Data, eBay earnings lift Wall Street to five-year high

NEW YORK (Reuters) - Wall Street rose on Thursday, with the S&P 500 climbing to a five-year intraday high, on improved housing and jobs data along with better-than-expected results from online marketplace eBay .

The data showed the number of Americans filing new claims for unemployment benefits fell to a five-year low last week, while groundbreaking for homes rose to the fastest pace in four years last month.

Strength in the housing and labor markets is key to sustained growth and higher corporate profits. Job market improvement helps stimulate consumer spending while a recovery in housing means more purchases of appliances, furniture and other household goods as well as a source of employment.

"The real estate numbers all look good, sales looked good, prices looked good, housing starts looked good," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

"The only thing that still doesn't look really good in my mind are the employment numbers but even the claims were pretty good and inflation seems to be nonexistent so what's to stop the party from going?"

The Dow Jones industrial average <.dji> gained 82.97 points, or 0.61 percent, to 13,594.20. The Standard & Poor's 500 Index <.spx> advanced 8.31 points, or 0.56 percent, to 1,480.94. The Nasdaq Composite Index <.ixic> rose 17.12 points, or 0.55 percent, to 3,134.66.

PulteGroup Inc shares gained 4.9 percent to $20.29 and Toll Brothers Inc advanced 2.2 percent to $35.68. The PHLX housing sector index <.hgx> climbed 2.1 percent.

EBay's shares rose 3 percent to $54.47 a day after it reported holiday quarter results that just beat Wall Street expectations. It gave a 2013 forecast that was within analysts' estimates.

The S&P is on track for its third consecutive advance, which pushed the index above an intraday peak set in September to its highest since December 2007.

But gains were tempered by weakness in the financial sector, with Bank of America down 4.3 percent to $11.27 and Citigroup off 3 percent to $41.22 after they posted their results.

Bank of America's fourth-quarter profit fell as it took more charges to clean up mortgage-related problems. Citigroup posted $2.32 billion of charges for layoffs and lawsuits, while its new chief executive cautioned the bank needed more time to deal with its problems.

The S&P financial sector index <.spsy> slipped 0.14 percent as the only one of the 10 major S&P sectors to decline.

S&P 500 corporate earnings for the fourth quarter are expected to rise 2.3 percent, Thomson Reuters data showed. Expectations for the quarter have fallen considerably since October when a 9.9 percent gain was estimated.

With investors anticipating the current earnings season to be lackluster, their focus will be on the corporate earnings outlook for the months ahead, analysts said.

Shares of Boeing extended recent declines after the United States and other countries grounded the company's new 787 Dreamliner after a second incident involving battery failure. Boeing shed 0.4 percent to $74.05 and is down 1.5 percent for the week so far.

Market breadth was solid, with advancers outpacing decliners on the New York Stock Exchange 2,234 to 650, while on the Nasdaq the ratio was 1,602 to 762 in favor of advancing stocks.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)

Read More..

Islamists Seize Foreign Hostages at Algeria Gas Field

PARIS — Islamist militants seized a foreign-operated gas field in Algeria early Wednesday and took at least 20 foreign hostages, including Americans, according to an Algerian government official and the country’s state-run news agency, in what the attackers called a retaliation for the French-led military intervention in neighboring Mali.

The Algerian agency said at least at least two people had been killed in the gas-field seizure, including one British national, and that the hostages included American, British, French, Norwegian and Japanese citizens.

Victoria Nuland, a State Department spokeswoman, told reporters in Washington, “The best information that we have at this time is that U.S. citizens are among the hostages.”

The exact number of people being held was still far from certain. A top Algerian government official said that security services had now “encircled the base” so that “no one can leave.” But he added that “the situation is confused for the moment. We don’t have precise figures for now. Maybe 30” hostages in all.

As for the attackers, he said, “There were 20 of them, in three vehicles, heavily armed. They came in vehicles that were unmarked, that’s how they slipped through.”

Other news agencies said as many as 41 hostages were seized.

The attack on the gas field appeared to be the first retribution by the Islamists for the French armed intervention in Mali last week, potentially broadening the conflict beyond Mali’s borders and raising the possibility of drawing an increasing number of foreign countries directly into the conflict.

The attack occurred at the In Amenas gas field, the fourth largest gas development in Algeria, and at the In Amenas gas compression plant, which is operated by BP, the Norwegian company Statoil and the Algerian national oil company Sonatrach.

Bard Glad Pedersen, a Statoil spokesman, said that of 17 Statoil employees working in the field, only four were able to safely escape to a nearby Algerian military camp. “There is a hostage situation,” he said. “We do not provide further information how we are dealing with the situation. Our main priority is the safety of our colleagues.”

All told, up to 40 workers could be held hostage, according to oil company officials. A Japanese official confirmed that Japanese nationals were involved, and the Irish Foreign Ministry said one Irish citizen had been kidnapped.

The Sahara Media Agency of Mauritania, quoting what it described as a spokesman for the militants, said they were holding five hostages in a production facility on the site and 36 others in a housing area, and that there were as many as 400 Algerian soldiers surrounding the operation. But that information could not be confirmed, and the agency’s report on the specifics of where the hostages were held raised questions about its credibility.

Fighters with links to Al Qaeda’s African affiliate, Al Qaeda in the Islamic Maghreb, claimed responsibility for the attack, according to both Mauritanian and Algerian news agencies. They quoted militants claiming that the kidnappings were a response to the Algerian government’s decision to allow France to use its airspace to conduct strikes against Islamists in Mali.

Islamist groups and bandits have long operated in the deserts of western Africa, and a collection of Islamists have occupied the vast expanse of northern Mali since last year. In retaliation for the French-led effort to drive them out, those groups, including Al Qaeda in the Islamic Maghreb, have pledged to strike against France’s interests on the continent and abroad, as well as those of nations backing the French operations. In France, security has been reinforced at airports, train stations and other public spaces.

The militant groups are financed in large part through ransoms paid for the freeing of Western hostages, and regular kidnappings have occurred in the West African desert in recent years. Seven French nationals are presently being held there.

The attack on Wednesday was carried out by a “heavily armed” group of “terrorists” traveling aboard three vehicles, the Algeria Interior Ministry statement said, and targeted a bus transporting foreign workers to a nearby airport at 5 a.m.

Algeria, which shares a desert border of several hundred miles with Mali, has resisted the possibility of organizing an armed intervention into the Malian north, fearing that fighting could spill into Algeria or drive militants into the country. Indeed, Al Qaeda in the Islamic Maghreb, one of the militant groups now holding northern Mali, began as an insurgent group fighting the Algerian government in the 1990s. But Algeria has authorized French jets flying missions in Mali to cross Algerian airspace.

Oil and gas are central to the Algerian economy, accounting for more than a third of the country’s gross domestic product, over 95 percent of its export earnings and 60 percent of government financial receipts. Large pipelines connect the In Amenas fields with the Skikda liquefied natural gas export terminal, one of two export port facilities that supply gas to France, Spain, Turkey, Italy and Britain. Pipelines from the field also connect with Italy and Spain. In recent years, Algeria was the third largest natural gas supplier to Europe after Russia and Norway, according to the United States Energy Department.

Algeria is also a major oil exporter to Europe and Asia, where its high quality light sweet crude fits perfectly with local refineries. The United States is traditionally a major importer of Algerian crude, although over the last few years much of those imports have been replaced by new oil production in American shale oil fields in North Dakota and Texas.

Algeria has traditionally been known as a secure place for foreign companies to work and invest. Sonatrach and the security forces put tight security around oil and gas facilities during the struggle with Islamic militants in the 1990s, a period when energy infrastructure was never a major insurgent target.

Scott Sayare reported from Paris, and Adam Nossiter from Bamako, Mali. Clifford Krauss contributed reporting from Houston.

Read More..

“GameStick” and NVIDIA “Project SHIELD” Consoles-in-a-Controller on Their Way

Both GameStick and NVIDIA’s Project Shield are upcoming game consoles the size of a game controller, which can hook up to a larger display. Both are powered by Android, Google‘s open-source operating system that’s normally used on smartphones and tablets. And both have working hardware prototypes already. But one is a $ 99 Kickstarter project by an indie group, while the other has the backing of two major companies in the PC gaming world — and will probably be a lot more expensive when it comes out.

Here’s a look at two upcoming TV game consoles that you’ll be able to fit in your pocket or handbag.

GameStick: Exactly what it sounds like

Imagine a tiny, rectangular game controller, sort of like a Wii Remote with more buttons and twin analog sticks. On one side is a plastic bump, that when you pull it off it becomes this gadget the size of a USB memory stick that plugs into a TV’s HDMI port. That’s GameStick, and with 19 days left to go in its Kickstarter fund-raiser it’s managed to raise more than three times the $ 100,000 its creators asked for.

GameStick will have 8 GB of flash memory, and a processor capable of handling modern AAA Android games like Shadowgun, plus 1080p video. If you don’t like the controller it comes with, you’ll be able to connect up to four of your own via Bluetooth, or even use your Android or iOS smartphone or tablet as a controller.

Project SHIELD: A controller that can stop bullets

Maybe it can’t literally serve as a shield. But at about the size of the original Xbox’s controller, the “portable” console NVIDIA showed off at this year’s CES sure looks like it can. It’s powered by a next-generation Tegra 4 processor, and features its own built-in 5-inch multitouch screen for gaming on the go. But it can also connect to a TV, and can even stream PC games via Steam’s Big Picture mode, which was designed for controller games.

A not-so-silver lining?

GameStick’s biggest weakness may be its developer support. Its Kickstarter page mentions the hundreds of thousands of Android games out there, but most of those are only on Google Play, which (unlike most of the rest of Android) is proprietary to Google. Time will tell whether its creators can get enough developers to write games for the platform by the time of its planned April launch, or enough gamers to buy games they might already have on their tablets.

In contrast, between full support for the Google Play store and PC game streaming from Steam, Project SHIELD will have thousands and thousands of games, and there will be no need to repurchase titles you’ve already bought from either store. There’s no word from NVIDIA yet, though, on how much its game console will cost or even when it will launch.

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.

Linux/Open Source News Headlines – Yahoo! News

Read More..

Channing & Jenna Dewan-Tatum Take Pregnant Pause for Dog Walk

People Pets

01/16/2013 at 12:50 PM EST

Channing and Jenna Dewan-Tatum with dogs Lulu and Meeka

All Access Photo/Splash News Online

Pregnancy sure isn't slowing down Jenna Dewan-Tatum!

The American Horror Story actress, who has stayed active while expecting, was joined by husband Channing on Tuesday for a trek through L.A.'s Runyon Canyon with the couple's two dogs, Lulu and Meeka.

"They are my kids," Dewan-Tatum told PEOPLE in October of the pair's furbabies. "I always joke around, 'If I can love my actual kids as much as my dogs, we're golden.'"

Meanwhile, the Magic Mike star has expressed his excitement over expanding the couple's human family.

"The first number that pops into my head is three," Tatum said about the number of children he'd like, "but I just want one to be healthy and then we’ll see where we go after that."

Read More..

ER visits tied to energy drinks double since 2007

SAN FRANCISCO (AP) — A new government survey suggests the number of people seeking emergency treatment after consuming energy drinks has doubled nationwide during the past four years, the same period in which the supercharged drink industry has surged in popularity in convenience stores, bars and on college campuses.

From 2007 to 2011, the government estimates the number of emergency room visits involving the neon-labeled beverages shot up from about 10,000 to more than 20,000. Most of those cases involved teens or young adults, according to a survey of the nation's hospitals released late last week by the Substance Abuse and Mental Health Services Administration.

The report doesn't specify which symptoms brought people to the emergency room but calls energy drink consumption a "rising public health problem" that can cause insomnia, nervousness, headache, fast heartbeat and seizures that are severe enough to require emergency care.

Several emergency physicians said they had seen a clear uptick in the number of patients suffering from irregular heartbeats, anxiety and heart attacks who said they had recently downed an energy drink.

More than half of the patients considered in the survey who wound up in the emergency room told doctors they had downed only energy drinks. In 2011, about 42 percent of the cases involved energy drinks in combination with alcohol or drugs, such as the stimulants Adderall or Ritalin.

"A lot of people don't realize the strength of these things. I had someone come in recently who had drunk three energy drinks in an hour, which is the equivalent of 15 cups of coffee," said Howard Mell, an emergency physician in the suburbs of Cleveland, who serves as a spokesman for the American College of Emergency Physicians. "Essentially he gave himself a stress test and thankfully he passed. But if he had a weak heart or suffered from coronary disease and didn't know it, this could have precipitated very bad things."

The findings came as concerns over energy drinks have intensified following reports last fall of 18 deaths possibly tied to the drinks — including a 14-year-old Maryland girl who died after drinking two large cans of Monster Energy drinks. Monster does not believe its products were responsible for the death.

Two senators are calling for the Food and Drug Administration to investigate safety concerns about energy drinks and their ingredients.

The energy drink industry says its drinks are safe and there is no proof linking its products to the adverse reactions.

Late last year, the FDA asked the U.S. Health and Human Services to update the figures its substance abuse research arm compiles about emergency room visits tied to energy drinks.

The Substance Abuse and Mental Health Services Administration's survey was based on responses it receives from about 230 hospitals each year, a representative sample of about 5 percent of emergency departments nationwide. The agency then uses those responses to estimate the number of energy drink-related emergency department visits nationwide.

The more than 20,000 cases estimated for 2011 represent a small portion of the annual 136 million emergency room visits tracked by Centers for Disease Control and Prevention.

The FDA said it was considering the findings and pressing for more details as it undertakes a broad review of the safety of energy drinks and related ingredients this spring.

"We will examine this additional information ... as a part of our ongoing investigation into potential safety issues surrounding the use of energy-drink products," FDA spokeswoman Shelly Burgess said in a statement.

Beverage manufacturers fired back at the survey, saying the statistics were misleading and taken out of context.

"This report does not share information about the overall health of those who may have consumed energy drinks, or what symptoms brought them to the ER in the first place," the American Beverage Association said in a statement. "There is no basis by which to understand the overall caffeine intake of any of these individuals — from all sources."

Energy drinks remain a small part of the carbonated soft drinks market, representing only 3.3 percent of sales volume, according to the industry tracker Beverage Digest. Even as soda consumption has flagged in recent years, energy drinks sales are growing rapidly.

In 2011, sales volume for energy drinks rose by almost 17 percent, with the top three companies — Monster, Red Bull and Rockstar — each logging double-digit gains, Beverage Digest found. The drinks are often marketed at sporting events that are popular among younger people such as surfing and skateboarding.

From 2007 to 2011, the most recent year for which data was available, people from 18 to 25 were the most common age group seeking emergency treatment for energy drink-related reactions, the report found.

"We were really concerned to find that in four years the number of emergency department visits almost doubled, and these drinks are largely marketed to younger people," said Al Woodward, a senior statistical analyst with the Substance Abuse and Mental Health Services Administration who worked on the report.

Emergency physician Steve Sun said he had seen an increase in such cases at the Catholic hospital where he works on the edge of San Francisco's Golden Gate Park.

"I saw one young man who had mixed energy drinks with alcohol and we had to admit him to the hospital because he was so dehydrated he had renal failure," Sun said. "Because he was young he did well in the hospital, but if another patient had had underlying coronary artery disease, it could have led to a heart attack."

___

Follow Garance Burke on Twitter at http://twitter.com/garanceburke

Read More..

Wall Street flat as Apple gains; Boeing drags Dow

NEW YORK (Reuters) - Stocks held near the unchanged mark on Wednesday as concerns about global economic growth and a drop in Boeing shares offset strong bank results and gains in technology stocks.

Goldman Sachs shares hit their highest level since May 31, 2011 as earnings nearly tripled on increased revenue from dealmaking and lower compensation expenses, while JPMorgan Chase said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record.

JPMorgan shares edged up 0.2 percent at $46.44 and Goldman was up 3.5 percent to $140.27. The KBW bank index <.bkx> gained 0.3 percent.

But with only 37 companies in the S&P 500 having reported earnings so far this season, investors are exercising caution until signs of growth can emerge.

According to Thomson Reuters data, S&P 500 earnings growth is now seen up 2.2 percent from a year ago, Thomson Reuters data showed.

"We didn't have much in the way of earnings, we had some of the big banks, but you've got the heart of earnings season coming up and people are sort of on the sidelines here," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 percent from an earlier forecast of 3.0 percent.

Shares of Dow component Boeing fell 3.3 percent to $74.39, the biggest drag on the Dow, on concerns about its new Dreamliner passenger jets. Japan's two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a series of recent incidents.

The Dow Jones industrial average <.dji> dropped 35.95 points, or 0.27 percent, to 13,498.94. The Standard & Poor's 500 Index <.spx> shed 1.60 points, or 0.11 percent, to 1,470.74. The Nasdaq Composite Index <.ixic> gained 2.91 points, or 0.09 percent, to 3,113.68.

Losses were curbed on the S&P 500 and the Nasdaq moved higher on a bounce in Apple shares, which were up 3.6 percent at $503.31 after losses in three straight sessions. Morgan Stanley stamped the tech giant as a "best idea," citing overblown concerns about iPhone shipments. The S&P technology sector index <.splrct> gained 0.5 percent.

"Apple rebounding certainly helps the market - if Apple wasn't rebounding I don't think we would be at a flat level," said Ghriskey.

Talks to take Dell Inc private were at an advanced stage, with at least four major banks lined up to provide financing, two sources with knowledge of the matter told Reuters. Shares fell 4.6 percent to $12.57 after jumping more than 21 percent over the past two sessions.

U.S. consumer prices were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path.

Other data showed U.S. homebuilder confidence in the market for single family homes held steady near seven year highs in January, suggesting the outlook for the housing market remained upbeat.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)

Read More..

Iraqi Lawmaker and Sunni Leader Killed in Suicide Bombing

BAGHDAD — An Iraqi Parliament member who was also the leader of a local council of the Sunni Awakening, an American-backed group of Sunni militias that switched sides to fight against Al Qaeda in Iraq, was killed in a suicide bomb attack in Anbar Province on Tuesday, security and government officials said.

The lawmaker, Efan al-Essawi, who owned a construction company, had gone to inspect a road that it was building to connect Falluja with the main highway in Anbar, a trade route that leads west to Syria and Jordan. The region has been embroiled in turmoil since last month, when protests, led mostly by Sunnis, broke out against the Shiite-led government of Prime Minister Nuri Kamal al-Maliki. The demonstrations continued in Anbar on Tuesday.

Officials said that the suicide attacker, disguised as a worker, approached Mr. Essawi and blew himself up, killing Mr. Essawi and injuring one of his guards.

Mr. Essawi had escaped many assassination attempts before. In 2009, attackers placed a magnetic bomb on the armored car that he was using when he was a candidate for Parliament, the first attack on a candidate as those elections approached. He avoided serious injury in that episode.

The province called for three days of mourning for Mr. Essawi, a prominent local figure, and members of his largely Sunni bloc of lawmakers, Iraqiya, boycotted a session of Parliament in protest over the inability of the government to respond to the demands of the demonstrators and its failure to provide adequate security.

“Today our ministers have boycotted the session in the cabinet, as they want to send a message to say that we are closer to the street, not the government,” Leqa Mahdi, a member of Iraqiya from Anbar Province, said in a telephone interview. “This boycott will continue until the government responds to the demands of the demonstrators, until the parties sit down and find real solutions for the current crisis.”

It was not immediately clear who was behind the attack on Mr. Essawi, but one of his close associates said he had seen in a text message a threat by Al Qaeda against Mr. Essawi that said, “We will kill you even if it was the last day on earth.”

The assassination comes as Iraq grapples with political turmoil. A raid last month by security forces on the office and home of the Sunni finance minister, Rafe al-Essawi, and the arrest of 10 bodyguards inflamed tempers and stirred charges that Mr. Maliki, a Shiite, was monopolizing power and marginalizing Sunnis ahead of provincial elections scheduled for April. Rafe al-Essawi is not related to Efan al-Essawi.

 Over the past few weeks, thousands of Sunnis have staged protests, mostly in Anbar, to show their anger against the government. They and senior opposition politicians have made repeated calls for Mr. Maliki to resign.

Iraqi government television reported that Mr. Maliki said on Tuesday that the killers of the lawmaker would be tracked down and punished.

Christine Hauser contributed reporting from New York.

Read More..

See Stars' Slim-Down Superfoods

New year, new resolutions! See how Hilary Duff, Kourtney Kardashian and more are eating well and keeping their A-list figures!

Credit: Courtesy Hilary Duff

Updated: Tuesday Jan 15, 2013 | 06:00 AM EST
By: Nancy Mattia

Subscribe Now

Read More..

Experts: Proposed NY gun law might hinder therapy

NEW YORK (AP) — Mental health experts say a new tougher New York state gun control law might interfere with treatment of potentially dangerous people and even discourage them from seeking help.

The law would require therapists, doctors, nurses and social workers to tell government authorities if they believe a patient is likely to harm himself or others. That could lead to revoking the patient's gun permit and seizing any guns.

In interviews Tuesday, one expert called the new law meaningless and said he expects mental health providers to ignore it, while others said they worry about its impact on patients.

Dr. Paul Appelbaum at Columbia University said the prospect of being reported to local mental health authorities and maybe the police might discourage people from revealing thoughts of harm to a therapist, or even from seeking treatment at all.

"The people who arguably most need to be in treatment and most need to feel free to talk about these disturbing impulses, may be the ones we make least likely to do so," said the director of law, ethics and psychiatry at Columbia. "They will either simply not come, or not report the thoughts that they have."

"If people with suicidal or homicidal impulses avoid treatment for fear of being reported in this way, they may be more likely to act on those impulses," he said.

Currently a mental health professional has a duty to protect potential victims of a patient, but there are several ways to do that, he said. The patient can be committed to an institution, voluntarily or not, or his medication can be changed to reduce the risk, or the intended victim can be warned, he said.

The patient's family can be asked to lock up any guns in the house, or to keep an eye on the patient to see if he's doing something that could bring on violence, like drinking or skipping his medications, Appelbaum said. The family could then notify the mental health professional.

This flexibility allows a therapist to deal with a risk of violence without breaching confidentiality in all cases, he said. And even if those steps are enough to blunt the danger, the proposed law would still require that the patient be reported to mental health authorities, he noted.

"It undercuts the clinical approach to treating these impulses, and instead turns it into a public safety issue," Appelbaum said.

He also noted that in many mass shootings in the past, the gunman had not been under treatment and so would not have been deterred by a law like the proposed measure.

Dr. Steven Dubovsky, chairman of the psychiatry department at the University at Buffalo, called the new measure meaningless. "It's pure political posturing" and a deceptive attempt to reassure the public, he said.

The intent seems to be to turn mental health professionals into detectives and policemen, he said, but "no patient is going to tell you anything if they think you're going to report them."

A therapist who took the measure seriously would have to warn patients about revealing anything incriminating, which would destroy the doctor-patient relationship, he said.

At the same time, he said the law can't be taken seriously because therapists won't be held liable if they don't report a patient they think is dangerous.

He thinks most therapists will ignore the law and continue to handle cases as they do now.

Dr. Mark Olfson, a psychiatry professor at Columbia, said that if the new law is "crudely applied," it could "erode patient trust in mental health care professionals," essential for effective care. Yet, he said, "if the law is implemented in a clinically well-informed manner, it holds the promise of helping to protect patients and the general public."

Eric Neblung, president of the New York State Psychological Association and a psychologist in Nyack, NY, called the new measure "a helpful step" but said it doesn't address a more fundamental need — improved access to mental health services.

---

Medical writer Lindsey Tanner reported from Chicago.

Read More..

Wall Street pulls flat as Apple pares losses, retailers gain

NEW YORK (Reuters) - Stocks pared losses and pulled near the unchanged mark on Tuesday as tech heavyweight Apple came off earlier lows and economic data helped retailers advance.

Apple fell for the third day in a row as the biggest drag on both the S&P 500 and Nasdaq 100 <.ndx> after reports on Monday of cuts to orders for iPhone parts. Shares were down nearly 2.5 percent at $489.11, rebounding somewhat from a session low of $483.84, its lowest level since February.

Retailer stocks advanced and helped to minimize the market's decline after a government report that retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth. However, a separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.

"It's trying to push its way up in here, the question is, has Apple stabilized maybe a little bit down here? The retail sales numbers were really good, much better than expected this morning and that is helping the whole retail group," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

"The bulls are clearly trying to take control of this market and hold it up here. There is clearly buying on any of the dips."

American Eagle Outfitters Inc gained 4 percent to $20.43 and Gap Inc rose 3 percent to $32.32. The Morgan Stanley retail index <.mvr> climbed 1.2 percent.

Investors also continue to eye the looming debt ceiling debate. On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.

Resolving the debt ceiling debate is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.

The Dow Jones industrial average <.dji> shed 1.42 points, or 0.01 percent, to 13,505.90. The Standard & Poor's 500 Index <.spx> dipped 0.46 points, or 0.03 percent, to 1,470.22. The Nasdaq Composite Index <.ixic> lost 6.30 points, or 0.20 percent, to 3,111.20.

An expected lackluster earnings season also kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.8 percent from a year ago, Thomson Reuters data showed.

Homebuilder Lennar reported a sharp rise in quarterly profit, but the stock fell 2.1 percent to $40.16 on worries that growth in orders was slowing. The PHLX housing sector index <.hgx> declined 0.3 percent.

Express Inc surged 22.5 percent to $17.22 as the biggest percentage gainer on the New York Stock Exchange after the apparel retailer raised its fourth-quarter and full year 2012 outlook.

Dell Inc shares added to earlier gains, up 5 percent to $12.91 after sources said talks to take the computer maker private are in an advanced stage.

Facebook declined 1 percent to $30.66 after the company unveiled a "graph search" feature that CEO Mark Zuckerberg said would help its billion-plus users sort through content within the social network and its content feeds.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)

Read More..