell 4.44 points, or 0.15 percent, to 2,997.76.

Darden Restaurants Inc plunged 10.1 percent to $47.14 as the worst performer on the S&P 500 after warning its latest quarter would miss expectations after unsuccessful promotions led to a decline in sales at its Olive Garden, Red Lobster and LongHorn Steakhouse chains.

In contrast, Big Lots Inc jumped 8 percent to $30.28 after the close-out retailer posted a smaller-than-expected loss and boosted its full-year adjusted earnings forecast.

Toll Brothers shares advanced 0.3 percent to $32.53 after the largest U.S. luxury homebuilder reported a higher quarterly profit and said new orders rose sharply.

MetroPCS Communications shares dropped 6.5 percent to $10.07 after Sprint Nextel appeared unlikely to make a counter-offer for the wireless service provider.

Shares of Pep Boys-Manny Moe and Jack slumped 12.5 percent at $9.34 a day after the release of the auto parts retailer's results.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)

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David Oliver Relin, Co-Author of ‘Three Cups of Tea,’ Dies at 49

David Oliver Relin, a journalist and adventurer who achieved acclaim as co-author of the best seller “Three Cups of Tea” (2006) and then suffered emotionally and financially as basic facts in the book were called into question, died Nov. 15 in Multnomah County, Ore. He was 49.

David Oliver Relin was a co-author of “Three Cups of Tea.”

Some readers questioned details in the best-selling book, "Three Cups of Tea."

His family said Mr. Relin “suffered from depression” and took his own life. The family, speaking through Mr. Relin’s agent, Jin Auh, was unwilling to give further details, but said a police statement would be released this week.

In the 1990s, Mr. Relin established himself as a journalist with an interest in telling “humanitarian” stories about people in need in articles about child soldiers and about his travels in Vietnam.

“He felt his causes passionately,” said Lee Kravitz, the former editor of Parade who hired Mr. Relin at various magazines over the years. “He especially cared about young people. I always assigned him to stories that would inspire people to take action to improve their lives.”

So it made sense when Viking books tapped him to write a book about Greg Mortenson, a mountain climber who had an inspiring story about building schools in Pakistan and Afghanistan.

Elizabeth Kaplan, the agent for the book, acknowledged that the relationship between the two men was difficult from the start. Mr. Mortenson, who was traveling to remote areas, could be hard to track down, and Mr. Relin spoke publicly about how Mr. Mortenson should not have been named a co-author. Still, the book was a huge success, selling more than four million copies.

Some readers, however, found details of the heartwarming tale suspicious. In 2011, the CBS News program “60 Minutes” and the best-selling author Jon Krakauer in an e-book called “Three Cups of Deceit” questioned major points in the book. This included a crucial opening anecdote about Mr. Mortenson’s being rescued by the townspeople of Korphe, Pakistan, after stumbling down a mountain when he was dehydrated and exhausted. It was their care and concern, the book said, that inspired Mr. Mortenson to build schools.

The reports also said some of the schools that Mr. Mortenson’s charity, the Central Asia Institute, said it had established either did not exist or were built by others. There were also charges that the institute had been mismanaging funds and that a substantial portion of the money it raised had been used to promote the book, not for schools.

Mr. Mortenson acknowledged that some of the details in the book were wrong. Mr. Relin did not speak publicly about the charges, but he hired a lawyer to defend himself in a federal lawsuit that accused the authors and the publisher of defrauding readers. The suit was dismissed this year.

In April, the Montana Attorney General’s office announced that Mr. Mortenson had agreed to repay the charity more than $1 million in travel and other expenses used to promote the book, including “inappropriate personal charges.”

David Oliver Relin was born on Dec. 12, 1962, in Rochester to Lloyd and Marjorie Relin. His father died when he was young. Mr. Relin graduated from Vassar College in 1985, and was later awarded a fellowship at the Iowa Writers’ Workshop.

In addition to his mother, he is survived by his wife, Dawn; his stepfather, Cary Ratcliff; and his sisters Rachel Relin and Jennifer Cherelin.

Mr. Relin had completed a new book on two doctors working to cure cataract-related blindness in the developing world. It is scheduled for publication by Random House in spring 2013.

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Nokia Siemens to sell optical networks unit

FRANKFURT (Reuters) – Mobile telecoms equipment joint venture Nokia Siemens Networks, which is focusing on its core business, is to sell its optical fiber unit to Marlin Equity Partners for an undisclosed sum.

Up to 1,900 employees, mainly in Germany and Portugal, will be transferred to the new company, NSN said on Monday.

The company, owned by Nokia and Siemens, has sold a number of product lines since it last year announced plans to divest non-core assets and cut 17,000 jobs, nearly a quarter of its total workforce.

Nordea Markets analyst Sami Sarkamies said he expected more divestments after the optical unit deal. This disposal was a small surprise, he said, because NSN needed some optical technology – where data is transmitted by pulses of light – for its main mobile broadband business.

The move may hint the company is preparing itself for further consolidation in the sector by cutting overlaps with other players, Sarkamies said.

The telecom equipment market is going through rough times with stiff competition. French Alcatel-Lucent is also cutting costs.

($ 1 = 0.7689 euro)

(Reporting by Harro ten Wold; Editing by Greg Mahlich and Dan Lalor)

Tech News Headlines – Yahoo! News

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Alison Eastwood Is Engaged

12/03/2012 at 01:45 PM EST

Stacy Poitras and Alison Eastwood

Vivien Killilea/FilmMagic

There's more excitement for Clint Eastwood!

Fresh off the heels of Friday's news that his daughter Francesca Eastwood was named Miss Golden Globe 2013, one of his other daughters, Alison Eastwood, 40, is ready to go public with the longtime engagement to her Chainsaw Gang costar Stacy Poitras.

"I actually asked for [Clint's] permission three years ago at a Thanksgiving dinner in Pebble Beach that was attended by Alison's mom Maggie [Johnson], too," Poitras tells Celebuzz.

Having been with Alison for five years, Poitras calls himself "the luckiest guy in the world," to be engaged to "an angel."

As for a reaction from the Academy Award winner, 82, "Clint is a cool guy ... but he’s definitely a man of few words," Poitras says. "I quietly asked him when we were alone if it would be all right if I asked for his daughter's hand in marriage. He coolly looked me in the eye and softly said, 'You better take that up with her,' to which I replied, 'So, I have your permission?' And he said, 'Yes.' "

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US flu season starts early, could be bad, CDC says

NEW YORK (AP) — Health officials say flu season is off to its earliest start in nearly 10 years — and it could be a bad one.

The primary strain circulating is one that tends to cause more severe illness, especially in the elderly.

But officials with the Centers for Disease Control and Prevention said the nation seems to be fairly well prepared. More than a third of Americans have been vaccinated, and the vaccine is well matched to the strains of flu so far.

Officials said Monday that suspected flu cases have jumped in five southern states — Alabama, Louisiana, Mississippi, Tennessee and Texas. An uptick in flu reports like this usually doesn't occur until after Christmas.

The last time a typical flu season started this early was the winter of 2003-04.

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Wall Street turns flat as U.S. factory data offsets China

NEW YORK (Reuters) - Stocks barely budged on Monday, with the S&P 500 and Nasdaq trimming early gains as disappointing U.S. factory numbers dented optimism spurred by positive data on China's economy.

Output by China's factories grew in November for the first time in more than a year, data showed. But that encouraging signal about the health of the world's second-largest economy was offset by a surprising contraction in U.S. manufacturing, which fell in November to its lowest level in more than three years, according to the Institute for Supply Management.

The market's reaction to the ISM data was somewhat muted, however, as concerns about budget dealings in Washington on the "fiscal cliff" remain the primary focus of investors. Political haggling continues over how to deal with large automatic spending cuts and tax hikes scheduled to kick in next year that could tip the U.S. economy back into recession.

"At this point, all you can say about the data is they are discounting it," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

"So barring some catastrophe here in terms of the fiscal cliff, we look pretty stable."

Among other factors serving to offset the ISM report were two developments in the euro zone: Spain formally requested the disbursement of more than $50 billion of European funds to recapitalize its crippled banking sector, while Greece said it would spend 10 billion euros ($13 billion) to buy back bonds in a bid to reduce its ballooning debt.

The PHLX Europe sector index <.xex> advanced 0.6 percent.

"The general feeling underneath here is things are improving - Europe appears to be improving, at least politically getting their act together," Mendelsohn said.

The Dow Jones industrial average <.dji> shed 10.45 points, or 0.08 percent, to 13,015.13. The Standard & Poor's 500 Index <.spx> inched up just 0.62 of a point, or 0.04 pct to 1,417.80. The Nasdaq Composite Index <.ixic> added 3.68 points, or 0.12 percent, to 3,013.92.

The S&P 500 briefly moved above its 50-day moving average at about 1,420, a level that the index has been below since October 22, and now serving as a key resistance point for equities.

U.S. Treasury Secretary Timothy Geithner pushed Republicans on Sunday to offer specific ideas to cut the deficit and predicted that they would agree to raise tax rates on the rich to obtain a year-end deal to avoid the fiscal cliff.

Dell shares rose 5.8 percent to $10.19 as one of the biggest percentage gainers in both the S&P 500 and Nasdaq 100 <.ndx> after Goldman Sachs upgraded its view on the stock to "buy" from "sell."

Singapore Airlines said it was in talks with interested parties to sell its 49 percent stake in British carrier Virgin Atlantic, with sources saying that Delta Air Lines was among the potential suitors. Delta shares fell 1.8 percent to $9.82.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Jan Paschal)

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Taliban Bombers Attack Air Base in Afghanistan

KABUL, Afghanistan — Taliban forces attacked a large coalition airfield in eastern Afghanistan early Sunday, detonating three car bombs near the entrance and engaging in a two-hour gun battle that killed nine insurgents, four Afghan guards and at least four civilians whose vehicle was caught in the cross-fire, Afghan officials and witnesses said.

Noorullah Shirzada/Agence France-Presse — Getty Images

Taliban attackers detonated three car bombs near the entrance of a coalition airbase in eastern Afghanistan on Sunday.

Disguised in coalition military uniforms, the Taliban fighters attempted to enter the airfield, known as Forward Operating Base Fenty, after the initial explosions, which occurred just before 6 a.m., but were repelled by firepower that included helicopter gunships, officials said. Fewer than 10 coalition service members were wounded, according to official reports, though by late Sunday it remained unclear exactly how many had been hurt, and how severely. At least one of the guards killed in the fighting was a member of the Afghan military.

The Taliban quickly claimed responsibility for the operation, saying it had killed “tens” of foreign forces, though the insurgents routinely overstate the deadliness of their attacks.

But the coordinated assault, which left the entry to the base strewn with the remains of the bombers, was a potent reminder of the Taliban’s determination to continue the fight. As the coalition forces wind down the 11-year war, and with Western combat troops already withdrawing, the attacks serve as a reminder that the Taliban are not going anywhere — and that their firepower remains undiminished. How successful the nation’s defenses will be after the 2014 withdrawal of coalition forces is a question on the minds of many Afghans.

Forward Operating Base Fenty is primarily run by American and is one of the larger airfields in eastern Afghanistan. Like other large coalition bases, Fenty has been attacked before, including in February, when a suicide blast killed nine Afghans. The assaults have, in most cases, been repulsed before the insurgents could fight their way inside bases, and coalition casualties have been minimal, as appears to have been the case on Sunday.

But the Afghans who work or live near the base have not been so fortunate. Afghan officials said that two of the civilians killed were doctors, their car riddled by gunfire about 50 yards from the base. The doctors had been on their way to work in Jalalabad, the capital of Nangarhar Province, said Hajji Niamatullah Khan, the district governor of Behsood. In addition, at least three private security guards on duty at the outer perimeter were killed, he said.

Coalition forces had few details about the extent of the damage from the Taliban assault.

Zabiullah Mujahid, a Taliban spokesman, said medical evacuation helicopters could be seen ferrying dead and wounded American soldiers from the scene, “which shows that heavy casualties were inflicted” by the attackers.

He also claimed that a Toyota sport utility vehicle packed with explosives had leveled one of the guard towers. He said that some of the attackers were wearing “foreign” military uniforms, a tactic that the Taliban have employed in previous assaults on coalition bases. An official from the American-led coalition confirmed that at least some of the attackers wore coalition uniforms.

The last major assault against a coalition base was in September, when the Taliban blew up eight Harrier attack jets and killed two Marines at Camp Bastion in Helmand Province. The militants, wearing American Army uniforms, caused more than $200 million in damage in that attack.

Sharifullah Sahak contributed reporting.

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Larry Hagman, Boy Meets World Re-Boot Get Top Reactions This Week

12/02/2012 at 12:25 PM EST

Danielle Fishel and Ben Savage; Larry Hagman

Everett, Hulton Archive/Getty

It was a post-Thanksgiving week of delightful highs and solemn lows. From the passing of favorite actors to confusion over the recent Two and a Half Men drama, this week's stories left you experiencing a whirlwind of emotions on PEOPLE.com.

As always, you've been reacting in droves, telling us what you love, what makes you mad and what leaves you to LOL.

Check out the stories with top reactions on the site this week, and keep clicking on the emoticons at the bottom of every story to tell us what you think!

Nostalgic readers loved the promise of a Boy Meets World spinoff getting the green light. Fans of the original show were thrilled to see that Ben Savage and Danielle Fishel will film for the Girl Meets World pilot.

The entertainment world lost some beloved members this week. Larry Hagman, best known as J.R. Ewing on Dallas, lost his battle with throat cancer at 81. Deborah Raffin of 7th Heaven also succumbed to leukemia at 59.

Celebrities are often ridiculed for giving their children bizarre names, but the Jameson family may have outdone them all by naming their baby girl "Hashtag". You agreed: Leave social media terms to the Internet.

Readers weren't sure what to make of Angus T. Jones's shocking rant about his show, Two and a Half Men. By calling the CBS sitcom "filth," and urging viewers to stop watching, Jones is said to be remaining with the program.

News of Demi Moore's new beau had readers snickering. But Moore, who is no stranger to dating younger men, seems to have no issue with dating 26-year-old art dealer Vito Schnabel.

Check back next week for another must-read roundup, and see what readers are reacting to every day here.

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Asperger's dropped from revised diagnosis manual

CHICAGO (AP) — The now familiar term "Asperger's disorder" is being dropped. And abnormally bad and frequent temper tantrums will be given a scientific-sounding diagnosis called DMDD. But "dyslexia" and other learning disorders remain.

The revisions come in the first major rewrite in nearly 20 years of the diagnostic guide used by the nation's psychiatrists. Changes were approved Saturday.

Full details of all the revisions will come next May when the American Psychiatric Association's new diagnostic manual is published, but the impact will be huge, affecting millions of children and adults worldwide. The manual also is important for the insurance industry in deciding what treatment to pay for, and it helps schools decide how to allot special education.

This diagnostic guide "defines what constellations of symptoms" doctors recognize as mental disorders, said Dr. Mark Olfson, a Columbia University psychiatry professor. More important, he said, it "shapes who will receive what treatment. Even seemingly subtle changes to the criteria can have substantial effects on patterns of care."

Olfson was not involved in the revision process. The changes were approved Saturday in suburban Washington, D.C., by the psychiatric association's board of trustees.

The aim is not to expand the number of people diagnosed with mental illness, but to ensure that affected children and adults are more accurately diagnosed so they can get the most appropriate treatment, said Dr. David Kupfer. He chaired the task force in charge of revising the manual and is a psychiatry professor at the University of Pittsburgh.

One of the most hotly argued changes was how to define the various ranges of autism. Some advocates opposed the idea of dropping the specific diagnosis for Asperger's disorder. People with that disorder often have high intelligence and vast knowledge on narrow subjects but lack social skills. Some who have the condition embrace their quirkiness and vow to continue to use the label.

And some Asperger's families opposed any change, fearing their kids would lose a diagnosis and no longer be eligible for special services.

But the revision will not affect their education services, experts say.

The new manual adds the term "autism spectrum disorder," which already is used by many experts in the field. Asperger's disorder will be dropped and incorporated under that umbrella diagnosis. The new category will include kids with severe autism, who often don't talk or interact, as well as those with milder forms.

Kelli Gibson of Battle Creek, Mich., who has four sons with various forms of autism, said Saturday she welcomes the change. Her boys all had different labels in the old diagnostic manual, including a 14-year-old with Asperger's.

"To give it separate names never made sense to me," Gibson said. "To me, my children all had autism."

Three of her boys receive special education services in public school; the fourth is enrolled in a school for disabled children. The new autism diagnosis won't affect those services, Gibson said. She also has a 3-year-old daughter without autism.

People with dyslexia also were closely watching for the new updated doctors' guide. Many with the reading disorder did not want their diagnosis to be dropped. And it won't be. Instead, the new manual will have a broader learning disorder category to cover several conditions including dyslexia, which causes difficulty understanding letters and recognizing written words.

The trustees on Saturday made the final decision on what proposals made the cut; recommendations came from experts in several work groups assigned to evaluate different mental illnesses.

The revised guidebook "represents a significant step forward for the field. It will improve our ability to accurately diagnose psychiatric disorders," Dr. David Fassler, the group's treasurer and a University of Vermont psychiatry professor, said after the vote.

The shorthand name for the new edition, the organization's fifth revision of the Diagnostic and Statistical Manual, is DSM-5. Group leaders said specifics won't be disclosed until the manual is published but they confirmed some changes. A 2000 edition of the manual made minor changes but the last major edition was published in 1994.

Olfson said the manual "seeks to capture the current state of knowledge of psychiatric disorders. Since 2000 ... there have been important advances in our understanding of the nature of psychiatric disorders."

Catherine Lord, an autism expert at Weill Cornell Medical College in New York who was on the psychiatric group's autism task force, said anyone who met criteria for Asperger's in the old manual would be included in the new diagnosis.

One reason for the change is that some states and school systems don't provide services for children and adults with Asperger's, or provide fewer services than those given an autism diagnosis, she said.

Autism researcher Geraldine Dawson, chief science officer for the advocacy group Autism Speaks, said small studies have suggested the new criteria will be effective. But she said it will be crucial to monitor so that children don't lose services.

Other changes include:

—A new diagnosis for severe recurrent temper tantrums — disruptive mood dysregulation disorder. Critics say it will medicalize kids' who have normal tantrums. Supporters say it will address concerns about too many kids being misdiagnosed with bipolar disorder and treated with powerful psychiatric drugs. Bipolar disorder involves sharp mood swings and affected children are sometimes very irritable or have explosive tantrums.

—Eliminating the term "gender identity disorder." It has been used for children or adults who strongly believe that they were born the wrong gender. But many activists believe the condition isn't a disorder and say calling it one is stigmatizing. The term would be replaced with "gender dysphoria," which means emotional distress over one's gender. Supporters equated the change with removing homosexuality as a mental illness in the diagnostic manual, which happened decades ago.

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner .

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Cliff fight may knock out December rally

NEW YORK (Reuters) - In normal times, next week's slew of U.S. economic data could be a springboard for a December rally in the stock market.

December is historically a strong month for markets. The S&P 500 has risen 16 times in the past 20 years during the month.

But the market hasn't been operating under normal circumstances since November 7 when a day after the U.S. election, investors' focus shifted squarely to the looming "fiscal cliff."

Investors are increasingly nervous about the ability of lawmakers to undo the $600 billion in tax increases and spending cuts that are set to begin in January; those changes, if they go into effect, could send the U.S. economy into a recession.

A string of economic indicators next week, which includes a key reading of the manufacturing sector on Monday, culminates with the November jobs report on Friday.

But the impact of those economic reports could be muted. Distortions in the data caused by Superstorm Sandy are discounted.

The spotlight will be more firmly on signs from Washington that politicians can settle their differences on how to avoid the fiscal cliff.

"We have a week with a lot of economic data, and obviously most of the economic data is going to reflect the effects of Sandy, and that might be a little bit negative for the market next week, but most of that is already expected - the main focus remains the fiscal cliff," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

Concerns about the cliff sent the S&P 500 <.spx> into a two-week decline after the elections, dropping as much as 5.3 percent, only to rally back nearly 4 percent as the initial tone of talks offered hope that a compromise could be reached and investors snapped up stocks that were viewed as undervalued.

On Wednesday, the S&P 500 gained more than 20 points from its intraday low after House Speaker John Boehner said he was optimistic that a budget deal to avoid big spending cuts and tax hikes could be worked out. The next day, more pessimistic comments from Boehner, an Ohio Republican, briefly wiped out the day's gains in stocks.

On Friday, the sharp divide between the Democrats and the Republicans on taxes and spending was evident in comments from President Barack Obama, who favors raising taxes on the wealthy, and Boehner, the top Republican in Congress, who said Obama's plan was the wrong approach and declared that the talks had reached a stalemate.

"It's unusual to end up with one variable in this industry, it's unusual to have a single bullet that is the causal factor effect, and you are sitting here for the next maybe two weeks or more, on that kind of condition," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago.

"And that is what is grabbing the markets."

BE CONTRARY AND MAKE MERRY

But investor attitudes and seasonality could also help spur a rally for the final month of the year.

The most recent survey by the American Association of Individual Investors reflected investor caution about the cliff. Although bullish sentiment rose above 40 percent for the first time since August 23, bearish sentiment remained above its historical average of 30.5 percent for the 14th straight week.

December is a critical month for retailers such as Target Corp and Macy's Inc . They saw monthly retail sales results dented by Sandy, although the start of the holiday shopping season fared better.

With consumer spending making up roughly 70 percent of the U.S. economy, a solid showing for retailers during the holiday season could help fuel any gains.

Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, believes the recent drop after the election could be a market bottom, with sentiment leaving stocks poised for a December rally.

"The concerns on the fiscal cliff - as valid as they might be - could be overblown. When you look at a lot of the overriding sentiment, that has gotten extremely negative," said Detrick.

"From that contrarian point of view with the historically bullish time frame of December, we once again could be setting ourselves up for a pretty nice end-of-year rally, based on lowered expectations."

SOME FEEL THE BIG CHILL

Others view the fiscal cliff as such an unusual event that any historical comparisons should be thrown out the window, with a rally unlikely because of a lack of confidence in Washington to reach an agreement and the economic hit caused by Sandy.

"History doesn't matter. You're dealing with an extraordinary set of circumstances that could very well end up in the U.S. economy going into a recession," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

"And the likelihood of that is exclusively in the hands of our elected officials in Washington. They could absolutely drag us into a completely voluntary recession."

(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: charles.mikolajczak(at)thomsonreuters.com )

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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